Malta has Europe’s smallest telecom market, but the country has close infrastructural ties to Italy, particularly in the mobile and broadband sectors. These were cemented further following the sale of the incumbent Maltacom in May 2006, since the new owners were required to invest over the next three years to increase data bandwidth between Malta and Italy, enter the digital TV market, launch interactive TV and enhance VoIP services. 2006 saw the launch of 3G services from Vodafone, though its monopoly will be lost in early 2007 as Maltacom’s 3G network comes online. Malta was slow to liberalise certain market sectors, but effective management by the regulator has in recent years has lead to introduction of number portability as well as other important measures to develop competition in a market restricted by its size and the incumbent’s dominance in the fixed-line sector.
The sale of Malta’s incumbent operator in mid-2006 was conditional on a substantial three-year investment program which will have enormous implications for the development of broadband and digital TV in coming years. Malta’s 3G sector was among the last in Europe to be licensed. Vodafone launched services during 2006 and will face competition from Maltacom as its network progresses with the financial backing of its parent Tecom.
Italy’s crowded mobile market is among the more competitive in Europe. Take-up of 3G has increased from 4% of mobile subscribers in 2004 to 19% by mid-2006, one of the highest proportions in Europe. Growth in 2007 is likely to be rapid in the wake of sophisticated mobile TV launches and the spread of advanced technologies such as HSDPA. Italy is poorly served by cable, but the country has an enviable fibre network, with FASTWEB providing one of the most comprehensive footprints in Europe, expected to reach more than ten million homes in early 2007 as the effects of a €3 billion network investment bear fruit.
Italy’s triple play development is one of the strongest in Europe, gaining maturity in 2006 on the back of ADSL2+ and fibre roll-outs. FASTWEB continues to be a leader for fibre deployment in Italy, and an innovator for consumer services. Its popular REPLAYtv and joint partnership agreements with Sky Italia offers a new direction for Italian consumers to access broadband content, and may serve as a model for other operators in Europe in 2007. Telecom Italia’s IPTV service Alice Home TV serviced more than 100 areas by the end of 2006, providing a considerable boost for content suppliers.
