This review defines the market(s) for wholesale transit services in the public telephone network provided at fixed locations in Malta, conducts an assessment of the identified markets on the basis of the ‘Three Criteria Test’ and sets out the reasoning on the MCA’s regulatory approach.
The current review considers two wholesale transit markets in Malta:
- a wholesale national transit market; and
- a wholesale international transit market.
Based on a demand-side and supply-side substitutability analysis, the MCA notes that GO, Melita and Vodafone are currently offering substitutable wholesale national and international transit services. Consequently, the services provided by all these operators fall in the same relevant market.
The MCA deems that, given Malta’s geographical circumstances, the provision of wholesale national transit services features appreciably different competitive conditions than those observed for the provision of wholesale international transit services.
The relevant geographic market for the provision of both national and international transit services at a fixed public location in Malta is national in scope.
On the basis of the ‘Three Criteria Test’ the MCA considers that:
- identified markets are no longer subject to the presence of high and non-transitory barriers to entry;
- the provision of wholesale transit services at a fixed public location in Malta is effectively competitive and is expected to remain so within the timeframe of this review; and
- competition law by itself is adequate to ensure that wholesale transit services are offered at competitive conditions.
The MCA concludes that ex ante regulatory intervention is not warranted in any of the identified markets. Existent regulation in the market for the provision of international transit services is to be withdrawn accordingly.
Submission of comments to consultation
Interested parties are invited to forward their comments to this document by not later than the 31st of August 2011. The extended consultation period takes into account the holiday period during the month of August.