The sale of the government’s 60 per cent stake in Maltacom to Dubai-based Tecom Investments for e220 million or Lm95 million opens a new chapter for the company and the telecommunications sector in Malta.
The deal, which is expected to be signed today, will see Tecom investing Lm30 million in new state-of-the-art technology in the first three years. The new shareholder has also agreed not to de-list the company or increase its shareholding before 2009 and the good news for Maltacom’s staff is that Tecom will not impose any redundancies on the company’s employees.
The deal between the government and Tecom basically safeguards much that Maltacom achieved in the past and ensures a smooth transition for the employees. But what is more important is the fact that the deal will now put Maltacom in a much better position to face the challenges of a market that changes year after year. Tecom not only has the know-how to do as much but it also has the financial clout.
The benefits of this deal, however, go beyond the stability of Maltacom as a telecoms company. Maltacom, as from today, will become part of a much wider telecommunications network that extends from Dubai to Tunisia. The deal opens up new markets and new opportunities for the company. Strategically, Maltacom is now in an excellent position to start tapping the potential that exists in north Africa and to turn the company into a “hub” for data traffic between the African continent and Europe.
Although Investments, Industry and IT Minister Austin Gatt said the agreement with Tecom was not linked to the other agreement signed with them to develop SmartCity@Malta, there are obvious benefits. Maltacom will be in an excellent position to provide the necessary infrastructure for SmartCity.
The injection of Lm30 million in new technology over three years is certainly geared to bring Maltacom’s infrastructure up to date but more importantly, allow it to be in a position to offer any service that will be required. Certainly, as the lead developer of SmartCity, the purchase of the government’s 60 per cent stake in Maltacom can only strengthen its position.
Hopefully, Tecom’s presence in Malta will also result in a number of benefits for Maltacom’s subscribers and IT users in Malta. The growth potential that the company has should translate into new products, greater availability of bandwidth locally, cheaper prices and more competition. According to the agreement, Tecom Investments is committed to increase the data bandwidth between Malta and Italy, to enter the DDTV market, offer interactive TV, enhance its VOIP products and to enter new services such as the Wi-Max and Quadruple Play networks.
It is encouraging to note that Maltacom will also be offering 50 placements a year to students who are undergoing ICT training. The potential that exists for growth within the IT sector is enormous and not only because SmartCity will be employing around 3,000 IT professionals over seven years. This raises another important issue: the challenge to meet the human resources requirements that IT companies will need in the future.
Today, more and more people are realising the importance of having a basic understanding of IT. Courses like the European Computer Driver’s Licence (ECDL) ensure that employees are IT savvy. University courses, such as the Masters in Information Technology, aimed at those with no formal computer training, are extremely important. Just as important are the courses provided by the Malta College for Arts, Science and Technology (MCAST), which also provides industry-specific skills in IT. The various IT academies are also contributing to the build-up of an IT skills base in Malta.
The IT sector is proving to be one of the driving forces behind a successful economy. The government has realised the potential and has adapted its strategy accordingly. What is important is that the momentum is maintained.