Dismantling telecom monopolicies

The Malta Independent

Dismantling telecom monopolicies

The liberalisation policy announced for the telecom sector is well thought out and forms an admirable effort to dismantle unsustainable monopolies in a fair and programmed manner without causing undue shocks.

Whilst the players enjoying `monopolies are having to give them up well ahead of schedule `they are` being allowed to compete in hitherto restricted areas. This` seems a fair compensation both for the players involved as well as for the consumer who will be the main beneficiary of liberalisation.

The remaining` blur is regarding the excess labour and skill mismatch which will result at Maltacom when it will have to operate in a liberalised scenario.

Maltacom suffers in this respect much more than the other two participants.` Firstly Maltacom and its predecessors have enjoyed their monopoly for the longest time and therefore needs the sharpest process of adjustment. Secondly, with a long tradition of public ownership Maltacom has the highest burden of` social employment ` employment of` persons surplus to its` true requirements` and with skills mismatched to the requirement of the post.

Such luxuries could be carried as part of the price of enjoying a lucrative monopoly status,` but they become unsustainable in a liberalised commercial environment.

The liberalisation policy makes reference to this by stating that the government should provide for and assist Maltacom in re-training, re-deployment or carrying such excess labour resources.

This seems well intentioned but not concrete enough. The new areas which Maltacom will be entering will demand additional labour resources but it is very doubtful whether effective re-training can be undertaken in good time to address the skills mismatch between those available and those required for the new posts.

Public finances are on the other hand are in bad shape to take the load of additional workers who will remain unproductively employed and burning up scarce resources which we must deploy productively if we are to compete globally.

This is just a symptom of` the massive investment in re-training which is required throughout the public sector and which we continue to talk about, declare good intentions but stopping short of effectively setting up proper schemes well supported by the required resources.

Is this another case of solving problems for today and God help whoever follows`

Alfred Mifsud