Gibraltar Government Considers Next Move In Telecoms Dispute

by Amanda Banks, Tax-News.com, London

12 August 2002

The Gibraltar government is considering its next move with regard to the telecommunications dispute currently raging between Spain and the Rock.

During the Anglo-Spanish negotiations over the sovereignty of Gibraltar, Spain offered to assign an additional 70,000 telephone numbers to Gibraltar which can be used from Spain, although under the code +34 8563, rather than under the internationally recognised +350 code assigned to the jurisdiction following the introduction of International Direct Dialing.

However, the government last week rejected the proposal, arguing that the offer would place full control over telephone numbers in Gibraltar in Spanish hands, would exclude the Rock's authorities from playing a role in the granting of numbers, and would allow the Spanish firm Telefonica to become the effective telecommunications regulator for Gibraltar.

In a statement, the Gibraltar authorities announced that: 'The Government have previously confirmed that the Spanish offer which purports to allocate an additional 70,000 telephone numbers to Gibraltar is unacceptable. It is commercially unacceptable to the telephone companies, unacceptable for statutory and jurisdictional reasons to the regulator and unacceptable for all of these and additional reasons to the Gibraltar government.'

The government then revealed that it intends to consult the Opposition and various representatives from key sectors of the economy over the next few weeks.

One possible solution which has been raised is the allocation of the 0044 UK code to Gibraltar. However, it is thought that this would be problematic to implement, as OFTEL, the UK's administratory body, has no remit in Gibraltar.

It is also likely that other British operators would reject the proposal, due to the competitive edge which would be afforded by the absence of VAT in Gibraltar.

Recommended