Mobisle chief says mobile tariff prices to go down by 50%

by Franco Aloisio

The local market prices of mobile phone tariffs are expected to go down by 50 per cent upon the launch of Mobisle Communications Ltd., the company's chief executive officer, Juanito Camilleri, said in an interview with The Malta Business Weekly.

Mobisle Communications Ltd., a subsidiary of Maltacom, will be operating Malta's second mobile telephony network. At present, Vodafone enjoys a monopoly in the mobile phone sector. Earlier this month, Mobisle signed a contract with Nortel Networks to build its mobile phone infrastructure.

Prof. Camilleri said: "Upon the launch of Mobisle, I would expect prices not be a cent more than the international European benchmarks. After the first year of operation, I would expect prices to go down by 50

per cent, within the range of international rates."

Mobisle's CEO said that mobile phone penetration will also increase when his company enters the market. At present, Vodafone has a 10 per cent penetration rate. This contrasts sharply with the fact that certain countries have a penetration rate of more than 50 per cent.

Prof. Camilleri said that Mobisle will start offering its mobile service six months after it will be granted the frequencies by the Office of the Telecommunications Regulator.

He said he believes the company will be given the frequencies by the end of the month:

"The delay of the frequencies has stretched too long and we are hoping that the frequencies will be granted very soon."

On the liberalisation of the telecoms sector, Prof. Camilleri said that Maltacom cannot compete on a level playing field if the government remains the major shareholder in the company. He said the Office of the Telecommunications Regulator needs to be strengthened.

On the regulator, Prof. Camilleri said: "It is totally unacceptable that I have to submit my tariffs to the regulator two months prior to launch, with the possibility of the tariffs being divulged."

On the issue of Maltacom's strategic partnership, Prof. Camilleri said that this is the government's prerogative. He said the contract with Nortel does not constitute a strategic partnership.

Prof. Camilleri said at present 35 persons are employed by Mobisle. Upon it's launch, the company's workforce will amount to 100 people.