NEWS | Wednesday, 18 July 2007

MCA confirms 2010 turn-off date for analogue terrestrial TV

Charlot Zahra

The Malta Communications Authority (MCA) has confirmed that the turn-off date for all analogue terrestrial television broadcasters will be at the end of 2010 as established in the policy on Digital Terrestrial Television (DTTV) issued by the Government two years ago.
By that time, all existing analogue terrestrial television broadcasters – PBS, NET TV, One TV and Smash TV – will have to migrate to DTTV transmission.
Speaking during the launch of the 2006 annual report of the MCA last week, MCA Chairman Joseph V Tabone explained that the frequency spectrum currently occupied by analogue terrestrial television broadcasters will be required for other purposes.
He explained that existing analogue terrestrial television broadcasters are already being carried by digital network operators Melita Digital and GO Plus (except for Smash TV on Multiplus).
However as a contingency measure, existing terrestrial television broadcasters will be allowed to broadcast in digital mode independent of network providers if they satisfy the General Interest Obligations (GIOs) set out in the DTTV policy.
Tabone said a consultation document is expected to be issued by the MCA about the fate of existing analogue terrestrial television broadcasters “in the next few weeks”.
Commenting on the MCA’s achievements last year, Tabone said it was “a landmark year, in that for the first time, consumers have a choice of service provision for local fixed telephony, as well as for TV transmission networks.”
The year under review saw continued growth in mobile telephony take-up reaching a penetration rate of 86 per cent, while SMS usage registered a substantial year on year increase, reaching nearly half a billion SMSs. This translates into a per capita average of 89 SMSs per month.
It is interesting to note that 25 per cent of all turnover generated from mobile networks is the result of roaming traffic between Maltese and foreign networks.
Broadband penetration reached 16.6 per cent at end year, a figure still considered as low when compared to the EU average.
On the other hand, VoIP continued to play a pivotal role in the market for international fixed minutes. As from the second quarter in 2006, VoIP minutes exceeded 57.5 million – mainly driven by GO’s carrier selection service branded ‘Ten21’.
2006 also saw a spate of innovative services becoming available, including bundled offers, much of this the result of interconnection agreements reached between operators following the Authority’s intervention. This year also saw a further reduction of 30 per cent in interconnection charges. Interconnection is a prerequisite of competition in communications market as it allows users on one network to connect with users on other networks.
A survey conducted by the MCA on the subject of eCommerce revealed that 27 per cent of the population shop online and 55 per cent of these do so on a regular basis, in line with the EU average. The most popular items that are bought online are books, followed by electronic equipment and music. Results of these surveys have provided a good indication of the market in this regard and will allow the MCA to develop its action plan in relation to eCommerce.
During 2006, the MCA continued working with Maltapost in line with its responsibility for the postal sector. Improvements have been registered in next day delivery, reaching more than 92 per cent as against 91 per cent in the previous year. In the last quarter of 2006 alone, 18 million domestic postal items were delivered.
Two major factors dominating the MCA’s activity in this period were the market reviews and the relocation to new offices at the Valletta Waterfront.
There are 18 designated markets, which have to be analysed regularly. Following this, the EU Commission has to be notified on the state of play in each market and remedies imposed in instances of significant market power.
These market reviews measure competition in a sector, which historically consisted of a triad of monopolies. To date, the MCA has concluded 16 of these markets and two are still pending.
The promotion of competition is the primary objective of the Authority. This objective is premised on the concept that a competitive market, and one that is sustainable in the long term, maximises consumer welfare through improved value for money, innovation and choice.
‘This was amply evidenced in 2006, when competition continued to drive down retail prices while at the same time further expanding product and service offerings’, said Tabone.
The sectors the MCA regulates generate close to a Lm 120 million worth of economic activity or approximately 5 per cent of GDP. This share, he said, is twice as much that registered in other developed countries.
In 2006, the growth rate in the communications sector was at the previous year’s levels, but prices for electronic communications services have gone down, meaning that more services were purchased last year.