Maltacom : a case study of a monopolistic state utility in a liberalising environment

Abstract

Modern society is characterised by rapid technological change and an increased importance of services based on Information Technology. The telecommunications industry is at the heart of this societal transition and most states all over the world are seeking to liberalise this industry to achieve the benefits of an open competitive market. This study attempts to analyse the trends in the USA and in Europe and observe Malta's compliance to these trends. After a general overview presented in chapter one, chapter two identifies the general trends in the American and European telecommunications sectors by reference to a number of relevant publications concerning the topic of telecommunications. In the third chapter the study surveys the situation in the Maltese telecommunications environment. The information presented is the result of a number of interviews held with senior officials within the major competing organisations of the market. Chapter four presents the case-study of Maltacom plc by attempting to highlight the reactions of the former monopolistic state utility to the changes in the Maltese telecommunications environment. The fifth and final chapter concludes that the Maltese telecommunications sector is moving in the direction of market liberalisation and the convergence of broadcasting media, information technology and telecommunication networks. The developments in these areas are leading to an explosion of new services and a powerful drive towards the attainment of high service quality. A further conclusion is that the Maltese telecommunications industry appears to be following the same path towards full market liberalisation that has characterised this trend in North America and Europe. This is generating substantial investment in employee development and training and in the creation of the advanced infrastructure necessary to survive in the dynamic and competitive Maltese telecommunications environment as well as the prospective European market.