February 2001

Malta Master Report

2.1 Historical overview and general legislation

Malta separated the legal regulatory functions from the operation of telecommunications networks and services which since 1975 had been vested in Telemalta Corporation in December 1997 with the enactment of the Telecommunications (Regulation) Act 1997.

The 1997 law established the office of the Telecommunications Regulator responsible for the supervision of the telecommunications sector, for the issuing of licences for the provision of telecommunications services, for the establishment of a numbering plan, for monitoring interconnection agreements, establishing technical standards and generally ensuring compliance with law. From that law on, any person installing or operating a telecommunications infrastructure or providing a telecommunications service in Malta requires a licence or permit from the Regulator.

In 1998, to emphasise further this distinction between the Regulator and the Operator Government placing the responsibilities for the regulation of Telecommunications and for Maltacom Plc (of which the Government remains a sixty per cent shareholder) under separate Ministries, the Ministry for Transport and Communications and the Ministry for Economic Services respectively.

The European Commission, in its Report updating its Opinion on Malta's Application for Membership in 1999 makes reference to this further regulatory distinction – "From the institutional point of view, the requirement of the separation of the regulatory function from the state’s control function over Maltacom has been fulfilled: the telecommunications regulator reports to the Ministry of Transport and Communications whereas the ownership function is exercised by the Ministry of Economics.

At the same time that the new telecommunications act removed Telemalta as the regulator, Telemalta was succeeded by a public limited company, Maltacom Plc, set up in December 1997. Maltacom Plc was granted a twenty-five (25) year operating licence with exclusivity to provide fixed line voice telephony, data services, DCS 1800 and UMTS, other specified services and all ‘residual’ services up to the year 2010. Maltacom’s licence carried with it the obligation to provide voice telephony services within a reasonable time to all applicants and to provide interconnection to its network to other authorised providers.

In June 1998 the Malta Government, through an International Public Offering (IPO) sold 40% of the equity of Maltacom. Twenty per cent (20%) of the shares were sold on the domestic market and another twenty per cent (20%) were offered for sale to institutional investors on the international market, in the form of Global Depository Receipts (GDR’s). The Company’s shares were traded for the first time on the London Stock Exchange and the Malta Stock Exchange. Slightly over 40.5 million ordinary shares with a nominal value of Lm0.25 were offered in the IPO at Lm0.90 per share. The share offer in Malta was oversubscribed and there are now almost 8000 shareholders, 60% of which are private individuals. On the London Stock Exchange the share issue was subscribed almost five times over.

The Internet and Other Data Networks (Service Providers) Regulations, 1999, were published on Friday 8th October. The new regulations are aimed at resolving the thorny questions of whether Melita Cable, the cable company holding a monopoly, was breaking the law by not allowing the ISPs to make use of its network for Internet access. However the regulations did not solve the issue and Melita simply did not open its network by not launching its Internet access over cable.

On the 29^th of April 2000 the Government published its Policy for the Liberalisation for the Telecommunications Sector as part of a draft bill that would set up the Malta Communications Authority. The bill, the Malta Communications Authority Act, 2000, was approved in July.

For the full text of the legislation is available at: http://justice.magnet.mt

In May 2000 the Government published the Information Practices Legislative Framework, drawn up and proposed to Government by a Working Group that encompassed three aspects of information practices. The Bills in the framework are: Electronic Commerce Bill, Data Protection Bill and Computer Misuse Bill. The Electronic Commerce Bill and the Data Protection Bill were discussed in Parliament and their 2^nd reading approved in November. They are now being discussed at a committee stage by the House Committee for the Consideration of Bills.

The Central Management Information Unit (CIMU) has overall responsibility for the publication of the Framework. http://cimu.magnet.mt

The current scenario of telecommunications in Malta now is constituted by:

• Maltacom plc providing fixed line telecommunications services (monopoly)
• Vodafone (Malta) Ltd and Mobisle Communications LTD (under the go mobile brand), providing mobile telephony GSM900/1800
• Telepage Ltd providing paging
• Melita Cable providing cable television services and providing pilot data services (monopoly)
• Elsacom, Malta’s second international satellite services operator
• Various Internet Service Providers

The law, regulations and notices governing Telecommunications, besides the Wireless Telegraphy Ordinance, the Telecommunications Act and the Rate Mechanism Notice, mentioned above, are:

• Telecommunications (Universal Service Obligations) Regulations, 1998
• Telecommunications Appeals Board (Jurisdiction) Regulations, 1998
• Telecommunications Appeals Board (Rules of Procedure) Regulations, 1998
• Telecommunications Apparatus (Standards) Regulations, 1998
• Fees for Type Approval of Telecommunications Equipment Regulations, 1998
• Authorised Providers (Provision of Information) Regulations, 1998
• Malta Communications Authority Act, 2000
• National Plan for the Reform of the Telecommunications Sector (Article 44, Telecommunications Act)

2.2 Umbrella Policies and national IS strategy

NSIT

The national IS strategy was laid out in 1994 in the National Strategy for Information Technology. However the recommendations were not implemented and a review was done in February 1997. The review led to the setting-up of the National Commission for Information Technology. However a change in the administration of Malta in 1998 led to the dissolution of the Commission. The Strategy was not reviewed again or its recommendations implemented by the present administration.

ISSP

The government’s IT strategy at a national level is drawn up in the form of the Information Systems Strategic Plan (ISSP). The ISSP for 1999-2001 was commissioned by the Office of the Prime Minister to establish a direction for further information systems investment within the Maltese Public Service for this period of time.

The proposed policy direction for the Public Service for the period 1999 – 2001 is primary directed towards a process of consolidation, maximisation and optimisation of the IT investment to date. Three thrusts are consequently being undertaken.

The first thrust is directed towards the establishment of an institutional framework that should result in the inculcation of an information management culture in the Public Service. Consequent to this, steps are underway to initiate a process of capacity building of Information Management Units within three Ministries in 2000 – units which will assume responsibility for management information, strategic planning, IT project management, and central policy and standards implementation within the specific ministry portfolio. In tandem with the need to establish the appropriate organisational framework, an aggressive human resource competency building has been undertaken.

The second thrust is directed towards ensuring that IT supports the Government’s policy objective to improve delivery of services provided by the Public Service to its clients: whether these are individual citizens, the business community or local councils.

The third thrust is directed towards establishing the appropriate legislative framework to allow for good governance and nation-wide use and acceptance of IT and IT-based activities such as business and use of personal data. In this regard efforts have been directed towards addressing three fundamental issues: legal use; privacy; and attaining functional equivalence between electronic and traditional methods (signature, documents, records, etc).

Liberalisation of Telecommunications

In April 2000 the Government published the National Plan for the Reform of the Telecommunications Sector (Article 44, Telecommunications Act), in-line with the Acquis Communautaire. The government announced its intent to enact a legislative framework to make the proposed reform possible and to put in place an effective regulatory regime that would have the capability and clout to ensure the maintenance of a healthy and competitive environment in the telecommunications market.

Government determined the following liberalisation time frame:

• All telecommunication services, other than fixed telephony, mobile telephony, international gateway and cable television, will be liberalised from l June 2000.
• The present monopoly in mobile telephony will end immediately when Maltacom will be licensed to enter the mobile telephony market. No additional mobile licences will be issued during the period ending 31 December 2002. The government will consider the issue of a third operator in 2003 and a third licensee would therefore not be expected to be in place before 1 January 2005.
• The cable television market is to be liberalised on 1 June 2001.
• International gateway services, including those for data services, will be Iiberalised on 1 January 2003.
• Fixed telephony services will be liberalised on 1 January 2003.

On-line betting

The government has issued an incentive package to attract on-line betting companies to transfer their operations to Malta. To this affect, the government has issued the Operation of Betting Offices Regulations (2000), no.70.04

2.3 IS Application Areas (general overview)

Public administration and telecommunications are the two areas that has received the most attention in the application of IS. The main reason is that these sectors are directly controlled by the government and are proving to be the prime movers that are setting everything in motion. With the necessary telecommunications regulation in place, the liberalisation process is in full swing. With the implementation of the e-government concept, a ripple effect will be felt with other application areas.

2.4 Government and administration (national, regional, local)

The Central Information Management Unit (CIMU) submitted an e-Government Vision and Strategy document to the Minister of Justice and Local Government in July 2000. The Vision is underpinned by a number of critical principles, such as that:

• electronic service should be easy to access in terms of speed, entry points and cost;
• there is to be universality of access;
• users are to be able to access the services at all times and on all days; and that
• confidence and trust will be maintained.

A three-tier architecture is perceived to be required to attain e-government. The first tier is the portal, which will act as the single access window point for all government services (within which will reside the authentication rules and security).

Within the portal will also reside the data protection rules to ensure that privacy of the individual's data is maintained at all times. The portal will have the transaction and messaging management regime, on-line directory, etc. Moreover, it will allow the individual user to personalise the portal.

The second tier relates to the delivery channels wherein existing as well as emerging technologies will interact with the portal. Delivery channels will range from WAP and mobiles, Web and Internet, digital TV, kiosks, call centres and local councils acting as service centre points between the citizen and the central government.

The third tier relates to the back end - and this is where the existing applications reside - and will interact with the portal.

Interaction is envisaged to take place through virtualising existing public services on a 'lifecyle basis' - that is, the clustering of services around an episode (ex business) the transaction of which will trigger a considerable number of events (opening a business will require a VAT number, a company tax number, etc.).

Following the submission of the strategy, the Government published a White Paper describing a vision and strategy for the attainment of electronic Government in Malta. The document details the initiatives that the Government is proposing for the creation of the national environment required for the electronic provision of Government services. These include the setting up of an Information Society and Economy Commission; the undertaking of a nation-wide capacity building exercise; the setting up or review of relevant organisational structures within the Public Service; the adoption by Government of a three-tier technology architecture and related infrastructure to ensure security, privacy, service integration and scalability; the restructuring of Government web sites with the creation of a user-friendly e-services web site; and the adoption of multiple service delivery channels.

CIMU
http://cimu.magnet.mt

2.5 Telecommunications and Internet

The current scenario of telecommunications in Malta (June 2000), reads as follows: 

2.6 Electronic Commerce

In November Parliament approved the 2^nd reading of a bill that regulates e-commerce in Malta. The bill is being discussed at the committee stage and should be approved in early 2001. A white paper on this bill had been published in May, and it was followed by consultations with all interested parties.

The objects and reasons of the Electronic Commerce Bill are to facilitate the use of electronic commerce, communications and transactions; to promote confidence in the use of electronic commerce and communications, and to enable the business sector and the community to use electronic communications in their dealings with the government. The bill also amends the Criminal Code by introducing computer misuse.

The amendment to the criminal code lists possible cases constituting computer misuse include unauthorised access to data, software or supporting documentation; the unauthorised prevention or hindrance of others from accessing data, the unauthorised destruction or transfer of data, disclosure of passwords or access codes to unauthorised persons, the unauthorised use of other persons' passwords or access codes and the unauthorised modification of computer equipment.

The bill includes safeguards regarding the laws on wills and testaments, the creation of power of attorney, the taking of affidavits, the family law and the transfer of immovable property.

The Electronic Commerce Act conforms to EC Directive 1999/93 on a Community framework for electronic signatures. It has also taken into consideration the proposed Directive of the European Parliament and of the Council on certain legal aspects of electronic commerce in the Internal Market. This Directive is due to come into force shortly and no substantial changes to the proposed draft are anticipated.

The bill draws on a variety of sources, including the United Nations Commission on International Trade Law (UNCITRAL) Model Law on E-Commerce of 1996, the European Union directives mentioned above, as well as from the legislation of other jurisdictions, primarily Australia and Eire.

While it provides a homogenous legal framework it is not prescriptive and it allows flexibility in its development through the issuing of regulations by the Minister for Communications. This flexibility for development is important both in terms of advances in technology and possible changes to the EU directives.

2.7 Education and research

There is no specific regulation governing IS in education and research. These are covered by umbrella policies and national IS strategies.

The Ministry for Education has set the 2004 date as the deadline to have all personal computers in public schools connected to the Internet. This policy is inspired by the European Commision’s document eEurope.

The Ministry for Education is responsible for Science and Technology Policy in Malta. Such policy is drawn and implemented by the Malta Council for Science and Technology (MCST).

MCST
http://www.mcst.org.mt

2.8 Transport

There is no specific regulation governing IS in transport. These are covered by umbrella policies and national IS strategies. However the fact that the Ministry for Transport is also responsible for Telecommunications is an advantage to the transport sector.

2.9 Health care

The Department of Health has its own Information Systems Strategic Plan (ISSP) for the implementation of IS strategies.

2.10 Labour

The government has issued regulations on the recruitment of new employees with the public services, and these include computer literacy as a pre-requisite for certain posts, including that of clerk.

The Employment and Training Corporation has launched some initiatives to promote It literacy amongst the unemployed and those seeking better jobs.

2.11 Competition

Competition is regulated by the Malta Communications Authority, which will be taking over from the Office of the Regulator from 2001 (see 3.2). The Office for Fair Trading, as a general authority, is also responsible of ensuring fair trading practices.

2.12 Access for all

The Equal Opportunities (Persons with Disability) Act (2000) provides a guarantee of access to persons with special needs.

2.13 Copyright, intellectual property rights

Copyright and intellectual property rights are covered by articles in the Criminal Code, the Copyright Act, the Industrial Property (Protection) Ordinance, and the Intellectual Property Rights (Cross-Border Measures) Act among others.

2.14 Public access to data

Public access to data is included in Data Protection Bill (see 2.15).

2.15 Privacy, data protection, consumer protection

The purpose of data protection legislation in the Information Practices Legislative Framework is to safeguard the individual's right to privacy. The Data Protection Bill, currently being discussed at the committee stage in Parliament, conforms to the requirements of EC Directive 95/46 on the protection of individuals with regard to the processing of personal data and on the free movement of such data.

This Bill draws from a number of sources; namely the Data Protection Directive (95/46/EC), as well as from the legislation of other jurisdictions, primarily Sweden. The Bill also borrows from the Italian Data Protection Act 1997, in relation to the functions of the Regulator and to journalistic freedom; and the Portuguese Protection of Personal Data Act 1998, with regard to the provisions relating to the transfer of personal data to third countries.

2.16 Security

The Computer Misuse Bill as part of the Information Practices Legislative Framework proposes to introduce a number of criminal offences that deal with the unauthorised use of and access to computers and their paraphernalia (such as storage media and supporting documentation). This is intended to keep our criminal law up-to-date with technological developments and new forms of crime. The Bill is based on:

• The OECD report on Computer Crimes of 1986
• The Council of Europe recommendations on computer crimes of 1989
• Recommendation R(95)13 of the Council of Europe on problems of criminal procedure law connected with information technology

Other legislation reviewed includes that of other jurisdictions, including the UK, Malaysia and of a number of US states. However, the Bill is not based on a single model but seeks to draw on a number of sources.

2.17 Freedom of expression and information as far as the distribution via electronic networks is concerned

Freedom of expression is guaranteed by the Constitution of Malta. However certain restrictions apply where decency, morality, national interest and other matters are concerned. The Communications Authority is responsible for regulating the provision of services through the ICT infrastructure, while the Broadcasting Authority is responsible to oversee the contents being delivered on the these electronic channels. Malta does not have legislation about the freedom of information yet.

2.18 Others

There seem to be no other issues.

3.1 Ministries

The Ministry for Transport and Communication is responsible for the telecommunications sector in Malta. It has the power to appoint the chairman of the Communications Authority and issue subsidiary legislation in this field.

The Ministry for Justice and Local Government is responsible for IS initiatives in the Puclic sector, such as e-government and other IS projects. However the Central Information Management Unit (CIMU) and the Management Efficiency Unit (MEU), both a think thank a driving force in the implementation of IS strategies in the public sector, fall under the office of the Prime Minister. The latter is responsible for Government Information Technology Services, the Malta Information Technology Training Services (MITTS) and the Broadcasting Authority.

The Ministry for Economic Services is responsible for the incumbent telecommunications company, Maltacom, which still retains a monopoly and is 60% owned by the Government.

The Government of Malta
http://www.magnet.mt

3.2 National regulatory authorities

The Malta Communications Authority

The Malta Communications Authority is the national regulatory authority where Telecommunications and IS are concerned. However there are other competent authorities in specific fields that are related to IS.

The Maltese Communications Authority, by virtue of the law passed in the House of Representatives in July 2000, will take a regulatory and supervisory role in the development of the Maltese Information and Communications Technology sector. Some of the functions, as listed in the bill, are:

(a) Ensure freedom of communication and that communications shall not be limited except when this is necessary for any of the following reasons:

(i) the protection of the right to privacy;

(ii) the defence of national security, territorial integrity or public safety;

(iii) the prevention of disorder or crime;

(iv) the protection of public health;

(v) the protection of morals and respect for the dignity of the human person;

(vi) the protection of the rights and freedoms of others;

(vii) the prevention of the disclosure of information received in confidence;

(viii) the maintenance of the authority and impartiality of the judiciary;

(ix) the technical constraints inherent in the means of communication;

(b) regulate, monitor and keep under review all practices, operations and activities relating to any matter regulated by or under this Act;

(c) grant any licence, permit or other authorisation, for the carrying out of any operation or activity relating to any matter regulated by or under this Act;

(d) regulate and secure interconnectivity for the production, transmission and distribution of the services, products, operations or activities relating to any matter regulated by or under this Act;

(e) ensure fair competition in all such services, products, operations and activities;

(f) establish minimum quality and security standards for any of the said services, products, operations and activities and to regulate such measures as may be necessary to ensure public and private safety;

(g) carry out studies, research or investigation relating to any matter regulated by or under this Act;

(h) provide information and issue guidelines to the public and to commercial entities relating to any matter regulated by or under this Act;

(i) regulate the price structure for any activity regulated by or under this Act and where appropriate to establish the mechanisms whereby the price to be charged for the services, products, operations or activities is determined;

(j) establish measures for the protection of the environment in the provision of the services, products, operations or activities relating to any matter regulated by or under this Act;

(k) advise the Minister for Communication on the formulation of policy in relation to matters regulated by or under this Act, and in particular in relation to such international obligations;

(l) formulate and implement the policies and strategies with short-term and long-term objectives in relation to the matters connected with its functions under this or any other Act;

(m) encourage the provision of communications services in Malta and enable persons providing communications services in Malta to compete effectively in the provision of such services outside Malta;

(n) encourage users of communications services to establish places of business in Malta.

Other bodies

Besides the Malta Communication Authority there are other bodies that regulate in their respective field and in doing so regulate certain areas related to IS. EAN Malta, the local article number association is responsible for bar coding and electronic business standards.

The Malta Standardisation Authority is responsible for overall standards in Malta, including some ICT standards.

3.3. Office for the protection of economic competition

Malta Communitactions Authority, Office of Fair Trading

3.4 Consultative councils

In 1997 a consultative council, the National Commission for Information Technology (NCIT), was set-up with the aim of drawing and updating the national strategy in ICT and provide consultancy services to the government in the field. However the NCIT has not been convened since September 1998 and is regarded as dissolved.

Then in October 2000 the Minister for Justice and Local Government announced that the Cabinet of Ministers is considering the setting up of an "Information Society and Economy Commission", which would be empowered to act as the catalyst to transform the island into an information society and economy. No details have been announced yet of its terms of reference, composition, etc.

3.5 Bodies in charge of RTD policy

Overall regulatory bodies are responsible for RTD policy.

3.6 Organisations in charge of the promotion of the IS

Once the Information Society and Economy is set-up it will be its duty to promote IS in Malta. However other regulatory bodies could step-in to promote IS in their areas. This has been the case with EAN Malta, which has been actively promoting the use of bar coding, e-commerce, EDI and IS-related technologies and practises for several years.

The Malta Council for Science and Technology is very active in promoting the use of technology and raising awareness of its role in our daily lives.

The Government, through its various ministries and bodies, exploits its strategic place in Maltese society with initiatives to promote events and opportunities related to the creating of the Maltese IS.