  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  1
CHAPTER 399
TELECOMMUNICATIONS (REGULATION) ACT
To regulate Telecommunications.
31st December, 1997
2nd January, 1998
ACT XXXIII of 1997, as amended by Acts XIX of 1998, XVIII of 2000, VI
of 2001 and XXVII of 2002.
PART I
PRELIMINARY
Short title.
(Regulation) Act.
Interpretation.
Amended by:
XIX. 1998.3;
XVIII. 2000. 31.
2. In this Act, and in regulations made thereunder, unless the
context otherwise requires - 
"apparatus" means any equipment, instrument or other apparatus
for use in the provision, or in the reception, of telecommunication
services, and includes any fittings thereto or accessories thereof;
"authorisation" includes any licence or permit issued under this
Act to install or operate a telecommunications system or to provide
a telecommunications service and includes general authorisations
and individual licences as defined in article 6; 
"authorised provider" means any person who holds a valid
licence or permit to operate a telecommunications system or
provide a telecommunications service under this Act, or is
registered under this Act as a person authorised as aforesaid;
"Board" means the Telecommunications Appeals Board
established by article 34;
"commercial activities connected with telecommunications"
means the provision of telecommunications services or the supply
or export of telecommunications apparatus or the production or
acquisition of such apparatus for supply or export; 
"competent authority" or "Authority" means the person or body
designated as the competent authority in article 3 and to the extent
of the authority given includes any person authorised by it for any
purpose; 
"convey" includes transmit and transport and "conveyance" shall
be construed accordingly;
Cap. 250.
the Telemalta Corporation Act * ;
"electro-magnetic system" means any system whereby messages
or sound or light or visual images may be transmitted by wire
activated by electricity or by radio waves or by any other electro-
magnetic energy or by optical energy or by a combination of any
*Repealed by this Act.
  2  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
two or more of such systems;
"exclusive privilege" means the privilege whether referred to as a
right or authority or otherwise granted to one or more persons
through any legal, contractual, regulatory or administrative
instrument reserving to such person or persons the privilege to
provide a service, to operate a system or to undertake an activity to
the exclusion of others; 
"frequency" means the number of complete cycles per second of
a wave of electromagnetic energy;
"granted" or "issued", in respect of an authorisation, includes
deemed to be granted or issued;
"interconnection" means the physical and logical linking of
telecommunications systems used by the same or a different
organisation in order to allow users of one organisation to
communicate with users of the same or another organisation or to
access services provided by another organisation. Such services
may be provided by the parties involved or by other parties who
have access to the system; 
"message" includes communication;
"Minister" means the Minister responsible for telecommuni-
cations, and includes any other Minister delegated by him for that
purpose;
"network termination point" means all physical connections and
their technical access specifications which form part of the public
telecommunications system and are necessary for access to and
efficient communication through that public system; 
"number portability" means a facility whereby subscribers who
so request can retain their number on a telephony system
independent of the organisation providing the service at the
network termination point of the subscriber; 
"open network provisions" means the harmonised conditions
which concern the open and efficient access to public
telecommunications systems and public telecommunications
services and the efficient use of those systems and services.
Without prejudice to their application on a case by case basis, open
network provisions may include conditions with regard to - 
(i) technical interfaces including the definition and
implementation of network termination points; 
(ii) usage conditions including access to
frequencies; 
(iii) tariff principles;
"person" includes any body corporate and any body of persons
whether or not it has a legal personality distinct from that of its
members;
 "prescribed" means prescribed by regulations made under this
Act;
"private telecommunications system" means a telecom-
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  3
munications system utilised by an authorised provider to provide
private telecommunications services only;
"private telecommunications service" means a telecommuni-
cation service provided by an authorised provider for its own use
over a telecommunications system;
"public land" includes any land which is used or intended for use
by the general public, as well as the territorial waters of Malta;
"public telecommunications system" means a public
telecommunications infrastructure which permits the conveyance
of signals between defined network termination points by wire, by
microwave, by optical means or by other electromagnetic means; 
"public telecommunications service" means a service the supply
of which has been entrusted to one or more telecommunications
organisations; 
"publicly available telecommunications service" means a
telecommunications service available to the public;
"publicity available voice telephony services" means a fixed
telephony service whether operated by wireless or otherwise or a
mobile telephony service, or both, available to the public;
"a dominant market position" shall have the same meaning as
may be prescribed by regulations made under this Act; 
"subscriber" means a person who is a party to a contract with a
provider of publicly available telecommunications services for the
supply of such services; 
"systemless service provider" means a person who provides
publicly available telecommunications services but who does not
operate the telecommunications system by means of which such
services are provided;
"telecommunications" means the emission, transmission, routing
or reception through electric, magnetic, electromagnetic, electro-
chemical or electro-mechanical energy of:
(i)  speech, music and other sounds,
(ii) visual images;
(iii) signals serving for the impartation (whether as
between persons and persons, things and things,
or persons and things) of any matter otherwise
than in the form of sounds or visual images; or 
(iv) signals serving for the actuation or control of
machinery or apparatus;
"telecommunications apparatus" or "apparatus" means apparatus
construed or adapted for use in transmitting or receiving anything
which is to be or has been conveyed over a telecommunications
system;
"telecommunications service" means any one or more of the
following:
( a ) a service consisting in the conveyance by means of a
telecommunications system, of any form of
  4  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
telecommunications, without regard to the content of
the messages transmitted;
( b ) a directory information service consisting in the
provision by means of a telecommunications system of
directory information for the purpose of facilitating
the use of a service falling within paragraph ( a ) of this
definition and provided by means of that system;
Cap. 350.
( c ) a service consisting in the installation, maintenance,
operation, adjustment, repair, alteration, moving,
removal or replacement of a telecommunications
system including cable television, video on demand
and interactive services, but excluding broadcasting as
defined in the Broadcasting Act;
"telecommunications system" means a system for the conveyance
through the agency of electric, magnetic, electromagnetic, electro-
chemical or electro-mechanical energy, of - 
(i) speech, music and other sounds;
(ii) visual images;
(iii) signals serving for the impartation (whether as
between persons and persons, things and things
or persons and things) of any matter otherwise
than in the form of sounds or visual images; or
(iv) signals serving for the actuation or control of
machinery or apparatus;
"telecommunications transport provider" means a person who
provides a service consisting in the conveyance by means of a
telecommunications system of publicly available
telecommunications services;
"telegraphy" means the transmission of messages from one place
to another by means of an electromagnetic system, but does not
include spoken messages;
"telephony" means the commercial provision for the public of
direct transport of real-time speech through the public switches
network or networks such that any user can use equipment
connected to a network termination point to communicate with
another user of equipment connected to another termination point; 
"transport" includes conveyance and transmission;
"telex" means a system of telegraphy where the message is
transmitted directly between the sender and recipient;
"transmission" includes emission, switching and reception;
"universal service obligation" means an obligation to provide
telecommunications services that are designated by the Authority
as basic services for social reasons at an affordable price or free of
charge;
"user" means persons using or requesting publicly available
telecommunications services.
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  5
PART II
REGULATION OF TELECOMMUNICATIONS
1. Competent Authority to regulate Telecommunications
Appointment of 
Authority.
Substituted by:
XVIII. 2000.31.
3. (1) The Minister shall by order in the Gazette nominate a
person or body to be the competent authority for the purposes of
this Act to carry out the functions of the competent authority under
this Act and to perform such other functions as the Minister may
consider appropriate in relation to the operation of this Act. Such
person or body shall be nominated for such period as the Minister
may determine and the Minister shall have the power at any time to
prolong, renew or terminate such nomination by order in the
Gazette.
(2) The power of the Minister to prolong, renew or terminate a
nomination made in pursuance of subarticle (1) shall cease to exist
from such time as may be specified by the Minister in an order in
the Gazette wherein the Malta Communications Authority is
nominated to act as the competent authority under this Act on a
permanent basis.
Functions of the 
Authority.
Substituted by:
XVIII. 2000.31.
4. (1) It shall be the duty of the Authority to exercise the
functions assigned to it under this Act in a manner which it
considers to be conducive -
( a ) to the regulation of the telecommunications sector on
the basis of the fundamental principles of this Act
including the separation of regulatory and operational
functions, fair competition, transparency, non-
discrimination, open networks, consumer protection,
universal service, public service values and respect for
fundamental human rights;
( b ) to secure that there are provided in Malta, save in so
far as the provision thereof is impracticable, such
telecommunications services as satisfy all reasonable
demands for them including in particular emergency
services, public call services, directory information
services, and maritime services; and 
( c ) without prejudice to the generality of paragraph ( a )
above, to secure that any person by whom any such
services are to be provided is able to finance the
provision of those services. 
(2) Subject to subarticle (1) above, the Authority shall have a
duty to exercise the functions assigned or transferred to it under
this Act in a manner which it considers to be best conducive - 
( a ) to promote the interests of consumers, purchasers and
other users in Malta (including in particular those who
are disabled or of pensionable age) in respect of the
prices charged for, and the quality and variety of,
telecommunications services provided and
telecommunications apparatus supplied; 
( b ) to promote open networks and effective competition
  6  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
between persons engaged in commercial activities
connected with telecommunications in Malta; 
( c ) to promote efficiency and economy on the part of such
persons;
( d ) to promote research into and the development and use
of new techniques by such persons; 
( e ) to encourage major users of telecommunications
services whose places of business are outside Malta to
establish places of business in Malta; 
( f ) to promote the provision of international transit
services by persons providing telecommunications
services in Malta;
( g ) to enable persons providing telecommunications
services in Malta to compete effectively in the
provision of such services outside Malta; 
( h ) to encourage persons producing telecommunications
apparatus to set up production facilities in Malta and
to enable such persons to compete effectively in the
supply of such apparatus both inside and outside
Malta. 
(3) It shall be the duty of the Authority to carry out the
functions prescribed in this Act and to ensure compliance with the
provisions of this Act, and, without prejudice to the generality of
the foregoing, to ensure that persons operating telecommunications
systems or providing telecommunications services in Malta comply
with this Act, with regulations and directives issued under this Act
and with the conditions of their licences. 
(4) The Authority may make directives as may be required for
the carrying into effect of any of the provisions of this Act and it
may also amend or revoke such directives.
(5) Directives issued by the Authority in pursuance of this
article and any amendment or revocation thereof shall be
communicated by the Authority to persons operating
telecommunications systems or providing telecommunications
services in Malta and shall also be made public by publication in
the Gazette. 
(6) The Authority shall also have such other functions,
responsibilities and powers as are set out in this Act or as the
Minister responsible for telecommunications may by order
prescribe or as may be assigned to it by or under any other law.
 2.Authorisation for telecommunications 
systems or services
Requirement of 
authorisation.
Amended by:
XIX. 1998.3;
XVIII. 2000.31.
5. (1) No person shall install or operate a telecommunications
system or provide a telecommunications service in Malta unless he
is an authorised provider.
(2) An authorisation granted to a person under this Act shall
not relieve such person from the requirement of any other licence,
permit or other authorisation, or from any obligation arising from
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  7
any other law:
Cap. 49.
Provided that, to the extent that it is necessary for the
purpose of any installation, operation or provision as aforesaid by
an authorised provider, an authorisation granted under this Act may
include a licence issued under article 3 of the Wireless Telegraphy
Ordinance, and such licence shall be deemed to have been issued
under this Act and be regulated accordingly.
(3) The provisions of this article shall not be contravened by
the running of any telecommunications system listed as being
exempt from the said provisions in regulations which the Minister
may from time to time prescribe.
Licences and 
general 
authorisations.
Added by:
XVIII. 2000.31.
6. (1) A licence to operate a telecommunications system or to
provide a telecommunications service may be granted -
(i) by the Authority; or
(ii) in accordance with a general authorisation
issued by the Authority and subject to
verification by the Authority that the conditions
of the general authorisation have been satisfied,
for the operation of any telecommunications system as is specified
in the licence or is of a description so specified. 
(2) A licence granted under this article shall be in writing and,
unless previously revoked in accordance with any term therein
contained, shall continue in force for such period as may be
specified in or determined by or under the licence. 
(3) A licence granted under this Act may be granted either in
the form of a general authorisation to all persons or to persons of a
class or in the form of an individual licence to a particular person.
(4) A licence granted under this article may authorise - 
( a ) the connection to any telecommunications system to
which the licence relates of -
(i) any other telecommunications system specified
in the licence or of a description so specified;
and 
(ii) any apparatus so specified or of a description so
specified; and 
( b ) the provision by means of any telecommunications
system to which the licence relates of any
telecommunications services specified in the licence
or of a description so specified. 
(5)  A licence granted under this Act may include -
( a ) such conditions (whether relating to the
telecommunications system to which the licence
relates or otherwise) as appear to the Authority to be
requisite or expedient having regard to the duties of
the Authority and to the international obligations of
Malta; 
( b ) conditions requiring the payment to the Authority of a
  8  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
fee on the grant of the licence or of payments during
the currency of the licence or both, which fee or
payments shall be of such amount or amounts (which
may also be determined by reference to the licensee’s
income, sales or turnover) as may be determined in the
licence;
( c ) in the case of a licence granted to all persons or to
persons of a class, conditions requiring any person or
any person who falls within the class of persons to
which the licence relates, to notify the Authority of his
intention to run a telecommunications system under
that licence; 
( d ) conditions requiring the licensee to comply with any
directions given by the Authority as to matters stated
in the licence; 
( e ) conditions requiring the licensee to do or not to do
such things as are specified in the licence; 
( f ) conditions obliging the licensee to refer for
determination by the Authority such questions arising
under the licence as are specified in the licence; 
( g )  such other conditions as may be prescribed. 
Temporary 
licences.
Added by:
XVIII. 2000.31.
7. (1) Where the Authority receives an application for a
licence to operate a telecommunications system which cannot be
operated under the terms of a current licence which has been
granted to persons of a class it shall, subject to any time limits
specified for the grant of licences under article 14 - 
( a ) either grant a temporary licence containing such
conditions as the Authority considers appropriate to
enable the applicant to commence operating such a
system; or 
( b )  reject the application. 
(2) Where the Authority grants a temporary licence under
subarticle (1) it shall as soon as possible either replace such a
licence with another licence granted under this article containing
such conditions as it considers appropriate or revoke it. 
Procedures for 
general 
authorisations.
Added by:
XVIII. 2000.31.
8. (1) A person who complies with the applicable conditions
under a general authorisation may operate the telecommunications
systems and provide the telecommunications services covered by
the general authorisation. 
(2) Before providing the telecommunications service or
operating the telecommunications system covered by a general
authorisation a person enjoying a general authorisation shall notify
the Authority of his intention to do so and shall communicate to the
Authority the prescribed information relating to the system or
service concerned which is necessary for the purpose of ensuring
compliance with the conditions of the general authorisation.
(3) The Authority may require a person as referred to in
subarticle (1) to wait up to four weeks after formal receipt by the
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  9
Authority of all the prescribed information required before starting
to provide the services or to operate the systems covered by the
general authorisation. 
(4) Fees imposed on persons as part of the authorisation
procedures under a general authorisation shall only seek to cover
the administrative costs incurred in the issue, management, control
and enforcement of the applicable general authorisation scheme: 
Provided that nothing in this subarticle shall be deemed to
exonerate any person availing himself of a general authorisation
from making financial contributions to the provision of universal
services in accordance with any funding mechanism for universal
services as may be prescribed. 
Individual 
licences.
Added by:
XVIII. 2000. 31.
9. (1) Individual licences may be issued for the following
purposes only: 
( a ) to allow the licensee access to radio frequencies and
numbers; 
( b ) to give the licensee particular rights with regard to
public or private land; 
( c ) to impose obligations and requirements on the licensee
relating to the mandatory provision of publicly
available telecommunications services or public
telecommunications systems, including obligations
which require the licensee to provide universal
services and other obligations resulting from open
network provisions prescribed in any law or
regulation; 
( d ) To impose specific obligations in accordance with
competition rules or international obligations where
the licensee has a dominant market position in relation
to the provision of telecommunications systems or
publicly available telecommunications services. 
(2) Notwithstanding the provisions of subarticle (1) above the
provision of publicly available voice telephony services, the
establishment and provision of public telecommunications systems
as well as other systems involving the use of radio frequencies may
be made subject to individual licences as may be prescribed. 
(3) The Minister may by regulations made after consultation
with the Authority limit the number of individual licences for any
category of telecommunications services or systems to the extent
that he may deem necessary to ensure the efficient use of radio
frequencies or for the time that he may deem necessary to make
available sufficient numbers.
Non-compliance 
with conditions of 
general 
authorisations.
Added by:
XVIII. 2000.31.
10. (1) Where a person enjoying a general authorisation does
not comply with a condition attached to a general authorisation the
Authority may inform that person that he is not entitled to avail
himself of the general authorisation and it may impose on that
person in a proportionate manner specific measures aimed at
ensuring compliance by him with the conditions of the general
authorisation. 
  10  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
(2) The Authority shall at the same time give such person as
referred to in subarticle (1) a reasonable opportunity to state his
views on the application of the conditions and to remedy any
breaches within one month starting from the intervention of the
Authority. 
(3) If the person as referred to in subarticle (1) above remedies
the breaches, the Authority shall, within two months of its initial
intervention, revoke or modify its decision as it may consider
appropriate and it shall give the reasons for its decision. 
(4) If the person as referred to in subarticle (1) above does not
remedy the breaches the Authority shall, within two months of its
initial intervention, confirm its decision and give the reasons for its
decision. The decision of the Authority shall be communicated
within one week of its adoption to the person concerned. 
(5) Decisions of the Authority taken in pursuance of subarticles
(3) or (4) shall be appealable to the Telecommunications Appeals
Board. 
Non-compliance 
with conditions of 
individual licences.
Added by:
XVIII. 2000.31.
11. (1) Where the beneficiary of an individual licence does
not comply with a condition attached to the licence, the Authority
may withdraw, amend or suspend the individual licence or impose
in a proportionate manner, specific measures aimed at ensuring
compliance. 
(2) The Authority shall at the same time give the beneficiary
concerned a reasonable opportunity to state his views on the
application of the condition and, except in the case of repeated
breaches by the said beneficiary (in which case the Authority can
immediately take the appropriate measures), to remedy any
breaches within one month commencing from the date of the
intervention of the Authority. 
(3) If the beneficiary concerned remedies the breaches the
Authority shall within two months from its initial intervention
revoke or modify its decision as it deems appropriate and it shall
give its reasons for its decision. 
(4) If the beneficiary concerned does not remedy the breaches
the Authority shall, within two months from its initial intervention,
confirm its decision and give the reasons for its decision. The
decision shall be communicated within one week from its adoption
to the beneficiary concerned.
(5) In the event of harmful interference between a
telecommunications system using radio frequencies and other
technical systems the Authority may take immediate action,
including but not limited to the giving of directives, to remedy the
problem. In such a case the licensee concerned shall thereafter be
given a reasonable opportunity to state its views and to propose
remedies to the harmful interference. 
(6) Decisions of the Authority taken in pursuance of subarticles
(3) or (4) shall be appealable to the Telecommunications Appeals
Board.
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  11
Transferability of 
authorisation.
Amended by:
XVIII. 2000.31.
12. (1) No licence, permit or other authorisation whether it is
an individual licence or an entitlement to act under a general
authorisation may be transferred or assigned by the authorised
provider to another person without the prior consent in writing of
the Authority.
(2) The Authority may refuse its consent under this article for a
good reason only and such refusal shall be communicated in
writing.
(3) Where the authorised provider is a body corporate or
another body of persons, a change in the control of the ownership
or management of that body shall be equivalent to the transfer of
the authorisation, and shall be subject to the prior consent of the
Authority as aforesaid.
Application for 
authorisation.
Amended by:
XVIII. 2000.31;
XXVII. 2002.58.
13. (1) Any person seeking an authorisation by means of an
individual authorisation shall apply to the Authority on such form
and in such manner as may be prescribed, or as may be provided or
required by the Authority, and shall provide to the Authority all
such information as may be prescribed and as the Authority may
reasonably require to enable it to assess the application.
(2) The application shall in particular specify the telecommuni-
cations system or service or services for which the application is
made and shall include such information as maybe prescribed or, in
the absence of such prescription, such information as is sufficient
to demonstrate that the applicant fulfils the conditions for the grant
of the authorisation.
(3) Upon receipt of an application as aforesaid the Authority
shall cause the fact that an application has been made to be
published in the Gazette, giving such details as it may deem
appropriate to enable any person wishing to make representations
to object to the application or make any other submission.
(4) The Authority shall consider the application after
conducting the necessary investigations and considering any
representations or submissions made in respect thereof, and may
for this purpose require from any person any further information it
may deem necessary.
(5) Anything to be done under this article shall be done in such
form and manner and within such time as may be prescribed.
Grant or refusal of 
authorisation.
Amended by:
XVIII. 2000.31;
XXVII. 2002.58.
14. (1) The Authority shall complete its investigations within a
reasonable time or within such time as may be prescribed and shall
thereupon make and forward a report to the Minister which shall
include a recommendation whether the authorisation applied for is
to be granted or not.
(2) If the recommendation is that an authorisation is to be
granted, and the Minister agrees with the recommendation, the
Authority shall approve the application and grant the licence or
permit under its signature.
(3) If the Authority is of the opinion that the application should
be refused for any of the reasons set out in article 15 it shall inform
  12  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
the Minister accordingly and refuse the authorisation.
(4) If the Authority recommends that the application should be
approved but the Minister disagrees with such recommendation on
any of the grounds indicated in article 15, the application shall be
refused.
(5) Decisions of the Authority and of the Minister made in
pursuance of this article shall include reasons for the decision and
shall be published in the Gazette. 
(6) The Authority shall inform the applicant of its decision to
grant or refuse an authorisation within six weeks from the date
when it receives the application in a complete state and drawn up in
a manner that complies with the provisions of this Act:
Provided that such period may be extended to up to four
months in the following cases: 
(i) where there is disagreement between the
decision of the Authority and that of the
Minister as to whether an authorisation should
be issued; or 
(ii) where an application requires consultation
between the Authority and any Government
department or other authority relating to the use
of frequencies or to the possibility of
interference with other telecommunications
services. 
(7) Where the grant of the authorisation is subject to a
comparative bidding procedure the four month period referred to in
subarticle (6) above shall also apply: 
Provided that in such cases the said four month period may
be extended by a further four months.
(8) The time limits provided for in this article shall be without
prejudice to any applicable international agreements relating to
international frequency and satellite coordination.
Grounds for 
refusal.
Amended by:
XVIII. 2000.31;
XXVII. 2002.58.
15. (1) The Authority may refuse to authorise a person to
install or operate a telecommunications system or to provide a
telecommunications service, if it is of the opinion that the grant of
the authorisation would - 
( a ) be against the public interest, or is inconsistent with
Government policy, and the Minister agrees;
( b ) be inconsistent with the provisions of this Act or of
any other law, or with any international commitment
undertaken or in the process of being undertaken by
Malta;
( c ) pose a danger or nuisance to the public or damage to
any property, or obstruct or interfere with any lawfully
operated telecommunications system or network;
( d ) authorise an applicant applying for an individual
licence, when he does not demonstrate to the Authority
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  13
that he fulfils the conditions for the grant of such a
licence.
(2) The Authority may also refuse to grant the authorisation
applied for if it has grounds to believe that the applicant is not a fit
and proper person to hold the authorisation applied for, or is not in
a position, because of the financial and other specific
circumstances of the applicant, to comply with the provisions of
this Act or of any regulations made thereunder or with the
conditions of the licence or permit if granted.
(3) The Authority shall communicate in writing to the applicant
the decision to refuse an application and it shall set out briefly in
writing the reasons for such a decision.
Appeals for grant 
or refusal.
Amended by:
XVIII. 2000.31.
16. (1) There shall be an appeal to the Telecommunications
Appeals Board, as provided in article 34, from any decision to grant
or refuse an authorisation under the foregoing provisions of this
Act.
(2) Where an authorisation as aforesaid is refused, the right of
appeal shall be competent to the applicant; where an authorisation
is granted the appeal shall be competent to any person who has
made representations in writing to the Authority as provided in
article 13.
(3) The decision to include a condition in a licence shall also
be subject to appeal to the Board.
Special obligations 
of authorised 
providers of public 
telecommunica-
tions system.
Amended by:
XVIII. 2000.31.
17. A person authorised pursuant to article 6 to operate a
public telecommunications system shall, in addition to complying
with the provisions of this Act and of any regulations made
thereunder, as well as with the terms and conditions of the licence,
abide by any directive issued by the Authority for the purpose of -
( a ) ensuring that the capacity, quantity and features of the
system are sufficient for providing and maintaining an
efficient telecommunications system;
( b ) ensuring that the system is sufficient for and
compatible with such international telecommunica-
tions services as the Authority may specify;
( c ) making provision for the security of the system and of
any extension thereof;
(d) ensuring the implementation of open network
provisions.
Special obligations 
of authorised 
providers of public 
telecommunica-
tions service.
Amended by:
XVIII. 2000.31.
18. A person authorised pursuant to article 6 to provide a
public telecommunications service shall -
( a ) make available all such services as may reasonably be
provided to any person wishing to subscribe to such
services;
( b ) ensure that all rates, charges, practices and
classifications are just and reasonable;
( c ) provide such services efficiently, complying with the
standards for quality generally accepted in the
  14  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
industry;
( d ) notify the Authority and publish by notice in the media
when the services are to be interrupted for the
installation or repair or the changing of equipment;
( e ) establish an efficient mechanism for receiving
complaints and repairing failures in its network and in
the services provided;
( f ) comply with the provisions of this Act and of any
regulations made thereunder as well as with the terms
and conditions of the authorisation; and shall abide by
any directives of the Authority as it may be authorised
to issue by or under this Act.
Tariff controls and 
rate mechanisms.
Amended by:
XIX. 1998.3;
XVIII. 2000.31;
VI. 2001.29.
19. (1) Tariffs in respect of telecommunications services shall
be regulated as follows:
(i) in markets or market segments which are, in the
opinion of the Authority, subject to effective
competition, tariffs shall be established by the
operation of the market;
(ii) in markets or market segments which, in the
opinion of the Authority, lack effective
competition, tariffs shall be subject to such
proportionate controls and regulations, which
may also grant power to the Authority to issue
such proportionate and non-discriminatory
directives as it may deem appropriate, as may be
prescribed;
(iii) where no regulations have been issued or are in
force in terms of sub-paragraph (ii) and no order
has been published in the Gazette by the
Authority stating that tariffs in a particular
market or market segment are to be regulated in
accordance with sub-paragraph (i) above or
when no such order is in force, tariffs shall be
regulated in accordance with rate mechanisms in
terms of subarticles (2) to (7);
(iv) where an order has been published by the
Authority in terms of sub-paragraphs (i) and (iii)
above or where regulations are prescribed in
terms of sub-paragraph (ii) above any rate
mechanism in force at the time of the publication
of the said order or of the said regulations shall
cease to have effect, without prejudice to its
validity in respect of any preceding period, with
regard to the market or market segment to which
the order or the regulations refer.
(2) Subject to subarticle (1) there shall be rate mechanisms
allowing for changes in the charges to be made in respect of
telecommunications services and such rate mechanisms shall be
such as may be established by the Authority and published in the
Gazette. Rate mechanisms may be established for such period as
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  15
may be determined by the Authority.
(3) Where a rate has not yet been established, or where an
authorised provider wishes to make a change in an existing rate not
provided for in an existing rate mechanism, an authorised provider
shall submit the rates it proposes to charge in respect of any service
it is authorised to provide to the Authority for its approval.
(4) If the Authority approves the proposed rates, it shall
communicate such approval to the authorised provider, and those
rates shall be the rates the authorised provider may charge.
(5) If the Authority does not approve the proposed rates it shall
so notify the authorised provider setting out the reasons for such
rejection; and the authorised provider may either appeal from such
decision to the Telecommunications Appeals Board, under article
34, or propose other rates acceptable to the Authority:
Provided that if a notice of rejection is not served within
sixty days after their submission, the rates submitted shall be
deemed to have been approved.
(6) An authorised provider of telecommunications services
shall forward to the Authority, and the Authority shall, unless it
rejects any of them, register the terms and conditions, including
approved tariffs, for the provision of such services; and upon
registration, the terms and conditions so registered shall be binding
on the authorised provider and on any person accepting the
provision of such service:
Provided that such terms and conditions, including
approved tariffs, may be changed from time to time, subject to any
approval by the Authority required by this article and to their
registration by the Authority:
Provided further that any rejection of a term or condition by
the Authority as provided in this subarticle shall also be subject to
appeal.
(7) The terms and conditions registered by the Authority under
this article shall be open to inspection by the public during normal
office hours.
(8) A person authorised to provide a telecommunications
service may not engage in any cross-subsidisation with respect to
such services as such person provides in competition with other
authorised providers, or to subsidiaries or affiliated businesses.
Cap. 379.
(9) Where any of the provisions of subarticle (8) is
contravened, such contravention shall be dealt with exclusively by
the Authority irrespective of whether it constitutes unfair trading
for the purposes of the Competition Act. The Authority may
consult the Commission for Fair Trading as to the measures to be
taken in the circumstances; and the authorised provider shall
comply with any directives the Authority may issue on the matter.
(10) The obligations and duties of authorised providers as set
out in this Act shall be without prejudice to any term or condition
contained in the authorisation adding any obligation or duty on the
authorised provider, and any such additional obligation or duty
  16  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
shall have effect as if it were imposed by this Act.
Modifications of 
licences.
Added by:
XVIII. 2000.31.
20. (1) The conditions attached to an authorisation granted
under this Act may be modified by the competent authority as
follows:
( a ) where the competent authority wishes to make a
modification in the conditions of a general
authorisation, it shall publish a notice in the Gazette
indicating the modifications being proposed and
granting a reasonable time to interested parties to
make an objection to the proposed changes;
( b ) where objection is made to any modifications pursuant
to paragraph ( a ) above the competent authority shall
decide whether to make the proposed modifications
after it has duly considered the said objections and it
shall give reasons for its decision; 
( c ) where the competent authority wishes to make
modification in the conditions of an individual licence
it shall: 
(i) either give notice to the holder of the individual
licence stating the modifications which it
proposes to make, setting out their effect, stating
the reasons why it proposes to make such
modifications and specifying the time, not being
less than 28 days from the date of publication of
the notice within which representations or
objections may be made by the holder of the
licence, and seeking the consent of the holder of
the licence; and/or 
(ii) make a reference to the Office for Fair
Competition requiring it to investigate and
report on whether or not any matters specified in
the reference operate or may be expected to
operate against the public interest and, if so,
whether the effects adverse to the public interest
could be prevented by the modification of the
conditions of the licence; 
( d ) where the holder of the individual licence does not
give his consent requested in terms of paragraph ( c )(i)
above it shall not be permissible for the authority to
effect a modification in the individual licence other
than after a reference to the Office for Fair
Competition in terms of paragraph ( c )(ii) above; 
( e ) when the Office for Fair Competition reports on any
matter referred to it under paragraph ( c )(ii), its
conclusions shall be definitive and binding and when
the Office decides that a modification to an individual
licence shall be carried out, that modification shall be
implemented from such date as may be established by
the Authority.
(2) The Minister shall be informed of any modifications
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  17
proposed to be made in pursuance of this article and he may, if it
appears requisite or expedient for him to do so in the interests of
national security or of the foreign affairs of Malta, direct that the
modifications not be made.
Termination of 
authorisation.
Amended by:
XVIII. 2000.31.
21. Any authorisation granted under this Act shall terminate,
and cease to be valid, in whole or in part as the case may require,
upon -
( a ) the expiration of the term specified in the
authorisation;
( b ) the happening of an event or circumstance which
according to the authorisation causes the termination
thereof;
( c ) a renunciation thereto by the holder of the
authorisation;
( d ) the revocation thereof by the Authority;
( e ) the insolvency, liquidation or bankruptcy of the
authorised provider, or a composition with the
creditors of such provider.
Revocation of 
authorisation.
Amended by:
XVIII. 2000.31.
22. (1) An authorisation granted under this Act may be
revoked by the Authority with the approval of the Minister, either
in whole or in part, for any of the following reasons:
( a ) if the authorisation has been granted on the basis of
information which was incomplete, misleading or
incorrect in any material respect;
( b ) if the authorised provider fails to act on the
authorisation by failing to provide an authorised
telecommunications service for a period exceeding
180 days from the date of issue of the authorisation, or
suspends such activity for a period exceeding 180
days:
Provided that the Authority may extend the
period aforesaid for a good and valid reason;
( c ) if the authorised provider is in breach of an obligation
imposed by or under this Act or contained in the
authorisation which in the opinion of the Regulator
which shall be stated in writing, which shall include
reasons and which shall respect the principle of
proportionality is important enough to justify the
revocation of the authorisation, and, where the breach
is capable of remedy, the authorised provider has
failed to remedy the breach within such reasonable
time as the Regulator may have given him for that
purpose;
( d ) the happening of any event or circumstance which, in
accordance with the authorisation or with any
regulations made under this Act, authorises the
Authority to revoke it;
and upon revocation, in whole or in part, the authorisation shall
  18  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
cease to be a valid authorisation.
(2) The revocation of an authorisation shall not relieve the
authorised provider of any liability arising from anything done
prior to the revocation.
3. General Provisions Applicable to Authorised Providers
Frequencies.
Amended by:
XVIII. 2000.31.
Cap. 49.
23. (1) Every authorised provider requiring the allocation of a
frequency shall apply for such licence or other authorisation as may
be required for that purpose under the Wireless Telegraphy
Ordinance.
(2) Any obligation, condition or limitation imposed by or under
the said Ordinance in connection with the allocation or the
management of a frequency for the provision of a telecom-
munications service in accordance with this Act shall, without
prejudice to anything contained in the said Ordinance, be deemed
to be obligations, conditions and limitations imposed by this Act.
Numbering plan.
Amended by:
XVIII. 2000. 31.
24. (1) The Authority shall establish a numbering plan for
telecommunications services and allocate numbers and numbering
ranges to authorised providers according to procedures that are
transparent, equitable, non-discriminatory and timely.
(2) The numbering plan may be changed or modified by the
Authority as it may from time to time deem necessary or
appropriate and the numbers allocated may be withdrawn and re-
allocated to give effect to any such change or modification:
Provided that the Authority shall ensure that as much as
possible no undue prejudice shall be caused thereby to authorised
providers.
(3) The main elements of the national numbering plan and of
all subsequent amendments shall, subject only to limitations on
grounds of national security, be published by the Authority.
(4) No authorised provider shall use any numbering system for
the provision of telecommunications services otherwise than in
accordance with an allocation made under this article.
Interconnection.
Amended by:
XIX. 1998.3.
Substituted by:
XVIII. 2000.31.
25. (1) The competent authority shall encourage and secure
adequate interconnection in the interests of all users and shall
exercise its responsibility in a way that provides maximum
economic efficiency and gives maximum benefit to users. In
particular, the competent authority shall take into account -
(i) the need to ensure satisfactory end-to-end
communication for users;
(ii) the need to stimulate a competitive market; 
(iii) the need to promote co-operation with
counterparts in other States;
(iv) the principles of non-discrimination (including
equal access) and proportionality; 
(v) the need to maintain and develop universal
service. 
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  19
For this purpose the competent authority shall issue
regulations which shall provide for: 
( a ) the circumstances in which the right to interconnection
may be exercised and the objective, transparent and
non-discriminatory conditions and limitations upon the
exercise of such right; 
( b ) the technical and financial conditions of
interconnection and the legal nature of interconnection
agreements; 
( c ) the obligation to notify interconnection agreements to
the authority and the conditions under which such
notification is to be made, including any matter related
to the publicity or confidentiality of such agreements
or of parts thereof; 
( d ) the exercise of power by the authority to modify
interconnection agreements in the public interest; 
( e ) the principles upon which charges for interconnection
should be based and the method of accounting to be
used; 
( f ) the obligation of authorised providers or of particular
classes thereof to publish an interconnection offer and
the principles upon which the conditions of such offer
shall be based; 
( g ) the way in which disputes related to interconnection
shall be resolved.
Inspection and 
supervision.
Amended by:
XVIII. 2000.31;
XXVII. 2002.58.
26. (1) Every authorised provider shall allow the Authority,
and every person authorised by it for the purpose, such access to
any premises, installation, files, accounting records and any
information under the control of the provider as may be reasonably
required by the Authority and as may be requested to take place
during normal business hours for the purpose of investigating any
matter relevant to compliance with this Act, any regulations made
thereunder, any terms and conditions of the licence or any directive
issued or given by the Authority or in order to ensure such
compliance.
(2) The Authority shall give fifteen days notice to the
authorised provider of any intention to act under subarticle (1),
giving reasons for the request:
Provided that this subarticle shall not apply where the
access to an installation is urgently necessary to prevent or remove
an interference with a telecommunications service or damage to
persons or property.
(3) Where an authorised provider wishes to have any
information provided by him to be treated as confidential by the
Authority on the grounds that it contains information revealing the
commercial strategy of the authorised provider or other information
the disclosure of which would unduly interfere with the right to
privacy of third parties, it shall submit such information under seal
and request the Authority to treat it as such. The Authority shall
  20  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
comply with such a request unless it considers the confidentiality
requested to be impracticable in the light of the requirements and
the fundamental principles of this Act or of any regulations made
thereunder or of any other law.
Resolution of 
disputes by 
Authority.
Amended by:
XVIII. 2000.31;
XXVII. 2002.58.
27. (1) Where a dispute arises between an authorised provider
and another authorised provider or any other person relating to a
telecommunications system or service, the matter may be referred
to the Authority by any of such persons.
(2) Upon receipt of any reference as aforesaid, or upon
otherwise becoming aware of any such dispute which it believes
ought to be investigated, the Authority shall notify the parties
concerned that the matter is under investigation allowing them a
reasonable time within which to produce the relevant information
and make their representations.
(3) Having duly examined and considered the facts placed
before it and such other information as it may require, the
Authority may issue such directives as are within its powers and as
it may deem appropriate.
4. Interests of Users and Subscribers
Reference of 
complaints to 
Authority.
Amended by:
XVIII. 2000.31.
28. (1) It shall be the duty of the Authority to protect the
interests of the subscribers and users of a telecommunications
service.
(2) Every person who subscribes, or wishes to subscribe to or is
a user of a telecommunications service provided by an authorised
provider may, by application in writing, request the Authority to
investigate any complaint made by him and contained in the said
application, concerning the quality of the service provided by the
authorised provider, or the terms and conditions under which such
service is provided or with respect to any apparatus provided or
made available to him or acquired by him in connection with the
said service.
(3) The complaint shall be addressed to the Authority and shall
contain a brief statement containing all the relevant facts.
(4) The complaint shall be communicated to the authorised
provider complained against, who shall be given an opportunity to
make representations within a reasonable time as may be
appropriate in the circumstances.
(5) The Authority shall then examine the complaint, and such
other facts as it may deem necessary for reaching a conclusion and
may take such measures and issue such directives as are within its
powers as it may deem appropriate.
Suspension of 
service to 
subscribers.
Amended by:
XVIII. 2000.31.
29. (1) Except as provided by or under this Act, a subscriber
or other user of a telecommunications service may not be denied a
service provided by an authorised provider, or have any such
service discontinued.
(2) A service as aforesaid may be denied or discontinued for a
reason allowed by regulations made under this Act or contained in
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  21
the terms and conditions of service submitted to and approved by
the Authority and the right of an authorised provider to discontinue
a service shall in all cases be exercised in a proportionate manner.
Nullity of certain 
conditions.
Amended by:
XVIII. 2000.31.
30. A term or condition for the provision of a telecommunica-
tions service, even if agreed to by a subscriber or user, shall be null
and without effect to the extent that it is inconsistent with any
provision of this Act or of any regulations made thereunder or with
the terms and conditions of the authorisation on the strength of
which the service is provided.
5. Further Functions of the Authority
Standards and 
testing of 
apparatus.
Amended by:
XVIII. 2000.31.
31. (1) No apparatus may be offered for sale, provided,
installed or used by any person unless it conforms to such technical
standards and specifications as may be prescribed.
(2) The Authority may at any time require an apparatus to be
tested at such place and time and in such manner as it may direct.
Qualifications.
Amended by:
XVIII. 2000.31.
32. (1) No person shall carry out any works or perform any
other act, or be entrusted to carry out such works or perform such
act, for the construction, repair, maintenance, alteration or control
of any telecommunications system or apparatus unless he possesses
such qualifications to carry out such works or perform such act as
may be prescribed.
(2) Regulations prescribing the qualifications aforesaid may
also specify the tests to be employed for ascertaining whether a
person possesses the necessary qualifications.
Monitoring of 
telecommunica-
tions development.
Amended by:
XVIII. 2000.31.
33. (1) The Authority shall carry out such research, studies
and consultations as may be necessary for any one or more of the
following purposes:
( a ) monitoring local and international developments in the
field of telecommunications;
( b ) identifying means of improving efficiency, standards
and market competition in telecommunications;
( c ) co-operating with foreign telecommunications
authorities;
( d ) advising the Minister in the formulation of policies in
the field of telecommunications and in respect of
training in telecommunications.
(2) With the concurrence of the Minister, the Authority may do
all such things as he may deem necessary or appropriate to ensure
adequate and efficient telecommunications services in Malta.
6.  Appeals
Telecommunica-
tions Appeals 
Board.
Amended by:
XVIII. 2000.31;
XXVII. 2002.58.
34. (1) There shall be a Telecommunications Appeals Board,
consisting of three members, of whom one, who shall be the
chairperson, shall be a person who has practised as an advocate for
not less than seven years.
(2) The members of the Board shall be appointed by the
  22  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
Minister for a period indicated in their letter of appointment, and
may be so appointed for further periods as the Minister may deem
appropriate.
Cap. 12.
(3) A member of the Board may be challenged or abstain for
any of the reasons for which a judge may be challenged or abstain
in accordance with article 734 of the Code of Organization and
Civil Procedure. In any such case the Minister shall appoint a
person, having the qualifications of the member challenged or
abstaining, to sit as a member of the Board in substitution of the
said member.
(4) A member of the House of Representatives or of a Local
Council shall be disqualified from being appointed or continuing to
be a member of the Board for so long as he holds that office.
(5) A member of the Appeals Board may only be removed from
office by the Minister on the grounds of gross negligence, conflict
of interest, incompetence, or acts or omissions unbecoming a
member of the Appeals Board.
(6) A member of the Board shall for a period of one year
following the termination of his appointment not engage in any
activity which would have been incompatible with the exercise of
his functions as a member of the Board.
(7) The Minister shall also designate a person to serve as
secretary to the Board and such person serve in such capacity in
accordance with ethical standards which form part of public service
values.
Appeals.
Amended by:
XIX. 1998.3;
XVIII. 2000. 31;
XXVII. 2002.58.
35. (1) An appeal shall lie to the Telecommunications
Appeals Board -
( a ) in accordance with article 16;
( b ) against any rejection or refusal of an application for an
authorisation;
( c ) against any decision revoking an authorisation under
article 22;
( d ) against any decision given by the Authority in any
dispute between authorised providers under article 25;
( e ) against any decision given by the Authority on the
complaint of a subscriber under article 28;
( f ) in such cases as may be prescribed.
(2) The right to appeal shall be competent to any person
aggrieved by the decision, or as provided in article 16:
Provided that in any case, a person in making an appeal to the
Appeals Board shall also explain its juridical interest in impugning the
decision appealed from.
(3) An appeal to the Board may be filed on any of the following
grounds -
( a ) that a material error as to the facts has been made;
( b ) that there was a material procedural error;
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  23
( c ) that an error of law has been made;
( d ) that there was some material illegality, including
unreasonableness or lack of proportionality.
(4) The Board shall give reasons for its decision and shall
cause such decisions to be made public omitting, if it deems it
appropriate for reasons of commercial confidentiality, the names of
the persons involved.
(5) In determining an appeal under this article the Board may:
(i)  dismiss the appeal; 
(ii) annul the decision, 
and where the Board annuls the decision it may refer the matter to
the Authority or the Minister (as the case may be) with a direction
to reconsider it and reach a decision in accordance with the
findings of the Board. 
(6) The effect of a decision to which an appeal relates shall not
except where the Board or the Court of Appeal, as the case may be,
so orders, be suspended in consequence of the bringing of the
appeal.
Powers and 
procedure of the 
Board.
Amended by:
XVIII. 2000.31.
36. (1) The Board shall be competent to hear and decide any
appeal made to it in accordance with the provisions of this Act and
any regulations made thereunder; and subject to article 37, the
decisions of the Board shall be final and binding.
(2) For the exercise of its functions, the Board may summon
any person to appear before it and give evidence and produce
documents; and the chairperson shall have the power to administer
the oath. The Board may also appoint experts to advise the Board
on any technical issue that may be relevant to its decision.
(3) For the purposes aforesaid the Board shall have the same
powers as are competent to the First Hall, Civil Court according to
law.
(4) The procedure to be followed before the Board, the time
within which and the manner in which an appeal to the Board is to
be made shall be such as may be prescribed; and subject thereto,
and to any other applicable provision of this Act, the Board may
establish its own procedure.
Appeal to the 
Court of Appeal.
Amended by:
XVIII. 2000.31;
VI. 2001.29;
XXVII. 2002.58.
Cap. 12.
37. (1) Any party to an appeal to the Board who feels
aggrieved by a decision of the Board, or the Authority if it feels
dissatisfied with any such decision, may on a question of law
appeal to the Court of Appeal (Inferior Jurisdiction) as constituted
in accordance with article 41(6) of the Code or Organization and
Civil Procedure by means of an application filed in the registry of
that court, in the case of an appeal by the Authority within thirty
days from the date of the Board’s decision, and in the case of any
other person within thirty days from the date on which that decision
has been notified to him.
(2) The Minister responsible for justice may by regulations
under this subarticle establish the fees payable in the registry of the
  24  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
court in relation to the filing of judicial acts in connection with
appeals under this article:
Cap. 12.
Provided that until such fees are so established, the fees
contained in Schedule A to the Code of Organization and Civil
Procedure shall apply.
(3) The board established under article 29 of the Code of
Organization and Civil Procedure may make Rules of Court
governing appeals to the Court of Appeal under this article.
7. Regulations
Power to make 
regulations.
Amended by:
XIX. 1998.3;
XVIII. 2000.31;
XXVII. 2002.58.
38. (1) The Minister may, either on the recommendation of
the Authority or on his own initiative after consultation with the
Authority, or if the said Authority is not constituted, on his own
initiative make regulations to give better effect to any of the
provisions of this Act and in particular, but without prejudice to the
generality of the above to the principles of fair competition and to
open network provisions and to provide for -
( a ) the manner in which a telecommunications
infrastructure or apparatus is to be installed, operated,
maintained, protected or controlled;
( b ) the technical standards or specifications to be observed
with respect to telecommunications infrastructure or
apparatus;
( c ) the measures to be taken to ensure compliance with
international and other standards or equipment used in
the telecommunications industry, in particular those
established by the European standardization bodies
including the European Telecommunications
Standards Institute (ETSI) and the European
Committee for Standardization/European Committee
for Electrotechnical Standardization (CEN/Cenelec)
and with international standards and recommendations
adopted by the International Telecommunication
Union (ITU), the International Organisation for
Standardization (ISO) or the International
Electrotechnical Committee (IEC);
( d ) the means to be used and the measures to be adopted,
whether by prohibition or otherwise, in order to ensure
public and private safety and to prevent danger,
damage or nuisance;
( e ) the quality and standard of telecommunications
services to be provided by an authorised provider and
quality of service targets;
( f ) the establishment and maintenance of an efficient
assistance service for subscribers and users;
( g ) the complaint processing procedure to be adopted and
implemented by authorised providers of a tele-
communications service;
( h ) any matter related to the interconnection of
telecommunications systems, or to collocation of
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  25
facilities between and facility or equipment sharing
between authorised providers, to carrier pre-selection,
to access to networks by users, subscribers or by
operators of other networks, to leased lines, to access
to international data networks, and to rights of way
and any matter related to compensation payable in
respect thereof; 
( i ) any matter concerning or related to number portability,
numbering plans, allocation of numbers, competition
rules in the field of telecommunications, billing
procedures and billing accuracy, emergency services,
directory services, tariff controls, use of frequency
spectrum, ownership of authorised providers, universal
service obligations, licence fees payable to the
competent authority, transfer, renewal and termination
of licences, the conditions under which licences shall
be issued, and returns and reports to be made to the
competent authority; 
( j ) the regulation of telecommunications systems for the
transmission or reception of satellite signals; 
( k ) the obligations of an authorised provider having a
dominant market position; 
( 1 ) the obligations of systemless service providers; 
( m ) the regulation of cable television and cable services
including the introduction of must carry rules, the
obligation to make available channel capacity for
public, Governmental or educational use, the setting of
rates for leased access to cable networks, rate
regulation, cross-ownership of cable networks and of
other networks or services and the implementation of
effective competition in the field of cable services; 
( n ) any matters that may be required for the purpose of
complying with any international obligation of Malta; 
( o ) any matter related to the resolution of disputes arising
in connection with the operation of
telecommunications systems or the provision of
telecommunications services including appeals from
any decision.
(2) Regulations made under this article may also -
( a ) require authorised providers to adopt cost accounting
systems as may be prescribed and to keep such
operational, accounting, financial, statistical and
technical records as may be specified in the
regulations, and to furnish to the Authority such
statements, returns and other information including
information about any company in which an authorised
provider has a controlling interest as the Authority
may require for the carrying out of its functions under
this Act or as may be specified in the regulations;
( b ) prescribe measures to be taken by authorised providers
  26  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
for the purpose of ensuring the inviolability of the
telecommunications transmitted and their confiden-
tiality and the protection of privacy in relation to any
telecommunications service including data protection
measures and matters related to the use of information
obtainable in the telecommunications sector for the
purpose of direct marketing;
( c ) prescribe the measures to be taken by authorised
providers as may be required to be taken by any
international commitment taken, or intended to be
taken by the Government;
( d ) prescribe the fees to be paid by an authorised provider
for or in respect of any authorisation under this Act
and the fees to be paid to the Authority for services
rendered by it;
( e ) require an authorised provider to publish or cause to be
published a directory of subscribers and provide for
any matter relating to such directories;
( f ) provide for any matter that is to be or may be
prescribed, or in respect of which regulations are to be
or may be made, under any of the provisions of this
Act;
Cap. 12.
( g ) authorise the Authority to impose administrative fines
or sanctions upon any authorised provider acting in
contravention of any provisions of this Act or of any
regulations made thereunder  and provide for the
procedure for the imposition and enforcement of such
fines which enforcement procedures may include
provisions to the effect that any such fines shall
constitute an executive title for the effects and purposes
of Title VII of Part I of Book Second of the Code of
Organisation and Civil Procedure : 
Provided that any administrative fines provided
for by regulations made under this article shall not
exceed the sum of ten thousand liri for each offence
and one thousand liri for each day during which failure
to observe the provisions of this Act or of any
regulations made thereunder or of any authorisation
persists:
Provided further that the administrative fines
stipulated in this paragraph may be increased by
regulation up to a maximum of fifty thousand liri and
five thousand liri for each day during which any
contravention persists, respectively.
(3) Regulations made under this article may authorise the
Authority to designate the services which are to be provided as
universal service obligations, and to require any one or more
authorised providers to provide such services.
(4) Where regulations are made under subarticle (3), the
Authority shall have power to issue directives designating the
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  27
universal service obligations and requiring any one or more
authorised providers to provide such services, or any one or more
of them, in accordance with such terms and conditions as may be
therein specified, including terms and conditions under which any
one or more of such services are to be provided at no profit or at a
reasonable loss to the authorised provider.
(5) Where the Authority issues a directive under subarticle (4),
it may at its discretion either in the same directive or by a further
directive, make provision for such funding mechanism as it may
deem necessary and appropriate to ensure that, where the additional
cost for the provision of universal service obligations by any one or
more authorised providers is higher than the additional revenue
derived therefrom by such provider or providers, the burdens
resulting from the obligations aforesaid are shared fairly by all
authorised providers specified as contributors in the regulations.
(6) ( a ) Regulations made under this article may also delegate
to the Authority the power to issue directives as it
deems fit for the purpose of the implementation of any
matter provided for in the said regulations.
( b ) Any directive issued by the Authority under any
delegation made to it as described in paragraph (a)
shall be published in the Gazette.
8. Offences and Penalties
Offences and 
penalties.
Amended by:
XVIII. 2000.31;
XXVII. 2002.58.
39.  (1) Any person who -
( a ) provides any telecommunications service or installs or
operates any telecommunications system installation
or apparatus without authorisation under and in
accordance with any of the provisions of this Act or in
violation or breach of any condition, restriction or
limitation imposed by or under this Act or in the
instrument containing the authorisation; or
( b ) sells or offers for sale or provides or installs or uses
any installation or apparatus which does not conform
with such technical standards or specifications as are
required or established by or under this Act, or which
he knows, or has reasonable cause to believe, to be
defective or incompatible with the services for which
it was sold, provided, installed or used; or
( c ) constructs, repairs, maintains, alters or controls any
apparatus or installation without having the
qualifications required for that purpose by or under
this Act; or
( d ) uses any telecommunications system or apparatus
supplied by an authorised provider for a purpose other
than that for which it was supplied, or neglects to
observe instructions which are issued by an authorised
provider for the proper use of the telecommunications
system or apparatus or makes any improper use
thereof,
  28  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
shall be guilty of an offence under this Act and shall be liable to a
fine ( multa ) not exceeding five thousand liri and in the case of a
continuing offence to a further fine ( multa ) not exceeding five
hundred liri for each day during which the offence continues.
(2) Any person who furnishes information to the Authority or
to the Minister which he knows, or has reasonable cause to believe,
to be false or misleading, or impedes or obstructs the Authority or
the Minister, in the performance of any function under this Act,
shall be guilty of an offence under this Act, and shall, on
conviction, be liable to a fine ( multa ) not exceeding ten thousand
liri or to imprisonment for a period not exceeding six months, or to
both such fine and imprisonment.
(3) Any person who, being a person employed or detailed for
duty with or attached to any authorised provider -
( a ) gives any information with regard to any message with
which he becomes acquainted by reason of his office
to any person not entitled to receive such information;
or
( b ) wilfully alters or suppresses any message or the
designation of the person to whom it is transmitted or
to whom it is addressed, without a good cause; or
( c ) wilfully omits, delays or obstructs the transmission or
delivery of any message or cancels or destroys any
message or an application for the transmission of any
message without a good cause; or
( d ) wilfully represents a message as having been sent by a
person other than the sender or as being addressed to a
person other than the addressee, or an application for
the transmission of a message as having been made by
a person other than the applicant, without good cause;
or
( e ) wilfully cancels or destroys any message not addressed
to him or an application for the transmission of a
message, without good cause; or
( f ) unlawfully withdraws from the control of an
authorised provider, or of an individual employed or
detailed for duty with, or attached to, an authorised
provider, a message addressed to another person,
shall be guilty of an offence under this Act and shall be liable, on
conviction, to a fine ( multa ) not exceeding ten thousand liri or to
imprisonment for a period not exceeding six months, or to both
such fine and imprisonment.
(4) Any person who assaults or obstructs or impedes any
officer, employee or agent of an authorised provider in the exercise
of his duties with such authorised provider shall be guilty of an
offence under this Act, and shall, on conviction, be liable to a fine
( multa ) not exceeding one thousand liri or to imprisonment for a
period not exceeding one month, or to both such fine and
imprisonment.
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  29
(5) Without prejudice to the foregoing provisions of this
article, any person who contravenes or fails to comply with any
provision of this Act or of any regulations made or direction given
thereunder shall be guilty of an offence against this Act, and shall,
on conviction, be liable to a fine ( multa ) not exceeding one
thousand liri and in case of a continuing offence to a further fine
( multa ) not exceeding two hundred liri for every day during which
the offence continues.
Proceedings for an 
offence.
Amended by:
XVIII. 2000.31
XXVII. 2002.58.
Cap. 9.
40. (1) No proceedings for any offence under this Act other than
offences under article 39(1)( d ) shall be instituted without the consent
of the Authority or at its request .
(2) Notwithstanding anything contained in the Criminal Code,
an appeal to the court of competent jurisdiction shall lie to the
prosecution against any judgment delivered in any proceedings
with respect to an offence under this Act.
PART III
Savings and Transitory Provisions
Savings.
Amended by:
XIX. 1998.3;
XVIII. 2000.31.
Cap. 250.
41. (1) All regulations and other subsidiary legislation made
under the Telemalta Corporation Act *  shall remain in force and
shall have effect as if made under this Act and shall for all effects
and purposes be treated accordingly.
Cap. 250.
Act, the provisions of articles 29 to 34 (both inclusive) of that Act
shall remain in force and continue to have effect, and shall be
deemed always to have remained in force and continued to have
effect, with respect to the public officers therein mentioned; and as
from the date of the repeal of the said Act, the provisions aforesaid
shall have effect as if references in them to Telemalta were
references to the designated company.
Prohibition of call-
back service.
Added by:
XIX. 1998.3.
Amended by:
XVIII. 2000.31.
42. (1) No person shall use or permit the use or suffer to be
used any public telecommunications system or apparatus in
connection with the provision of a call-back service or do anything
so as to facilitate or promote the use of any public telecom-
munications system or apparatus in connection with the provision,
operation or use of a call-back service.
(2) For the purpose of this article, "call-back service" means a
service offered by any person who is not an authorised provider
which secures for any person in Malta access to that service, by
means of conveyance over a public telecommunications system, to
the equivalent of the public telecommunications system or a public
telecommunications service in another country or territory, by
whatever technical means, and which enables that person to make
use of that system or service as if established in that country or
territory; and includes any service, whether automated or not, by
which the access aforesaid is obtained.
(3) Subarticle (1) shall not apply to anything done by an
*Repealed by this Act.
  30  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
authorised provider permitted by or in accordance with an
authorisation or regulation under this Act.
(4) The provisions of this article shall cease to have effect in
whole or in part or in respect of any specified type of call-back
service as from such day as the Minister may establish by order in
the Gazette.
Licences issued 
under Telemalta 
Corporation Act.
Cap. 250.
Amended by:
XVIII. 2000.31.
43. (1) Any licence or authorisation lawfully issued or granted
before the 2 January, 1998, under the Telemalta Corporation Act †
and in force on the said date, shall, until such date continue to have
effect as is provided by or under the said Act and, thereafter, shall
continue to remain in force and to have effect in respect of anything
that requires authorisation under this Act, as if they had been issued
or granted under this Act, with such modification, adaptations and
limitations as may be necessary or appropriate for that purpose, and
shall be subject to the provisions of this Act as if they had been so
issued or granted.
(2) Without prejudice to the foregoing provisions of this
article, with effect from the 2 January, 1998 -
( a ) the Authority, as successor to Telemalta Corporation,
shall acquire all rights, including rights of action, and
assume all obligations and liabilities of the said
Corporation arising from or related to any licence or
authorisation, and relative agreements, kept in force
under this article; and
( b ) all fees due under or in respect of any such licence or
authorisation, and falling due on or after the 2 January,
1998, shall become due and be payable to the
Authority.
(3) Any licence or authorisation lawfully issued, granted or
kept in force between the 2 January 1998 and the 30 June 2000
under this Act shall after the 30 June 2000 continue to have effect
as is provided by or under this Act subject to the provisions of this
Act as amended from time to time and with such modifications,
adaptations, and limitations a may be necessary or appropriate for
the purpose.
Exclusive privilege 
not to remain 
permissable.
Added by:
XVIII. 2000.31.
44. (1) An authorisation to install or operate a
telecommunications system or to provide a telecommunications
service may, only until the 31st December, 2002 and subject to the
following provisions of this article, be granted with exclusive
privilege. 
(2) No exclusive privilege may be granted or shall have effect
beyond the 31st December of the year 2002.
(3) As from the day when the Minister may by order appoint
the exclusive privilege of operating any telecommunications
system or of providing any telecommunications services as may
have been granted in or under any law, licence, authorisation,
contract or other instrument whether before or after the coming into
force of this article shall cease to exist and different dates may be
appointed in respect of different categories of telecommunications
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  31
services or systems. 
(4) The provisions of this article shall have effect
notwithstanding the provisions of any law, licence, authorisation,
contract, agreement or other instrument and in the case of conflict
between the provisions of this article and any other law or anything
done thereunder the provisions of this article shall prevail. 
(5) The coming into effect of the provisions of subarticle (3) or
of anything done in pursuance thereof under this article and the
variation of any licence or contract in pursuance of article 38 - 
(i) shall not be construed as constituting the taking
or deprivation of property or of possessions or
an interference with the peaceful enjoyment of
possessions for the purposes of any law passed
prior to this Act; 
(ii) shall not be construed as constituting the
termination of a licence; 
(iii) shall not be interpreted as constituting a tort, a
breach of contract or as giving rise to any action
for damages or other payment to the person who
ceases to hold an exclusive privilege:
Provided that nothing in this subarticle shall be construed
as implying that had it not been for the provisions of this subarticle
any person would have had a right of action based on the taking or
deprivation of property or possessions or on an interference with
the peaceful enjoyment of possessions, or on tort or breach of
contract or would have had a right of action for any payment in
respect of the termination of any exclusive privilege or that such
termination would have amounted to the termination of a licence. 
(6) In any event, any person who loses any exclusive privilege
in pursuance of this article shall be deemed, even for the purposes
of the proviso to subarticle (1) of article 37 of the Constitution if
the said article 37 were applicable, to have been adequately
compensated for any such loss by the acquisition of the opportunity
to provide telecommunications services and operate
telecommunications systems under the conditions as are provided
for in this Act and as described in the Schedule to this Act and that
Parliament has deemed this to be a special case where it is
appropriate in the national interest to determine the above criteria
in the determination of the compensation, if any, that is payable
were the said article 37 of the Constitution applicable to the case.
Duty of competent 
authority to make 
variations to 
licences and 
contracts.
Added by:
XVIII. 2000.31.
45. (1) Notwithstanding the provisions of any other law, it
shall be the duty of the competent authority to make in a
proportionate manner and, after consulting the authorised provider
or providers concerned such variations of each licence to an
authorised provider issued before the 1st March, 2000 and to each
contract between it and an authorised provider or between
authorised providers entered into before the 1st March, 2000 as
appears to the competent authority to be necessary and appropriate
for the purpose of implementing the principles of competition and
open network provisions in telecommunications and for the
  32  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
purpose of ensuring compliance with the purposes of this Act and
any regulations made thereunder. 
(2) When the competent authority makes variations to a
contract or licence in pursuance of subarticle (1) it may also make
such other variations to that contract or licence of a supplemental,
incidental, consequential or transitional nature as it considers
appropriate. 
(3) Any variation to a licence or contract made in pursuance of
subarticle (1) may be made with retrospective effect as from the
date of the coming into force of this article. 
(4) Any variation to a licence or contract made under this
article shall be made by means of notice served on the authorised
provider or providers concerned and shall be published in such a
manner as the competent authority may deem appropriate. 
(5) The decision of the competent authority to make a variation
to a licence or contract in pursuance of this article shall state the
reasons upon which the decision is based. 
Temporary power 
of the Minister to 
exercise functions 
of the Authority.
Added by:
XVIII. 2000.31.
46. (1) Notwithstanding any other provision of this Act, upon
the coming into force of this article and for a period of six months
thereafter, the Minister may issue to a designated company an
authorization under Part II of this Act including terms and
conditions conforming to the provisions of this Act, modify any
authorization, contract or other instrument in respect of the
operation of a telecommunications system or the provision of a
telecommunications service, whether between Government or any
public authority and a designated company or between designated
companies, in force on the date of the coming into force of this
article, for the purpose of implementing the provisions of this Act,
and provide for all such matters as he may deem appropriate for the
purpose of providing for the implementation of the provisions of
this Act; and any instrument containing such authorization,
modification and other matters referred to above shall have full
force, effect and validity.
(2) In this subarticle "designated company" means one or more
companies holding an authorization to provide a
telecommunications service or to operate a telecommunications
system designated as such by the Minister for the purposes of this
article by notice published in the Gazette.
(3) Nothing in this article shall be construed as preventing the
Authority from exercising the powers and functions granted to it by
this Act during the period when the same powers and functions may
also be exercised by the Minister.
(4) Any authorization, modification or other instrument made
by the Minister in pursuance of subarticle (1) above shall, as soon
as possible, be laid on the Table of the House.
Transitory 
provisions.
Added by:
XVIII. 2000.31.
47.  The repeal of articles 39, 40, 41 and 42 shall be without
prejudice to the validity and enforcement of any transfer of any
rights, duties, obligations, assets, property of any description as
well as any ancillary right, including hypothecs, privileges,
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  33
pledges, suretyships and other rights securing any other right or
obligation that have been transferred or acquired before the coming
into force of this article.
Exemption from 
the provisions of 
this Act.
Added by:
XVIII. 2000.31.
48. (1) Telecommunications systems and installations of the
State established to satisfy the exigencies of defence or public
security are exempt from the provisions of this Act.
(2) The Prime Minister may by order published in the Gazette
exempt from the provisions of this Act any installation or
telecommunications system belonging to a Government
Department or to a body established by law and used for its own
purposes and in issuing such an exemption the Prime Minister may
also impose conditions thereto as he deems fit.
Added by:
XVIII. 2000.31.
SCHEDULE
(Article 44)
National Plan for the Reform of the Telecommunications Sector
I. Background
In the first part of the year 2000 Government held discussions
and had exchanges of correspondence with the three main operators
in the telecommunications sector on the liberalisation of the
telecommunications market in Malta. 
Government intends to take the necessary measures to ensure
that existing monopolies are removed within a realistic timeframe.
It is aware of the fact that in certain instances monopolies were
used to create hurdles for investors who wanted to develop new
services. It considers that this was greatly detrimental to Malta’s
economy and has dampened the rate of development in this area
which in other countries has experienced exponential growth in
recent years. 
In other instances monopolies resulted in an unfair treatment of
the user not only through the limiting of services and the provision
of lower quality services, but also through a pricing regime which
generated very high profits to the detriment of the consumer and of
the development of the economy in general. 
Such profits and the absence of competition in the
telecommunications market increase the costs of production in
Malta, cause loss of opportunity and decrease competitively in the
international market. 
Government intends to create an environment which not only
redresses the above but which will also be conducive to investment.
The Administration feels that this is required to build the
communications structure which is today a vital element for
economic growth. 
After due consideration, Government has therefore decided to
proceed with legislative measures intended to reform the
telecommunications market in a manner based on a balance
between liberalisation, efficiency and service to the public. 
  34  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
Government considers that the reform package is advantageous
both to the public and to the three current operators who will enjoy
many opportunities to enter new markets as a result of
liberalisation. 
II.  The Reform Package
Government is intent to enact a legislative framework to make
the proposed reform possible and to put in place an effective
regulatory regime that would have the capability and clout to
ensure the maintenance of a healthy and competitive environment
in the telecommunications market.
Government has given due consideration to all proposals
communicated to it by the three operators of networks and services
in the sector and it is now in a position to determine the following
liberalisation time frame: 
1. All telecommunications services, other than fixed
telephony, mobile telephony, international gateway and cable
television, will be liberalised from the date when this Schedule
comes into force. 
2. The present monopoly in mobile telephony will end
immediately when Maltacom will be licensed to enter the mobile
telephony market. No additional mobile licences will be issued
during the period ending 31 December 2002. The government will
consider the issue of a third operator in 2003 and a third licensee
would therefore not be expected to be in place before 1 January
2005. 
3. The cable television market is to be liberalised on 1 June
2001. 
4. International gateway services, including those for data
services, will be liberalised on 1 January 2003. 
5. Fixed telephony services will be liberalised on 1 January
2003. 
III. Measures concerning Maltacom p.l.c. 
As envisaged when the Competition Act was enacted some years
ago, Government intends to lift the temporary transitional measures
by which Maltacom was exempted from the provisions of the
Competition Act.
Between the date when this Schedule comes into force and 31
December 2002, and subject to the liberalisation time scale
provided for above, Maltacom or any of its subsidiaries will be
licensed to provide, on a non-exclusive basis, all
telecommunications services which Maltacom currently provides
and which are covered by Maltacom’s existing licence, provided
these are not limited by any other current licence or agreement. 
Maltacom or its subsidiaries will immediately be guaranteed a
licence to provide the following telecommunications service:
-  Public fixed telecommunications systems and services;
-  Fixed wireless telecommunications systems and services;
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  35
-  Public mobile telecommunications systems and services;
-  Radio paging systems and services. 
Because of the change in the public mobile operating scenario,
Maltacom will be required to dispose of its shares in Vodafone
Malta Limited within six months from the date when its subsidiary
first provides mobile telephony services. 
Given that in this competitive scenario, Maltacom will need to
operate in the most efficient manner, Government will enter into
discussions with Maltacom with a view to providing for and
assisting it in the carrying, retraining, redeployment or early
retirement of any staff complement surplus beyond that envisaged
in the IPO document of the 8 June 1998. 
Government considers that although some aspects of the
introduction of a liberalised telecommunications scenario will not
benefit Maltacom, in other areas the company will be a clear
beneficiary whilst the situation will not change significantly in
some other areas. The Government is convinced that Maltacom will
be a net beneficiary from liberalisation. 
The areas in which the Government considers that Maltacom will
lose are the following: 
a.  The monopoly on fixed telephony services which at
present runs until 2010 will be replaced by one lasting
until the 31 December, 2002;
b. International gateway services, where again a
monopoly until 2010 will be substituted by one lasting
until the 31 December 2002;
c. The introduction of the possibility of having more than
the present three companies providing data services. 
In this regard one should also bear in mind that had Malta
continued with the present scenario, Government would have had
to ensure that monopolistic positions will not be used to retain
price levels for any services that are not internationally
comparable. 
Government considers that Maltacom stands to gain from the
new regime in the following ways: 
a. The immediate acquisition of an effective mobile
telephony licence in replacement of the non-effective
one enjoyed at present, thus launching the company
into this telecommunications sector, that provides far
greater opportunities for growth, well before the
termination of the existing Vodafone monopoly in
2009; 
b. The possibility to provide cable television services
before the termination of the existing Melita Cable
monopoly in 2006;
c. An expanded market as a liberalised regime generates
new services and new users;
d. The substitution of an unclear regulatory regime with a
  36  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
strengthened regulatory framework. 
It is considered that of the above, the immediate entry into the
mobile telephony market and the possibility of entry into the cable
television market in the very near future are huge advantages which
will be beneficial both in the short and in the long term and which
will enable Maltacom to become a total telecommunications
company instead of being restricted to the fixed telephony
technology whose growth is expected to be limited. 
In any case one should also not overlook the fact that changes in
the telecommunications licensing regime in Malta were envisaged
in the Initial Public Offering (IPO) document issued to launch the
partial privatisation of Maltacom in 1998. In particular, it was
stated in that document that: 
"The Regulator and Maltacom have entered into a licence
agreement on the 2nd January 1998 (the "Licence") which grants
Maltacom the exclusive right to provide,  inter alia , fixed line
national and international voice telephony until 31st December
2010" (p 49 para 1,IPO).
"Under the Licence, Maltacom has the exclusive right until
31st December, 2010 to provide national and international voice
telephony and related value added services; national and
international non-voice services; resale of telecommunications
services; public and private phone card services; ISDN; broadband
telecommunications services over a public network; and services
rendered through all types of public cordless terminal mobility
technology and wireless local loop technology including DECT.
Such services can be provided over fixed lines or by any other non-
mobile means" (p 51 para 4, IPO).
"World Trade Organisation
On the 15th February 1997, 69 WTO member countries
(the "signatories") agreed to open their markets to competition in
basic telecommunications services from dates specified with
respect to each signatory. Since then the total number of signatories
has increased to a present total of 72. The agreement which the
signatories were required to ratify by the 30th November 1997 and
which has come into effect on 5th February 1998 requires that the
signatories allow foreign telecommunications service providers to
offer their services in the signatories’ countries, as well as to
purchase shares in telecommunications companies operating in that
country, in accordance with specific commitments to be
implemented within the agreed timetable. Although Malta is not a
signatory to this agreement, as a WTO member it has the right to
participate in future rounds of negotiations regarding trade
liberalisation in this sector, which negotiations are stipulated in the
WTO Agreement to start by 1st January 2000" (p 52 para 7, IPO)
"European Union
On the lst January 1998 the European telecommunications
market was largely opened to competition as a result of the
successive adoption by the European Union ("EU") of legal
measures requiring the 15 European member countries
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  37
progressively to open up their national telecommunications markets
to competition. Competition covers all telecommunications market
sectors, with specific measures being adopted for value-added
services, satellite services, mobile services and cable television
services, culminating with the requirement on the European
member countries to remove any exclusive rights granted for voice
telephony services by 1st January 1998. In addition, regulatory
rules on areas such as interconnection, licensing and customer
related issues such as contracts and billing have also been adopted.
Certain countries were permitted to apply to the European
Commission for a derogation for specified time for certain of the
market-opening requirements. 
Accession to the EU would require applicant countries to
adopt all EU rules, including those on telecommunications, prior to
or within a specified time from legal accession to the EU. In
addition, closer relations can be sought which do not constitute
accession. Malta may choose to negotiate an accession or other
bilateral agreement with the EU under which it may be required to
adopt certain EU rules such as those in relation to
telecommunications. In either case the maintenance of Maltacom’s
exclusivity may be called into question. See Business-Competition"
(p 53 paras 2 and 3, IPO)
"In addition, any requirement imposed on Malta to lift the
exclusivity period granted to the Company as a result of the
adoption by Malta of specific provisions of European Union law on
telecommunications in accordance with any accession or other
bilateral agreement prior to 2010 may adversely affect the
Company’s competitive position. See "Regulation - International
Regulation - European Union" and Annex A - "The Republic of
Malta". Although the Company believes that any such shortening
of its exclusivity period will require Government compensation the
effect of any such action could adversely affect the Company’s
results of operations and further prospects" (p.33 para 5, IPO).
IV. Measures concerning Melita Cable p.l.c.
Melita or one of its subsidiaries will immediately be
guaranteed a licence to provide the following telecommunications
services:
- Cable television services; 
-  Telecommunications transport in respect of data
services;
-  Leased line data services;
-  Data services over a cable television system;
Furthermore Melita or one of its subsidiaries will also be
immediately authorised to provide public fixed telecommunications
systems and services (including international gateway services) as
from 1 January 2003. 
The Internet and Other Data Networks (Service Providers)
Regulations, 1999 will be modified in order to provide that the
open access obligations will only apply to companies having a
  38  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
dominant market position in the provision of telecommunications
transport related to Internet access services. 
Government considers that although Melita Cable p.l.c.
will lose the privilege of exclusivity in cable television services on
the 1 June 2001 it will be a beneficiary from liberalisation for the
following reasons: 
a. Melita’s present licence expires on the 2 July 2006
whilst under the new regulatory framework Melita will
be guaranteed a renewable 10 year licence; 
b. The company’s licence at present specifically
prohibits the use of the cable system for the provision
of telephony services. Under the new scenario the
company will be given a licence to provide public
fixed telecommunications services over its system as
from the 1 January 2003; 
c. The company’s right to provide data services, as
distinct from the transmission of data signals, over its
network is currently being contested. Under the new
scenario this issue will be resolved; 
d. The company’s right to use ducts passing under public
ways is also subject to judicial determination. Under a
new liberalised regime this issue will also be resolved; 
e. Under the transitional arrangements for the
introduction of the new legal regime the company will
be allowed to retain its monopoly in the cable
television field until the 1 June 2001; 
f. Melita may not at present operate an international
gateway. Melita will however be given a licence to
provide these services as from 1 January 2003; 
g. The present monopolistic scenario in the
telecommunications sector restricts the commercial
freedom of market players to choose their fields of
operation. The liberalised regime opens opportunities
to provide new telecommunications services; 
h. Under current licences new services may not be
introduced unless they are specifically provided for in
the licence whilst the proposed licences will be
sufficiently technology neutral to enable licensees to
implement services compatible with next generation
standards; 
i. The current unclear regulatory regime will be replaced
by a strengthened regulatory structure which will have
adequate resources to ensure fair competition on a
level playing field between all market players; 
j.  Under the current regulations on Internet access all
Internet Service Providers are granted a right of open
access to Melita’s network. The new market regulation
will provide that open access rights will become
operative only when a company achieves significant
market power in the field of telecommunications
  TELECOMMUNICATIONS (REGULATION)  ġ CAP. 399.  39
transport related to Internet access; 
k. Maltacom is at present exempt from the Competition
Act. This exemption will cease on the coming into
force of this Schedule and all market players will be
made subject to the rules of competition law; 
1. Under the current regulatory regime licences tend to
be viewed as sensitive commercial documents to
which others may not have access. The proposed
model would introduce regulatory transparency and
make all licences public in the interests of regulatory
certainty and non-discrimination. 
V. Measures concerning Vodafone (Malta) Limited 
Vodafone or one of its subsidiaries will be immediately
guaranteed a licence to provide the following telecommunications
services: 
-  Public mobile telecommunications systems and
services; 
-  Data services over a mobile telephony network. 
Vodafone or one of its subsidiaries will also be
immediately authorised to provide international gateway services
from 1 January 2003. 
Because of the change in the public mobile operating
scenario, Maltacom will be required to dispose of its shares in
Vodafone Malta Limited within six months from the date its
subsidiary first provides mobile telephony services. 
Government considers that the introduction of a liberalised
telecommunications scenario will result in Vodafone (Malta)
Limited losing the monopoly which it enjoys in the provision of
TACS and ETACS mobile services. The monopoly in other fields
of cellular telephony services is currently being contested by
Maltacom before the Telecommunications Appeals Board and
although the Telecommunications Regulator has held that
Vodafone’s licence grants it the right to exclude others from the
cellular mobile telephony market this question is ultimately for the
Appeals Board to decide. 
Government also considers that Vodafone (Malta) Limited
stands to gain from the new regulatory regime in the following
ways: 
a. Maltacom will be required to sell its Vodafone shares
within six months from the date its subsidiary first
provides mobile telephony services. This will bring to
an end the very important right which Maltacom
enjoys at present to acquire the majority shareholding
of the company. It will also terminate the extensive
rights which Maltacom as a minority shareholder has
with regard to Vodafone’s pricing policies and with
regard to the running of key aspects of the company’s
business; 
b. Whilst Vodafone’s present licence expires on the 10
  40  CAP. 399. ħ   TELECOMMUNICATIONS (REGULATION) 
August 2009 and the company cannot provide services
beyond that date, under the new framework the
company will be granted a new 10 year licence which
will be renewable for other 10 year periods; 
c. At present Vodafone is obliged to use the Maltacom
infrastructure for international gateway services. The
company will be licensed to provide international
gateway services as from 1 January 2003; 
d. Vodafone Malta Limited will still benefit from a
duopoly situation in the mobile telephony market until
the 31 December 2002 with a possibility of an
extension of this situation beyond that date; 
e. Vodafone Malta Limited’s present licence only
authorises the use of TACS, ETACS and GSM
standards whilst the new licence will apply to any
European standard. This will grant Vodafone
permission to implement services compatible with
next generation standards, including UMTS; 
f. The present monopolistic scenario in the
telecommunications sector restricts the commercial
freedom of market players to choose their fields of
operation. The liberalised regime opens opportunities
to provide new telecommunications services; 
g. The current unclear regulatory regime will be replaced
by a strengthened regulatory structure which will have
adequate resources to ensure fair competition on a
level playing field between all market players; 
h.  Maltacom is at present exempt from the Competition
Act. This exemption will cease on the coming into
force of this Schedule and all market players will be
made subject to the rules of competition law; 
i. Under the current regulatory regime licences tend to
be viewed as sensitive commercial documents to
which others may not have access. The proposed
model would introduce regulatory transparency and
make all licences public in the interests of regulatory
certainty and non-discrimination. 
VI. The way forward 
Government trusts that all operators would view the
programme of change outlined above as positive. It is certain that
in this new scenario all operators will recognise new opportunities
to expand their operations and to continue as major players in this
economic sector.
