News of the planned acquisition by Monaco Telecom of Vodafone Malta for €250 million was announced by the latter in a statement just under a week before Christmas, on 19th December.

The announcement led to concerns by Vodafone staff members over their future with the company and doubts by customers on whether there could be service disruptions. While Monaco Telecom CEO Martin Peronnet confirmed that the company would not be bringing in anybody from Monaco, he did not commit against the shedding of staff at the Malta sight. 

Mr Peronnet met with members of the press at Vodafone Malta’s head offices, in Luqa to shed further light on the company and its plans for Malta.

Monaco Telecom is the incumbent telecoms operator in the Principality of Monaco, offering a comprehensive range of fixed, TV and mobile services. While it has a monopoly on fixed broadband services, Mr Peronnet stressed that Monaco Telecom is under fierce competition for mobile services.

The shareholders of Monaco Telecom are the Principality of Monaco and NJJ Telecoms, which also has a stake in telecoms operators in Cyprus, Ireland, and Switzerland.

Monaco Telecom CEO Martin Peronnet / Photo by Andrew Borg Carbott

NJJ Telecoms was founded by famous French billionaire Xavier Niel who has been credited with transforming the French telecommunications market. NJJ Holdings is currently present, through distinct companies, in Switzerland, Ireland, Senegal and Monaco. 

On Monaco Telecom’s second shareholder, the Government of Monaco, Mr Peronnet remarked that “we have a great balance between one of the best entrepreneurs of the telecoms business, and the stability of the commitment of one of the most stable governments in the world, Monaco”.

It has been asked what such a company can bring to the Maltese market, and why it would choose to enter into such a challenging marketplace given the limited size.

Mr Peronnet described the company as having two particular specificities, which he believes could be a good fit for the island.

“The first being that we are very technology and innovation oriented - probably because of our size, and the fact that we operate in one of the most high-end markets in the world – Monaco.

“This has pushed us to become a kind of showroom in terms of what’s best in telecommunications and trying to be the first to launch new things, especially in the mobile market,” he explained.

He described how, in July 2019, Monaco became the first country in the world with full 5G coverage, also available for commercial purposes.

“Secondly, we have developed long and important international experience and expertise. We have been present since 1997, and have invested in many international markets, offering broad services. We started with emerging markets such as Kosovo and Afghanistan.”

Mr Peronnet went on to explain that the company shifted its strategy to invest in high-end European markets that are of similar size to Monaco within the Mediterranean region.

“This strategy led us to invest in Cyprus and, now, in Malta”. 

Commenting on why Vodafone Malta was targeted, Mr Peronnet said that they have been scrutinising Malta’s market, together with their major shareholder, NJJ, when identifying the potential in operators of comparable size, especially in the Mediterranean.

“This is why Vodafone Malta was at the top of our priority list. This is why we acquired Epic in Cyprus almost one year and a half ago. This is why we have focused very much these last two years to be in a position to integrate these two markets,” he said.

Epic, known as MTN when it was acquired by Monaco Telecom, is the second largest operator in Cyprus. 

Shedding light on the motivation behind such a company strategy, Mr Peronnet described how they believe their operational model “is quire efficient”.

“I think we can help these companies to develop. We know that these companies need a lot of focus and attention. It is an opportunity for us because we understand maybe more than others the particularities of being a leading operator in a smaller market.”

Hoping to underscore his message, Mr Peronnet said that, in Cyprus, Monaco Telecom invested heavily on the network, “and we have changed the perception of the network to such an extent that the market share is growing quite fast”.

He emphasised that Vodafone Malta is perceived as a trusted network, and the plans are to focus on innovation.

With regard to the Vodafone Malta deal being finalised, he said “we are before completion and need final authorisation by the regulator. We are what we call between signing and closing.”

Mr Peronnet gave his assurance that services would not be disrupted or reduced, as, ultimately, the goal is for services to be expanded.

Video by: Andrew Borg Carbott