Throughout these years, thanks to developments in the electronic communications market Malta has experienced a revolutionary change. Technology convergence has not only changed and improved the way in which a business can operate, but also improved the quality of life through the resulting added value.
These improvements are not only brought about as a result of the market developments. I strongly believe that the changes were stimulated by our lasting commitment towards the creation of a competitive market together with effective regulatory developments.
Over the past years, the government has always brought forth the idea of sustained communications development. It is nowadays recognised by one and all that this sustained development is a fundamental contributor to economic growth. Access to mobile services, the increased take-up of internet and broadband subscriptions are only a few of the developments that took place over the past five years.
I still remember the discussion that took place in Parliament and outside when we were proposing the national plan for the liberalisation of the telecommunications sector. Then, many were sceptical about those proposals. However, there was no way change could be stopped.
The high interest among existing incumbents and prospective investors to operate broadband wireless access networks, the issuing of two digital terrestrial television licences, besides the introduction of other services, and the take up of VoIP by businesses and individuals alike are all examples of the remarkable developments within this sector which were brought about in recent years.
The first quarter of this year has again witnessed significant improvements. The overall financial performance of the market, the increasing impact of the sector on the local economy operator turnover, subscriber penetration in various services, the introduction of new services and competitive tariffs are all a result of a rapid growing and fast moving communications revolution.
We have not only revolutionised the way we think and perform but also the way we communicate, interact and operate our businesses, making communications an indispensable tool for our own success. Our domestic achievements have in fact earned us top ratings among the 25 European Union Member states.
Mobile telephony access is probably the best example of such developments and achievements. We are experiencing a continued upward growth within the market with a penetration rate reaching approximately 78.5 per cent of the population comparing favourably with the rest of Europe. Latest official figures translate into over 315,000 subscriptions – with an increase of approximately 7,000 from December last year.
Other developments include third generation mobile telephony whereby the Malta Communications Authority will shortly be issuing licences for 3G mobile network operators. This will provide new and enhanced communication services through higher voice and data transmission rates and converging several innovative services.
Another very encouraging development within the electronic communications sector is the internet, particularly the increasing broadband penetration by both commercial entities and home users.
This telecommunications revolution has always been the government’s vision. Besides the government, the various service providers, who have placed great emphasis on the importance of IT literacy and internet use, also play a key role in this development. The results of this consolidated effort are evident with a level of broadband subscribers reaching nearly 38,000, a staggering increase of nearly 10 per cent in the first quarter of 2005.
The introduction of broadband wireless access and digital terrestrial television (DTTV) are two other significant milestones.
During the past week alone, we have seen major developments relevant to digital television. Two operators have been assigned access to rights of use of radio frequencies in the UHF band for the development and implementation of digital transmission in Malta. This will further reinforce the liberalisation process of the market. Besides that, however, the new service will also provide a wider choice for consumers. After all, through such developments it is ourselves, the consumers, who stand to benefit in being exposed to a larger market, growing opportunities, a wider choice and a competitive market.
As far as communications technologies are concerned, the telephone has been around since 1876. The internet has also been around for some time but it wasn’t until recently that the ability to merge the two caught on.
Over the past years, we have witnessed the growth of VoIP and the advancements in technology to provide traditional circuit switched communications using the internet and private IP networks. Voice over IP is gaining popularity as large investments made in networking technology brought about by the introduction of the internet have led many organisations to consider the advantages of combining their voice and data networks. By utilising existing infrastructures, the migration of voice onto a common network raises hopes of increased efficiencies and reduced expenditures.
Initially, the roadblocks to adopting VoIP were laden with concern about whether the technology would work as well as traditional telephony. The problems that materialised initially frustrated vendors and consumers alike. Today we see many of these fundamental issues fade away as VoIP technology becomes more sophisticated, growing into a viable solution.
Like any new technology, the introduction of VOIP was not immediately an impeccable technology, however hitches have been dealt with effectively. One issue which is currently stirring debate is whether the use of VOIP is totally secure. The ability to ensure the confidentiality, integrity and availability of data and voice communications on a common network has important business impacts as well as technical solutions.
In this context, one might ask how do you take on VoIP and continue to sleep at night without concern for security? The most direct method is to ask yourself, “Is our data network secure? Do we practice good security management?” Applying security patches and updates regularly, monitoring logs and activity, training personnel on the importance of security, performing security reviews during system and application development, change controls, virus management, access controls and incident response capabilities are some of the basics of a sound security policy. Having those elements in place provides a firm foundation on which to implement VoIP security measures.
I believe that each and every technological system has both its advantages and disadvantages and the advent of VoIP does not mean that traditional telecom companies are doomed. I believe that there is a niche for all technologies to thrive and provide the right service for the right customer.
Nevertheless, one fact seems unmistakable – that is, VoIP is well on its way to mainstream acceptance and in the process, threats and vulnerabilities from each environment will combine to present formidable challenges to the success of the technical solution. By employing accepted security best practices, managing technology and ensuring a comprehensive approach to address the unique attributes of VoIP security, any organisation is well positioned to fully realise the financial and business advantages VoIP offers.
This area of the market has seen exceptional growth both locally and internationally in the past year with clear signs that this growth will continue to increase. In Malta, during the first quarter of this year alone, the use of VoIP reached around seven million minutes; an increase of around 2.3 million minutes over the same period last year. Moreover, a dramatic increase of 47 per cent has been experienced in international traffic since the introduction of VoIP
Technology is an ever-changing world and communications is part of it. We have to continuously be alert to international developments and ensure that the right environment exists to encourage the adoption and transition of new technologies to enable the maximum beneficial impact both economically and socially.
One point which could also, perhaps be discussed in some detail concerns the regulatory framework. Organisations such as MCA have the duty of ensuring a level playing field for the various technologies that are available. Very often this is not any easy job to be performed, especially in a market like ours. So far, I believe we have succeeded quite well in this duty.
Censu Galea is Competitiveness and Communications Minister