Mobile Network Competition Row Erupts on Gibraltar

The HM Government of Gibraltar, which is a British overseas territory on Spain’s south coast, appears to have triggered a competition spat with the privately owned broadband operator, GibFibre, after it made amendments to the Communications Act 2006 that could create a “monopolistic environment within Gibraltar for Gibtelecom” (the state-owned mobile operator).

GibFibre states that the amendment to the Act would prevent the issuing of any radiocommunication’s licence in respect of mobile public telephone networks in Gibraltar after the operative date, which the operator claims would “create a monopolistic environment within Gibraltar for Gibtelecom as the only existing active mobile network operator.” Two Government ministers currently serve as directors of Gibtelecom.

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.” But GibFibre clearly fears it would also prevent new entrants, such as themselves, from setting up mobile services for consumers on the rock.

GibFibre Statement

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.

The Communications Act 2006 itself was originally designed to transpose the European Electronic Communications Code (EECC), an EU-derived measure which Gibraltar was then required to implement. But the government of Gibraltar argues that many aspects of this law are “no longer suitable for a small jurisdiction like Gibraltar” and they instead want to adopt a similar approach to those seen in other small jurisdictions, such as Andorra and Monaco, or the Falkland Islands.

Statement by the HM Government of Gibraltar

As further announced in Parliament, one of the changes which the Government intend to make is to grant an exclusive licence to a single mobile network operator in Gibraltar, to ensure that we continue to have a stable and reliable access to mobile services for the future. Hence the need for the paving Bill introduced in Parliament last Thursday.

All this was explained during the course of the debate in Parliament.

Further, there is is absolutely no question of the legislation as drafted being incompatible with the Constitution.

The Government of Gibraltar, Gibraltar Savings Bank, and taxpayers collectively hold a substantial investment in Gibtelecom, amounting to tens of millions of pounds, supporting 142 local jobs. GibFibre employs less than 15 Gibraltarians.

In making public statements, GibFibre has an obligation to ensure that information provided is accurate, complete, and balanced.

Gibtelecom has a long-standing presence in Gibraltar, has never shied away from fair competition and continues to compete fairly in the market. Most recently, the Supreme Court of Gibraltar dismissed a Competition law claim against it by GibFibre.

However, equally, it is crucial to ensure that competition is conducted on a level playing field. As the Chief Minister highlighted in Parliament, Gibtelecom operates within legal boundaries offering legitimate satellite services, and does not rely on unauthorised or pirated services to attract consumers. Such practices would distort the market, undermine legitimate business and ultimately harm consumers, who may be lured by unsustainable offerings that could jeopardise the reliability of services offered.

The Government remains committed to lawful, reliable, and high-quality service provision for the benefit of all Gibraltar residents.

The final reference to “unauthorised or pirated services” is interesting, and we believe it’s a reference to a separate dispute, which saw Gibtelecom file a lawsuit against rival GibFibre. Gibtelecom claimed that GibFibre (inc. sister company GibSat) was illegally providing English language TV services without a licence (here). Prior to that, GibFibre and Gibtelecom were also engaged in a dispute over access to crucial data centres in Gibraltar.

Suffice to say that there’s no love lost between these two, although it’s also important to remember that Gibraltar is a small territory and one that is rarely out of the news, not least due to the endless disputes over sovereignty with Spain.