30 March - 5 April 2000

Cheaper mobile prices approved by telecoms regulator

by David Kelleher

The Telecommunications Regulator has approved, in part, Vodafone's proposals to revise its mobile tariffs and also Maltacom's tariffs for ISDN.

Both companies were informed of the regulator's decision in a letter hand-delivered last Friday afternoon.

The decision, which was welcomed by both companies and their clients, brings to an end a dispute that had been raging since November of last year when both Maltacom and Vodafone announced plans to introduce ISDN and to reduce mobile charges respectively.

Speaking to The Malta Business Weekly yesterday, the Minister for Telecommunications Censu Galea said the Regulator had approved the revised tariffs for Vodafone and ISDN.

"Both companies were informed of the decision last Friday. With regards to Vodafone's proposals these were accepted except for the inter-network rates.

Admittedly, Vodafone did not submit this tariff in its second application. On the other hand Maltacom's tariffs for ISDN were also approved last Friday," Mr Galea said.

The new tariffs come into effect on 1 May. Asked to comment on a letter sent to Vodafone subscribers in which the company said it was considering taking legal action against the Telecommunications Regulator, Mr Galea said it was odd that the letter had been released.

"Vodafone were informed of the regulator's decision on Friday. My feeling is that the letters had already been despatched and could not be withdrawn. I doubt whether the letter was distributed even though approval had been given," Mr Galea told The Malta Business Weekly.

In the letter managing director Joe Grioli said the aim (of the letter) "is to focus on our efforts to provide Vodafone Malta customers with a lower price tariff".

Giving a chronological account of what has happened since November of last year, Mr Grioli said that despite numerous calls on the regulator to reduce the tariffs, no positive reply was ever received from him.

With both the government and the Regulator not taking action and with Maltacom plc officials publicly expressing themselves against the proposed tariff reductions until the advent of competition, Mr Grioli said that "now, we are considering legal advice received on the matter and will act accordingly.

This may include taking legal action against the Telecommunications regulator."

In the light of developments last Friday, the strong contents of the letter do not make any sense. In a statement yesterday, Vodafone said it had received partial approval of its application and would be publishing the new tariffs next week. With regards to the letter Vodafone said: "It is regretted that our recent letter to our subscribers informing them of delays in approval of our applications to reduce tariffs has crossed the Regulator's letter of approval of most of th changes proposed. Any inconvenience caused by the timing of our letter is regretted."

In its proposals to the Regulator, Vodafone called for an average of 25 per cent reduction on tariffs and an extension of 100 per cent of the current time window on its etalk tariff.

Vodafone also wanted to offer a reduced intra-network rate. This means that calls by mobile to another mobile user on the same network (Vodafone to Vodafone) would be cheaper than from Vodafone to "Newmobile", for example.

"The regulator has approved Vodafone's request to extend the top-up card's window to 60 days from 28 days. He has also approved reduction in the tariffs however this is less than the 25 per cent that Vodafone had asked for," Minister Galea said.

Meanwhile, the company will, as from next month, be offering excellent rates and discounts to etalk users and new etalk subscribers. The rates will be announced in the local press over the weekend.

New subscribers to etalk will now be able to benefit from a free connection saving Lm34.50. A new etalk package will during April cost Lm15 instead of Lm34.50 and it will also include a 28-day Lm10 top-up voucher.

For already existing subscribers, the Lm10 top-up card will not be valid for 60 days instead of 28 days. Vodafone has promised its contract customers that the April bill include surprise savings.

The approval of Vodafone's new tariffs gives the company a bit of headway in the market until Mobisle Communications Ltd is granted the frequencies to operate.

Mobisle, which is a 100 per cent owned subsidiary of Maltacom, had objected to the new tariffs until the advent of competition.

Asked whether the rates will come into effect only when Mobisle will start operating, Mr Galea said that one still had to see whether Maltacom, in fact, had a licence to operate as a mobile company.

"The issue goes beyond the simple issuing of frequencies. There is still the question of whether it can operate or not as a mobile services provider.

Maltacom's appeal is still being heard by the Telecommunications Appeals Board," Mr Galea told The Malta Business Weekly.

Reports in the local press, especially the political newspapers, last week announced the government's plan for liberalisation of the telecommunications sector.

Newspapers reported that the government had sent a letter to the three main operators informing them how liberalisation would take place. However, Mr Galea said:

"I would not use the word letter but rather correspondence. Discussions are still ongoing with the operators and nothing has been finalised. The government said it will be publishing its plans by 31 April, yet it will take a bit longer than that."