The Association for Consumer Rights Malta is concerned that the planned acquisition of Epic by Melita could lead to higher prices and reduced quality of service in the sector, as only two companies would be left operating within the market.

Maltese telecommunication operators Melita Limited and Epic Communications Limited earlier this week announced that they have entered into an agreement to combine their operations. The proposed combination of the two companies, pursuant to which Melita will acquire 100 per cent of the shares of Epic, remain subject to merger control and other regulatory approvals.

Meanwhile GO, the third operator in the sector, has raised concerns over the potential impact of acquisition.

Talking to WhosWho.mt, President of the association Pauline Azzopardi said that the association is not against the acquisition per se if Epic’s owners, Monaco Telecom, wants to leave Malta, as selling the business instead of closing it down would protect jobs, but the association wants the relevant authorities to ensure that consumers are protected.

She listed a number of concerns, stemming from the reduction in the number of sector operators from three to two that this acquisition would result in. Among the association’s concerns is the possibility of higher prices in the future, and concerns about there being less of an incentive for the remaining companies to compete which, she said, could result in fewer discounts or bundle offers.

“Another worry would be over quality and innovation, in terms of quality of service and customer service,” or over their willingness to improve network coverage for example, she added.

The reduction in operators could also affect pricing behaviour of the two remaining providers, she said, while also questioning whether this would impact any new competitors who might want to enter the market at a later date if, for instance, costs related to switching providers would be raised. This, she adds, would also make it more difficult for people to switch provider.