Gibraltar
Internet And E-Commerce Facilities
After
the long awaited Gibraltar Telecommunications
Ordinance 2001 finally came into effect on
the 19th July 2001, and a regulatory authority
was set up, full liberalisation of the telecommunications
industry in Gibraltar led to a reorganisation
of the sector.
Until
2002, the two main Gibraltar telecommunications
companies, Gibraltar Telecommunications Limited
(GibTel) and Gibraltar Nynex Communications
Limited (Nynex), had been offering a range
of Internet services for some time, operating
a digital telephone system which was becoming
increasingly fibre optic, and providing ISDN
and leased lines from at least 64kb with sufficiently
large bandwidth for international users. The
local telephony service was operated by Nynex
under a government licence (the government
owned half the company) and the international
link, via the UK by satellite, was run by
GibTel which was a joint venture between the
Gibraltar government and British Telecom plc.
In mid-2000, Nynex sold its 50 per cent share
to BT so in practice both telecommunications
companies were 50/50 joint ventures between
BT and the Gibraltar government. BT's stake
was then acquired by Verizon Communications.
GNC
and Gibraltar Telecommunications International
Limited (Gibtel) were brought into common
ownership in 2001, and rebranded as Gibtelecom
in 2002. Gibraltar NYNEX Communications Limited
(GNC) changed its name to Gibtelecom Limited
as from 1 October 2003. Gibtelecom is now
a joint venture company owned jointly by Verizon
Communications of the USA and the Government
of Gibraltar. The Gibtelecom Group comprises
Gibraltar Nynex Communications (GNC), Gibraltar
Telecommunications International (Gibtel)
and GNC's wholly owned Internet services subsidiary
company, Gibconnect.
In
April 2007, it was announced that Telekom
Slovenije had completed its purchase of Verizon
Communication's 50% shareholding in Gibtelecom,
the main provider of telecommunications services
in Gibraltar.
Commenting
on the move, the Chairman of the Company,
and Minister for Heritage, Culture, Youth,
and Sport, Fabian Vinet stated that: “The
sale announcement brings to an end the speculation
concerning Verizon Communications Inc's exit
from Gibraltar as part of their strategy of
rationalising their world wide investments."
He
continued: “The Government looked forward
to the new partnership with Telekom Slovenije
and the two Companies working together in
continuing to advance technologies and deliver
world class communications in Gibraltar."
Vinet
went on to express the Gibraltar government’s
and the company’s appreciation “for
the instrumental part they and their predecessors,
Bell Atlantic and Nynex, had played in developing
Gibraltar’s telecommunications".
The
Telekom Slovenije group is the main telecommunications
provider in Slovenia, serving a population
of 2 million people with fixed line and internet
services, together with mobile services through
its subsidiary, Mobitel.
There
are a number of other ISPs of which Gibnet
Limited is one of the most prominent, offering
ADSL among other facilities. Many smaller
companies offer various types of support service
for site development.
Gibraltar's
main achievements in e-commerce so far have
been in the betting and financial derivatives
sectors, where a number of British companies
have re-located to take advantage of high-quality
telecommunications and Internet support from
the local operators. Victor Chandler has the
highest profile, but his is just one company
among many that have set up on the Rock.
In
May, 2005, PartyGaming Plc, the Gibraltar-based
e-gaming firm which owns the largest multi-player
poker room on the internet, announced a healthy
financial performance prior to its flotation
on the London Stock Exchange. PartyGaming
saw unaudited revenues of $602 million in
2004, deriving a profit before share option
expenses of $391 million.
The
company was subsequently dealt a blow by the
introduction of US legislation in 2006 effectively
banning online gambling involving US citizens.
However,
in March, 2007, the firm announced strong
growth in revenues and profits, as its decision
to focus on other markets began to pay off.
The
effects of liberalisation have been felt in
recent years as new players come into the
market, quality improves and the prices of
many services fall in real terms. The Government
says it views these developments as fundamental
for the growth and development of an Information
Society.
While
Internet services can be supplied from and
to virtually anywhere in the world an Internet
business based in Gibraltar will be able to
use efficient local specialist web site designers
and administrators providing a range of services.
