The MCA’s decision on Maltacom’s proposal can be summarised as follows:

• Reduction in international tariffs (see table on page 4).

• Increases in annual rental fees from Lm25.92 to Lm30.78 (including VAT) for residential subscribers and from Lm52 to Lm68 for business subscribers.

• Maltacom’s proposals for an adjustment in peak and off-peak local call charges for both business and residential subscribers were not approved. Instead, night tariffs – calls between 6pm and 6am – will be charged at 5.39c for every 30-minute pulse (previously charged for every call, regardless of duration) for residential subscribers (including VAT) and 5c for every 30-minute pulse (excluding VAT) for business subscribers.

• Maltacom’s proposal for VoIP per minute call charging and a Lm10,000 annual rental was not approved.

• Changes to ISDN tariffs is to be considered as a separate tariff application. • The proposal for the removal of free pulses was not approved. Instead, there will be a removal of 60 per cent of free pulses for residential subscribers. These free pulses will only apply to “night” local call charges – calls that take place between 6pm and 6am – and cannot be used for VoIP/internet access.

• Maltacom’s proposals for the social rebate to be capped at 5,000 subscribers has been approved.

In addition, the MCA decision states that the new tariffs can only be implemented after a 30-day notice period to subscribers has been given. Additionally, the MCA will start a process to review Maltacom’s efficiency and will also monitor the implementation of an RPI-X price cap mechanism later on in the year.

In a statement, the authority said it took into consideration all the cost accounting and operational information provided by Maltacom plc as well as the various representations made by a number of interested parties during the consultative process leading to this decision.

MCA chairman Joseph Tabone said: “The MCA’s overall approach towards tariff re-balancing has been to ensure that any upward tariff adjustments to local retail tariffs is based on the principle of cost orientation and matched by reductions in international tariffs.”

“The MCA also carried out a detailed analysis of the impact of the proposed tariffs on the various residential and business subscriber profiles in order to measure their potential financial impact.”

Maltacom’s application to revise the tariff was submitted on 12 November 2003. The decision and the new tariffs may be seen on the authority’s website: http://www. mca.org.mt