ISPs react to draft telecoms regulations

by David Kelleher

Local Internet Service Providers have described the sections relating to market dominance in the new draft telecommunications regulations as a "play on words", The Malta Business Weekly has learnt.

Six ISPs last Friday gave the Minister for Telecommunications, Censu Galea, an extensive report on what they believe should be changed in the new regulations, with particular emphasis on the sections relating to market dominance.

Industry sources told The Malta Business Weekly that all six ISPs had taken a common stand and based their arguments on a report compiled between. In essence, they have told the government that certain sections are simply a "play on words" and are not in line with EU directives that were published in July.

Speaking to The Malta Business Weekly, Mr Galea said that six ISPs had handed in their comments on 1 September, however he was surprised that they had not taken a common position, referring to the Chamber of Commerce's ISP section.

"I received comments from six individual companies but not from the Chamber. Their reports have been passed on to Peter Grech at the Attorney General's office to be examined," Mr Galea said.

Asked whether the ISP's recommendations could result in changes to the regulations, Mr Galea said that if the AG's office sees that the comments made can be reflected in the final document then the regulations could be amended.

Contacted yesterday, Aldo Calleja, chairman of the Chamber's ISP section, said that the chamber did not take a common position because the comments made direct reference to another company that was a member of the Chamber. "It would not be right to send to the minister comments which directly affected another company that was one of our members. Therefore, each ISP sent in its own comments which, however, were based on a report that was drawn up between them and the Chamber," Mr Calleja said.

Last week The Malta Business Weekly revealed that the draft regulations may not be in line with EU directives. Asked to comment, Mr Galea said that he had a meeting with legal experts who insisted that there is nothing wrong with the regulations.

"I have been told that there is nothing wrong with the regulations and that these are in line with EU directives. However, if there is someone who can point out any anomalies in the regulations, these will be taken into

consideration," Mr Galea said. Industry analysts said that the new directives published by the EU on 12 July have removed the word "dominant" and inserted the word "significant".

"A simple change in a word completely changes the interpretation of how one looks at a company's dominant position in the market. The new EU directives clarify what the local regulations are making a mess of," industry analysts told The Malta Business Weekly.

Minister Galea said that the final draft is expected to be completed very soon now that the ISPs have sent in their comments. One ISP said yesterday that they were waiting for the minister's final move before speaking out.

"We have remained very quiet until now, but this does not mean we are going to accept everything as presented to us. Our turn will come," he said.