Business

Does Monaco Telecom buy local company for a quarter of a billion causes instability?

Vodafone has quite a name here in Malta. Up till a few weeks ago, its name was synonymous with a growing and very stable organisation which contributes to the Maltese economy, with a significant number of local customers. Many were indeed shocked to hear that Vodafone would be acquired by Monaco Telecom. Although Monaco Telecom is a strong organisation, many would feel that the departure of one of the globally leading telecommunications companies is a blow.

The acquisition is expected to be closed off at two hundred and fifty million Euro, by March. This will undoubtedly lead to some concerns as employees would be uncertain of the role that they hold, now that the new operator is taking over. This is coupled with the fact that Monaco Telecom has not provided a guarantee that it will retain all Vodafone employees. The CEO of the company, Martine Peronett, told journalists that employee retention would depend on the outcome of discussions and whether such employees would be part of the plan to make the organisation very efficient, independent and innovative.

It is understood that the regulatory process with the Malta Communications Authority is pending some finalities which are expected to be closed off by March. No major difficulties are anticipated considering that the company does not hold any other business in Malta.

When faced with questions by journalists, the Monaco Telecom CEO said that it was premature to provide detailed information. The company is not yet in a position to divulge whether it will be providing television services or revise its pricing structure. The emphasis made by the CEO is that the company aims to expand its footprint and they do not plan to achieve this by increasing prices. His message indicates that expanding the company’s footprint will mean that they have to be competitive.

It is also understood that Monaco Telecom will not be bringing its people over, which means that people living in Malta will be managing the company.

So, what do you need to know about the organisation?

Monaco Telecom is the main telecommunications company in Monaco. The company has two major shareholders. One of which is NJJ Telecoms which has interests in telecommunications organisations in Cyprus, Ireland and Switzerland. The second shareholder is the government of Monaco.

The CEO of the company highlighted that the telecommunications market in Monaco is a prime example. Something to back this fact is that Monaco Telecom became the first company to provide 5G across the whole region. He indicates that 5G also has an important role to play for Malta.

What do you make of all this? Is Monaco Telecom a step backwards? Let us know in the comments section below.

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