Policy Statement of Malta
H.E. Mr. Censu Galea

Mr. Chairman,
Mr. Secretary-General,
Honorable Ministers,
Distinguished Guests,
Ladies and Gentlemen,

It is indeed a privilege to have the opportunity to address the ITU Plenipotentiary Conference for the second consecutive time.

As a European country located at the very centre of the Mediterranean sea, Malta has established its role as a hub in the Euro-Mediterranean region not merely in Telecommunications but also in other sectors including transport and services.

In a sustained effort over a number of years my Government has followed a consistent policy and committed resources to provide Malta with a state-of-the-art telecommunications system and a restructured and modernized infrastructure all of which are essential to assuring Malta's future as a dynamic Euro-Mediterranean hub linked to all parts of the world.

Given that Malta is geographically proximate to one of the world's most dynamic zones of technological innovation, Europe, and is also at the centre of one of the world's busiest sea routes, the Mediterranean, Malta is very well placed to play a leading role in the information and communications revolution. This includes offering technology based services in different sectors including tourism and financial services and state-of-the-art research and development facilities for multinational technology firms that are seeking to expand their business in the Euro-Mediterranean area.

Malta is actively seeking membership of the European Union. In the light of this scenario, in 1999, my Government initiated consultations with all stake-holders, with a view to systematically liberalize the telecommunications sector, in a manner based on a balance between liberalization, efficiency and service to the public.

It is therefore incumbent upon my Ministry to provide for a pro-competitive and friendly regulatory framework encouraging competition with appropriate incentives for investment by all stakeholders in the market, thus enhancing Malta's economic growth.

In this context on 1st August 2000, Government enacted the Malta Communications Authority Act. This new legislation provided for the setting up of an independent Communications Regulator and also laid down a strategic national plan for the liberalization of the telecommunications market. This plan provided a framework for the orderly introduction of competition in the provision of telecommunication services.

The monopoly of mobile telephony ended in September 2000 when MobIsle Communications Limited, a subsidiary of Maltacom plc, the incumbent fixed telecommunications operator, was granted a licence to provide mobile communication services. The cable television market was liberalized in June 2001, while fixed telephony services and international gateway will be liberalized on 1 January 2003.

Since liberalization took place the acceleration of telecommunications growth rates was high, notably in key market segments such as mobile telephony and Internet. Over a population of 385,000, in 1998, the number of mobile telephone subscribers was 22,531 and that of Internet users was 25,000. By end March 2002, the number of mobile telephone subscribers soared to 253,600, reaching a penetration rate of 64%. During 2001 the number of Internet users increased to 25.4 % of the total population.

In this new liberalized scenario, all operators recognized new opportunities to expand their operations and to continue as major players in this economic sector.

I hardly need to emphasise that Information and Communication Technology (ICT) is probably the most powerful tool for social and economic change. Thus, we must use this tool in such a way that people can improve their economic, social and cultural well-being.

Hence, ITU's theme for this year's World Telecommunications Day - ICT for all: empowering people to cross the Digital Divide. My Government, on its part is committed to cross this Digital Divide by promoting access to and use of information and communication technologies through the implementation of the e-Government initiative.

Malta and the ITU have had a mutually beneficial relationship, which has spanned thirty-six years. My Government will continue to support ITU in its mission to seek appropriate ways to further develop telecommunications worldwide. This is manifested through the many different roles we have undertaken such as:

• our role as Lead country on Economic and Financial aspects of Telecommunications within the European telecommunications development project;
• our tangible contributions to the development of the feasibility study of the Regional Transmission Backbone for Eastern Europe adopted at the Prague regional Conference in 1991;
• our input as a Member and Vice Chair of the Telecommunication Development Advisory Board since its inception in 1992;
• our initiative to promote Gender issues in the ITU;
• our hosting of the World Telecommunication Development conference in Malta in 1998.

The ITU has always been supportive to Malta's requests. It was in 1992 that Malta became one of the first countries to completely digitalise its network, with the invaluable assistance of the ITU. This achievement earned our country the privilege to be singled out as the 'role model' for rapid development in Telecommunications at the first World Telecommunication Development Conference, in 1994.

The continuous co-operation between Malta and the ITU is also manifested by the setting up of the first Interregional node of the ITU Global Telecommunications University and Training College, which was inaugurated in Malta in March 2001. This project offers the opportunity of a high quality education in telecommunications to anyone, anywhere, and in particular to developing countries. The College is a virtual university, based on distance-learning principles and demonstrates how the Global information infrastructure can be used for educational and professional training.

I conclude by auguring that this Conference will be a success. I am confident that the outcome of this Conference should reinforce the role of ITU in the leadership of telecommunications development at a global level.

Thank you Mr. Chairman.