Modernised 5G for Malta

The project concerns investments in the upgrade of the Promoter's mobile network with advanced 4G/LTE, early deployment of 5G, roll-out of fixed very high capacity (VHC) network as well as upgrades to the core network and the IT systems. The project implementation is planned for the years 2021 to 2024.

The Fiber to the Home (FTTH) access component of the project aims to cover the main villages of Malta with FTTH. The project's mobile component foresees deployment of the new generation equipment in order to benefit from the superior roadmap and performance as part of the 5G rollout strategy and plans. At project completion, the Promoter foresees a nationwide 70% coverage of 5G services.

The project contributes to the policy objectives of Innovation and Digitalisation. It concerns investments to upgrade the mobile telecommunications network and initiate the expansion of the fixed telecommunications network operated by the promoter in Malta. Investments in innovative telecommunications infrastructure face an uncertain business model due to significant investment costs in front of uncertain revenue flows, which leads to delayed availability of services with significant economic costs for the consumers. The project will accelerate the deployment of innovative telecommunication technologies and thus generate positive network externalities by enabling more users to benefit from improved and faster access to information and innovative digital services. The project also generates further externalities to other sectors of the economy by supporting innovation and competitiveness. These benefits are not fully captured by the project revenues. The promoter is experienced in the design and operation of telecommunication networks, being the first company offering mobile services in Malta. The promoter has an experienced management team and in-depth understanding of market needs and drivers, which will support project implementation, results delivery and address the market failures. The EIB contribution resides in the diversification, flexibility and positive signaling effect from the financing of thematic projects.

Investments in fixed and mobile telecommunications projects do not fall under Annex I or II of the EIA Directive 2014/52/EU amending the Directive 2011/92/EU. The systems have limited environmental effects, apart from disturbances during civil work constructions, which will be mitigated by appropriate measures.

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.