Gibfibre calls on Govt to engage in constructive dialogue over ‘deeply disappointing’ law change

Local telecoms company Gibfibre has called on the Gibraltar Government to engage in constructive dialogue, after it hit out on the new law barring businesses from entering the mobile network space.

The statement from Gibfibre is the latest in a tense exchange on the Government’s decision to amend the Communications Act 2006 to prohibit new licences for mobile phone operators.

At the time the law drew flak from the Opposition in Parliament, with GSD members abstaining from voting on the Bill, which was passed by Government majority.

Last week the Government said it remained committed to lawful, reliable, and high-quality service provision for the benefit of all Gibraltar residents, adding Gibtelecom continues to compete fairly in the market.

But on Tuesday, Gibfibre said the new legislation threatens the integrity of Gibraltar’s business environment, potentially opening the door to “monopolistic practices” in the telecommunications sector or any other sector.

The telecom company sent a seven-point response to the Government, insisting the new law obstructs fair competition.

Gibfibre also took issue with the Government statement that taxpayers collectively hold a substantial investment in Gibtelecom, amounting to tens of millions of pounds, supporting 142 local jobs, while it said GibFibre employs less than 15 Gibraltarians.

The company responded that the Government had “self-servingly downplayed” Gibfibre’s economic contributions.

“Gibfibre directly employs a significant and sizeable workforce, all of whom contribute to Gibraltar’s economy – numbers that would have increased if not for the Government’s legislative actions, which have effectively blocked Gibfibre from securing the radiotelecommunications license essential to launching its mobile service,” the company said.

Gibfibre added that it had invested millions into developing an innovative telecommunications alternative for Gibraltar, without any reliance on taxpayer support.

“It is therefore deeply disappointing that the Government has obstructed Gibfibre’s mobile service launch, apparently to shield Gibtelecom from open competition,” Gibfibre said.

The company said it has played an important role in Gibraltar’s technological advancement in the internet broadband sector, notably through its fibre-to-the-home broadband services, which had created local jobs and driven market innovation in this sector.

According to Gibfibre, the company had modernised the local broadband sector and reduced prices significantly, adding it believed the Government had moved to prevent similar advancements in the mobile telecommunications sector.

“Gibfibre notes that the Government’s statement fails to properly address Gibfibre’s concerns as to the reasons behind its decision to proceed with the amendments to the Communications Act at such speed, and to forego the six-week review period,” the telecoms company said.

“Gibfibre remains firmly of the view that the Government has pushed this legislation through with manufactured urgency aimed at undermining Gibfibre’s proposed mobile network which it was fully aware of.”

“Furthermore, Gibfibre notes the Opposition’s concerns regarding potential conflicts of interest, given that two Government ministers currently sit on Gibtelecom’s board, and the Chief Minister himself formerly served as Chairman.”

The company added the Government should to uphold its duty to foster a competitive market in Gibraltar.

Gibfibre said it had invited the Government to engage in a constructive dialogue aimed at creating a “fair, diverse, and innovative” telecommunications landscape that benefits consumers.