MESSAGE BY THE HON. CENSU GALEA, MINISTER FOR TRANSPORT AND COMMUNICATIONS ON THE OCCASION OF WORLD TELECOMMUNICATIONS' DAY

Each year on 17 May, the International Telecommunications Union (ITU) celebrates World Telecommunications Day to commemorate its founding in Paris in 1865. This year, the theme highlights the promises and the challenges of the Internet. One area that has certainly seen a positive upswing in the last year in Malta is the telecommunications sector. Recently published statistics by the National Statistics Office about the state of our Information Society reveal that Malta has experienced what can only be described as a telecommunications revolution. The Internet has not only transformed the way we communicate, but it has also dramatically changed the way we work, do business, interact, play, seek information and learn.

Thanks to the implementation of a well thought out comprehensive Government telecommunications policy under the stewardship of my Ministry, thousands of Maltese and Gozitans are now benefiting from lower tariffs and better service in this sector. Above all else the changes that are taking place in the telecommunications sector are contributing to the goal of creating a more consumer-oriented economy.

Even when one takes into consideration that the statistics available are sometimes still works in progress, due to data that is continuously being tabulated, there is no denying the dynamism of this sector. The most important indicator in the local scene is the considerable increase in the number of mobile phone subscriptions. In the twelve- month period from December 1999 to December 2000 an increase of nearly 400% was registered. This means that at the end of 2000, 29.1% of the total population owned a mobile phone compared to 6.3% at the end of 1999. Further impressive increases have taken place during the past five months.

Other sectors have experienced more moderate rates of increase. Satellite receiver licenses have increased by 74% during 2000 from 2697 to 4695, while internet subscriptions are up by 39% to around 35,000.

In a recent message, Mr Yoshio UTSUMI, Secretary-General of the
International Telecommunication Union asked what can the Internet do for those regions of the world that have only limited access to information and communication technologies? When resources are already stretched to the limit, can investment in the Internet be justified?

The promise of the Internet and all telecommunications is to broaden and enhance access to information through a service that can be reached anywhere in the world that has connectivity. The Internet is a way of lessening the traditional disadvantages of the developing world. It can offer businesses the possibility to "leapfrog" into the development mainstream by allowing them to sell their wares and services globally and directly to customers. Disadvantages such as distance from markets, difficulty in accessing export distribution networks could become things of the past. This is an immense advantage to developing regions such as the Mediterranean.

Further programmes should be developed to increase technology and computer skills among young people so as to build, from an early age, an Internet culture. Greater awareness of the benefits of on-line access to information, goods and services must be actively pursued throughout society and in particular in small and medium enterprises. These are only some of the challenges raised by the growing popularity of the Internet. But perhaps the most fundamental issue is to ensure that the Internet does not become yet another element in a widening "digital divide". This is one of the key issues on the agenda of the world community today. Turning the "digital divide" into "digital dividends" should be our main goal in the years to come.

In the PC sector Malta has already had a higher penetration rate than Greece, Portugal and Spain and is on level with Italy when compared to the EU-15 in 1999. When compared to the Central and Eastern European candidate countries during the same period Malta has the second highest penetration rate after Slovenia.

With the completion of the national plan for the liberalisation of the telecommunications sector, in the months to come, Malta will be well positioned on a level playing field with its European counterparts in the information age. As Malta moves closer to European Union membership, a state of the art telecommunications infrastructure will allow all of us to compete more actively for business and thus foster our prosperity.

When compared to the European Union fifteen-member states, the increase in 2000 has already moved Malta towards the EU-15 average. Malta is also well on track to outpace the other Central and Eastern European countries that are seeking EU membership.

The telecommunications revolution in general and the mobile phone increase in particular offers all of us a valuable lesson. All those that scaremongered that liberalization will result in a loss of jobs and the collapse of the telecommunications sector have been proven incorrect. In reality, the opposite has happened. By providing easy access and cheaper rates to mobile phone customers, over a third of the population of Malta and Gozo have already subscribed to this service.

The fact that so many individuals have decided to take advantage of the versatile services that mobile communications offer is a clear indication that given the chance, Maltese are quick to exploit new technologies to cope with the changing regional and international scene. It is this dynamic and forward looking approach that will guarantee a better standard of living in the global village that we live in today.

The main objective of the Government of Malta will continue to be management of a responsible process of further deregulation and liberalization in Malta. This policy of systematic privatization, deregulation and liberalization is a fundamental pillar of the transformation that needs to take place if Malta is to throw off the shackles of a protectionist past once and for all. This is also an essential step if Malta is to compete in the borderless world that we live in.

Given the opportunity, it is clear that Malta and Gozo are more than able to adapt to the changes that are taking place in the world. They are already starting to take advantage of the opportunities that a more open information society and economy has to offer. The real choice to ponder over on this year's World Telecommunications Day is whether we want to look forward to a more mobile Malta in the evolving global political economy in the years to come or else stop moving forward believing that no new heights could be achieved.

I believe Malta's only choice is that of achieving the highest level of competency and progress in all telecommunications sectors.