VALLETTA (WiMAX Day). After nearly two years since it was awarded a license for 3.5 GHz spectrum in Malta, Vodafone (Malta) Limited told WiMAX Day that it “will be launching WiMAX later on this year as planned.”

In October 2005, the Malta Communications Authority (MCA) awarded licenses to Vodafone (Malta) Limited, Cellcom Limted and Mobisle Communications. The licensees each agreed to offer WiMAX services, and at the time agreed they would launch “pre-WiMAX” services, and later upgrade to 802.16e standards.

However, in early 2006, two of the licensees requested an extension to their roll-out obligations, due to what they cited as delays in the standardisation of 802.16e, and the availability of certified equipment. The MCA granted an extension to all three operators. For Vodafone, the extension meant that 50% of its network should be deployed by April 2007, and 99% deployed by April 2008.

At the end of 2006, both Cellcom and Mobisle applied to the MCA for yet another extension of their obligations. Again, citing delays in certification of products and their availability, the two operators said that they did not expect to be able to obtain 802.16e certified equipment until 2008.

In January 2007, the MCA issued a public consultation that addressed the extensions, which would delay the two operators from deploying networks until October 2009. The MCA noted that such a delay “would inevitably have a significant negative impact on the market’s competitive landscape and therefore on the consumers.” According to a spokeswoman for the MCA, it is still evaluating responses to the consult, and a decision should be forthcoming.

A source at the European Commission believes the MCA will not allow further extensions for Mobisle and Cellcom, and an EC report noted last month that “the Commission has doubts on the absence of competitive constraints on the alleged tacit coordination between the two wholesale broadband providers, considering the upcoming establishment of BWA”.

It was also reported that the companies do not have a problem obtaining compatible WiMAX equipment, and according the EC report “in the case of Cellcom, this call for prolongation has been made, among other things, due to [competitive] conditions at retail level.”

Good news for Vodafone
With certified 802.16e equipment now becoming widely available, and WiMAX equipment vendors offering an easy upgrade path from “pre-WiMAX” equipment, it seems likely that Vodafone will achieve its roll-out obligations.

Many believe that WiMAX will gain a significant share of the broadband market on the tiny island of Malta. According to a recent report compiled by the EC, as of June 2006 broadband penetration in Malta stood at 12.9%.

With Cellcom and Mobisle unlikely to meet their respective launch obligations, this poses a distinct competitive advantage for Vodafone, and may very well make Vodafone the dominant WiMAX provider in Malta.