Gibfibre is dismayed about amendments made by the Government of Gibraltar to the Communications Act 2006 (the “Act”) to introduce restrictions on the grant of new radiocommunications licenses in Gibraltar.
The amendment to the Act prevents the issuing of any radiocommunications licence in respect of mobile public telephone networks in Gibraltar after the operative date (the “Amendment”). The effect of the Amendment, when it is given Assent and should it remain unchallenged, is to create a monopolistic environment within Gibraltar for Gibtelecom as the only existing active mobile network operator. Gibtelecom is currently owned and controlled by HM Government of Gibraltar. Two Government ministers currently serve as directors of Gibtelecom.
The Amendment was published as a Bill in the Gibraltar Gazette on Thursday 17 October 2024 and passed by the decision of Parliament on Thursday 24 October 2024.
Gibfibre notes that the Minister for Inward Investment, Sir Joe Bossano, told Parliament that it intended to “grant an exclusive license to a single mobile network operator in Gibraltar to ensure that we can continue to have a stable and reliable access to mobile services of the future.”
The measure appears to safeguard the market dominance of Gibtelecom, including by preventing potential new entrants, such as Gibfibre, from providing mobile telecommunications services to consumers in Gibraltar. The Bill has been published – and the Amendment passed – without prior consultation and appears to be aimed at limiting consumer choice and stifling healthy competition in this market for the benefit of Gibtelecom.
Concerns regarding competition and consumer choice
It is concerning that whilst in just about every European market, competition is encouraged by law to drive innovation, lower prices, and improve service quality, the Amendment appears to be steering Gibraltar in the opposite direction by constraining consumer choice in respect of an important local resource.
Without competition, the ability to set prices will remain concentrated with Gibtelecom. Going forward, innovation can occur only at the pace set by Gibtelecom in accordance with its own priorities, free from competitive pressures. Gibfibre believes that Gibraltar deserves freedom of choice and fairer pricing consistent with healthy competition. Any legislation proposing to restrict consumer access to a competitive marketplace is a significant step backwards.
Implications for Market Competition
There is, as far as Gibfibre is aware, no evidence in the public domain of any immediate plans for international operators such as Vodafone to enter the Gibraltar mobile telecommunications market. The presumed intention of the Amendment is to curtail the ability of local operators, including Gibfibre, to offer innovative and affordable services which could be highly beneficial to consumers.
Gibfibre has made no secret of its intention to move into the mobile market shortly. It has spent considerable time preparing itself to launch a mobile network offering, preparation for which has involved very significant costs and expense involving, for example, the employment of staff, acquisition of sites and offices, purchase of equipment, feasibility studies, completing town planning processes and site and network configuration.
Gibfibre fundamentally disagrees with the Government’s view that the Amendment is “essential for the telecommunications in Gibraltar to be able to keep on growing and keep on improving”. In Gibfibre’s view, the Amendment has been designed to prevent it from entering the mobile network business in Gibraltar and to ensure that Gibtelecom has a monopoly in this market.
Concerns about the legislative process
HM Government has prevented the Gibraltar Parliament from scrutinising the merits of the Bill given its anti-competitive impact on the telecommunications market in Gibraltar. It is of considerable concern that despite the matter being certified as urgent no proper basis for the urgency has been advanced.
Gibfibre is also concerned that such a significant amendment to the telecommunications framework has not involved a process of open dialogue with relevant stakeholders to ensure maximum transparency. Gibfibre considers that the new legislation may well be in breach of the constitution.
Fair Governance
It is right that the people of Gibraltar should expect the Government to act in the best interests of the public, promoting fairness and transparency. Regrettably, this Amendment appears intent on prioritising established market interests over broader competitive growth.
