February
2001
Malta
Master Report
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Malta Master Report |
1. Introduction
2. Cable TVIn order for this report to be interpreted in the right perspective it would be appropriate to start right away by highlighting the restricted size, form and scale of the Maltese archipelago, making certain requirements that are suitable for larger countries unnecessary or of lesser priority for such a microcosm.
The physical size of the Maltese Islands imposes certain natural limitations on the variety of utility services that could feasibly be provided, some of which might not even be necessary. Worth mentioning is the fact that there are no railways or highways and thus no surveillance and monitoring network alongside. Furthermore, travelling long distances is only required when going off shore and this is obviously done by air or by sea. This in turn limits the need for alternative telecommunications networks within the archipelago.
The main utilities that serve the islands are Water, Drainage, Electricity, Telephony and for the past decade Cable TV. Apart from Cable TV, which is actively evolving into an alternative telecommunications network, so far none of the utility organisations publicly expressed an intention to diversify into other business areas such as telecommunications or to have their own facilities available. Once telecommunications services are liberalised, utility organisations might consider having their own networks and extend their portfolio of services in this direction.
One could however assume that there are no immediate plans for utility organisations to set up their own infrastructure for telecommunications. There are a number of important factors that play a significant role if and when utility services organisations consider setting up their own facilities. The main contributing factors include:
- The country is well served with a modern network of data and voice communications, which is generally used for all the communications requirements of utility organisations.
- Local telecommunications costs, particularly those for voice services, could be considered as very low and thus attractive and convenient for these organisations.
- The range of telecommunications services offered by the incumbent operator exceed the requirements of utility organisations.
- There is a general shortage of human resources in technical areas particularly information technology and telecommunications and so utility companies would have to offer relatively high remuneration packages on the outset, if they decide to acquire a workforce and set up the necessary infrastructure.
- In general, there is room for improvement in almost all utility services. This restricts utility providers to concentrate their efforts on improving their core business as a matter of priority.
The Cable TV (CATV) company, Melita Cable p.l.c. was established towards 1990 and since then embarked on an intensive project to lay its own network and infrastructure to reach as many households as possible on the islands of Malta and Gozo. Its network is a hybrid of optic fibre and co-axial cable with active electronic equipment distributed in the streets close to the subscribers. The last part of the distribution network is generally installed above the ground. Network coverage is estimated to be about 80%. Part of the infrastructure of Melita Cable is installed in duct routes hired from Maltacom p.l.c. (formerly Telemalta Corporation), the incumbent operator of telecommunications services in Malta.
During 1999, the CATV company had shown increasing interest in providing data services over its network, particularly Internet access. In order to provide these services, the active equipment in its network needed to be upgraded to handle two-way communications instead of the original one-way, downstream to the subscriber. Two-way communication over the CATV network would allow users to be interactive thus enabling them to convey their feedback towards the head end at which point users’ requests could be analysed and serviced. In the traditional system, the user just selected channels from the set of stations that were pumped into the CATV distribution system from the head end. No feedback was ever required from the user and thus it was not necessary for the street equipment to have full duplex capabilities. If the company were to provide Internet access, then user responses would be an important part of the service offered.
One of the most important developments that took place during 1999 was the partnership between one of the local Internet Service Providers (ISP) and the CATV company. The company had also announced an alliance with an American company that provided Web TV services.
Towards mid-1999, the company revealed that in a short time it will be in a position to demonstrate Cable Internet over its infrastructure to the public during the annual Information Technology & Telecommunications (IT&T) Fair. Pilot testing had already been carried out and the company claimed that it was technically successful.
Internet Service Providers (ISPs) however, reacted to the announcement and demanded a level playing field for all Internet providers from the Telecommunications Regulator. As a result, new telecommunications regulations were issued some days before the mentioned event by the Regulator, whereby the CATV company was obliged to allow ISPs to make use of its network. The CATV company was granted ninety days within which to provide ISPs with access costs.
Amongst other things, the new regulations stipulated that a company can only provide Internet access through one subsidiary company. One of the Internet providers had commented that the regulations gave equal footing but some areas had to be discussed further. He continued that anyone offering Internet access had to be in possession of a license. Licensing fees and associated regulations formed part of the new set of rules.
Maltacom p.l.c. also reacted to the announcement that Melita Cable will be launching Cable Internet in the IT&T Fair, primarily because the former had the license to operate as the sole telecommunications provider at the time. This had been manifested with strong statements issued by both companies some time after the announcement. Maltacom claimed that Melita Cable did not have the license to provide data services over its CATV network. Melita Cable denied.
Further developments related to the provision of Internet service over cable TV infrastructure were reported by Melita Cable p.l.c. during the last quarter of 1999. Demonstration of Cable Internet was one of the main attractions at the annual IT&T Fair. During this fair however, the company announced that even though it had the solution, it will not be offering the service in the short term. The company continued to upgrade its infrastructure in the following months and by the end of year 2000 most of its external network had been upgraded.
During year 2000 government announced plans for liberalisation including the end of the monopoly of cable TV on the 1st of June 2001. Fixed telephony service will be liberalised on the 1st of January 2003.
During the second half of year 2000, the company started to deploy Internet service over its network in a limited number of towns. It is expected that the company gradually continuous to extend this service to all towns and villages in the coming months.
3. The Malta Government Network (MAGNET)
Towards the beginning of the nineties, Government felt the need to modernise and improve its operations. The Management Systems Unit (MSU) was set up as a limited liability company wholly owned by Government to improve the then existing operations within Government departments and ministries. The main objective of the company was to review existing processes and systems and apply information technology within Government operations in order for the Civil Service to be more effective.
This resulted in the setting up of a number of information systems linked through a modern communications infrastructure. Although basic communications facilities were provided by the main telecommunications carrier, MSU installed state-of-the-art networking infrastructure which facilitated the sharing of valuable information over the Malta Government (wide area) network, nicknamed MAGNET.
Within the past three years or so, the objectives of the company have been reviewed and the company’s name has been changed to Malta Information Technology and Training Services (MITTS) Limited. The company is still maintaining and modernising the facilities that have been installed to keep up with the ever-increasing demands for more effectiveness and co-ordination within the Civil Service.
Even though this is not in itself a public network, the number of users (within the civil service) that are connected to it to share information and resources cannot be underestimates given the limited size of the local market. MAGNET also provides direct access to the Internet and e-mail facilities to Ministries and Government departments.
During the last quarter of 1999, the Minister of Justice and Local Government announced project plans to link Local Councils to its network so that it may be possible for them to access Central Government resources and to provide Government services on-line. The project was launched during the first part of year 2000. By the end of the year, local councils were connected to this network and further developments are underway to have e-Government facilities made available to a wider range of users as the project continues to evolve further.
This can be considered as a significant development to the Malta Government network. As MAGNET expands further, so does the potential of having another alternative data communications network on the island.
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