No company will now be able to apply for a Telecoms licence.
This follows a bill passed in Parliament by the Government, who are the 100 percent shareholders in Gibtelecom.
Minister Sir Joe Bossano said this was designed to protect consumers in a small market, and did away with EU legislation which did not suit Gibraltar.
The bill was tabled as urgent, so that companies could not apply for a licence during the usual six week publication notice.
But the Opposition abstained from voting on the bill, saying it provided a blanket monopoly for Gibtelecom.