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14 BUSINESS & FINANCE maltatoday, WEDNESDAY, 25 SEPTEMBER 2013 Tasting the tantalising 4G experience I George Mangion t all started with the launching of the iPhone 5 smartphone model by Apple Inc. It proudly uses the enhanced 4G bandwidth now widely available in the US. Like a bolt from the blue the media world is agog with the excitement of more Apple model releases which can benefit from this technology. It is no surprise that Apple, hot on the heels of launching the iPhone 5s and 5c, recently sold nine million sets in the first three days. Simply put the new 4G wireless operates with much better interactivity, thus giving more power for users and opening other untapped possibilities. This ushers in the world of digital wonderland. The exciting challenge is currently surfacing in a big way in the European Commission, which has finally approved clear technical rules for regulating charges by the telecom industry. It is now up to the telecom companies in Europe to wake up to the challenge. For example, the race to be Ireland's first mobile 4G operator looks set to be decided between Vodafone and Meteor, quoting senior telecoms figures. Both networks will launch this year – in late September or early October. However, it has emerged that O2 may not launch its 4G services until 2014. Imagine the typical Maltese user on the go, with car keys in pocket, saddlebag packed, smartphone in hand and off to work. This is the start of a typical day, with locals using their smartphones along their daily commute, enjoying all media, which makes us eligible to join other Western countries in this technologically savvy world. It is a pity that while more users in Europe are tuned to smartphones running on 4G technology, our telecom companies are still offering 3G, while struggling to feature the full 4G LTE service. Internet speeds on the fourthgeneration LTE network are 5-to10-times faster than on 3G networks (depending on the country and carrier), with the added inconvenience of averaging 13 minutes to download a movie onto a 3G smartphone – cut to about 2.5 minutes. There is then the bonus of the commercialisation of all the services and accessories to complement these phones, making them a hot topic of competition among most electronic and mobile conglomerates. This prompts the question, is the Maltese telecom regulator ready to make a giant step to upgrade the bandwidth to the next level, enriching the experience of users? Some may reply in the negative, blaming the limitations of the subscribers in the local market willing to pay in order to take the next big leap in technology. The fastest mobile speed available today in Malta can reach around 43Mbps over 3G, yet this is not available everywhere and subscribers have to be pay extra for this speed. By comparison LTE provides speeds of 100 Mbps that support more dataintensive services such as high-quality video, music streaming, mobile commerce and mobile health services. It is a bonus for the expanding remote gaming industry, employing thousands. Customers can also expect faster response times, making interactive gaming and video conferencing available through mobile broadband. In this way consumers who have paid a premium to acquire a 4G device will be able to simultaneously use mobile internet without compromising speed. One hopes that no stone is left unturned for the island to quickly catch up with the rest of Europe. The Malta Communications Authority (MCA), which is in charge of the mobile licence process, announced that the new licences for three main players in the market would be issued "in the coming months". In this context, the MCA has an important role to ensure that a sufficient spectrum is made available at reasonable fees and that regulatory and planning rules are kept to the extent necessary to protect basic societal requirements. It is true that the introduction of the "cool" 4G wireless takes us on a long journey, as it involves a heavy investment. The question one may ask is, how viable is it for a miniscule market to afford the so called "luxury" mobile service when financial times are hard? Quoting Vodafone Malta head of technology Andrew De La Torre, "We will launch LTE when there will be a sufficient choice of devices and compelling services that will enable our customers to really benefit from 4G technology". At present, most high-end smartphones – such as Apple's iPhone 5, the HTC One hopes that no stone is left unturned for the island to quickly catch up with the rest of Europe. The MCA, which is in charge of the mobile licence process, announced that the new licences for three main players in the market would be issued "in the coming months" One or Samsung's Galaxy S4 – are all 4G-enabled. Local firms are still waiting for permits to obtain frequency assignments in both 900 MHz and 1800 MHz bands, which are essential to provide 4G to the telecom service. It is a fact that the Maltese market is saturated and competitive pressures are, if anything, getting even worse. Go's profit before tax during the first six months of 2013 was down to €8.3 million. The comparable figure for 2012 was €20.4 million, which, however, reflected an exceptional gain of €11.4 million attributable to a one-off property sale. Turning to Vodafone Malta, at its headquarters in London, it appreciates fully the 4G wireless advantages such that it plans an early introduction in the UK by joint partnership with O2. These two players will continue competing in the British market, but they decided to cooperate and pool costs of the infrastructure. The partnership, called Cornerstore, may be a godsend, as it will allow smartphone owners to fully use the internet options in their phones at the same speed as home devices. The question is whether Vodafone is ready to provide a similar solution in the short term in Malta. Marriages made in heaven can succeed on earth, but can we ever contemplate a joint venture among two of the three competitors? The logical question that follows is whether the local market (including 1.6 million tourists) is big enough to justify 4 G. MCA is the governmentfunded agency responsible to regulate telecommunications; it has declared that wireless communication is an inherent part of life, where surfing the net, phoning and texting are essential and basics services. The MCA is convinced that there is no other alternative in these modern times than to replace old technologies by 4G. Perhaps in the not-so-distant future it will announce the launch of new spectrum licences, as nobody can halt the internet bandwidth revolution, and in the meantime consumers continue to buy smartphones – yet are unable to use their full potential due to lack of the ultra-fast broadband. The launch last week of two new Apple iPhone 5 smartphones and others that will soon follow from Samsung and HTC, which all run on 4G and will soon be on sale locally, means that owning such phones without using their full potential is a waste of time and money. Melita predicts that 4G could be efficient and attractive for smartphone users, but it needs sufficient elbow room to evolve from present 3G technology into 4G. In this regard, It would be possible only when "at a time when such technologies have evolved to the point they are technically robust, widely supported within handsets and data devices and, most importantly, affordable" (from Melita in The Malta Business Weekly). The regulator should start showing its initiative to accelerate the changeover. It can do this by convincing the private sector to cooperate in this risky but desirable venture. The practical way forward is to choose between two suitable investment and operational models. The first is called "a private design, build and operate model", which assumes that state funds or assets will be made available to the private investor to assist in the deployment of the new network. The second option is to set up the joint venture, where the ownership of the network would be split between government and the private sector, with the construction and operational functions undertaken by the private sector. If service providers team up and choose any of the two proposals, then following a formal approval by the regulator, this will speed the way for new exciting times when consumers can enjoy 4G pleasures at an affordable price. Let us pray Eve will tempt Adam to take a bite of the apple that next year will open the floodgates for an exciting digital wonderland.

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