Comments

What predatory practice are you talking about?

Why is PNG government turning a blind eye on this very important matter?

Good job guys, at least an insight is presented. However, I am quite curious as to why a little less have opted for "experience" than "good policies".

I agree that the purchase is merely a move to counter China's emerging dominance in the Pacific. However, certain segments of its business such as the towers should be looked into for local acquisition

It's an interesting scenario, as I don't think Digicel even really use the coral sea cable as the cost to use it has remained too high for many of the retail ISPs, as it's controlled by the other monopoly, namely Dataco that controls the international cable gateway and the domestic cables. Digicel and some of the other Internet providers have committed to satellite providers. Dataco should be making access to international connections widely accessible and affordable, as promised with the largely grant funded Coral sea cable, but have a whopping debt to service with China Exim bank for the Kumul domestic submarine cable, which should be an amazing infrastructure, except its broken in a couple of places going into Lae, and its services remote provinces without much market, or rather much purchasing power to pay above minimum prices... Telstra is, of course a player in the Coral Sea cable, so it will be interesting how it plays its cards, as at the moment it's gained a very unrelated mobile system and technology. Digicel has spent a lot of money opening up the domestic market, today and regain a return on capital by fair means or perhaps foul, but then how does one break even on servicing the remoter centres. The other companies currently and invariably will focus on the more lucrative hubs. But PNG needs to keep the rural centres connected, they're so abandoned by all other public and private goods... but 2 disconnected monopoly type arrangements isn't the outcome needs, especially if both are teetering for various reasons. We had a 3rd company entering in 2007 (Greencom) but they promptly ran off when they saw how Digicel were flooding the place. VODAPHONE (version3)-Fiji Telekom will need to be v nimble to make a real mark, while Telstra will have to be very adept if they're to operate effectively in this new field... but I agree that various conditions - public service obligations - should at least be linked to this loan/grant...

Thought it would be cheaper. Digicel keep showing that they are not making any money. Too the problem with Digicel in PNG is that it is too expensive compare to other pacific nations like Fiji. But when asked, they say PNG is too mountainous, no roads, etc. Digicel makes no sense when compared to countries with similar environment to PNG.

Very insightful letter Anne Moorhead. It is a pity that the small operators working closely with local communities and families have had to suffer first. I hope you will all survive and bounce back with vigor once the pandemic passes. Suliana ( Waimakare Farm, Wailoku)

Hi Tess, it was a bit confusing for us as well. In that, even though the respondents are fairly educated, when it comes to factors that determine how they allocate/will allocate their preferences, the level of education of the candidate doesn’t feature prominently for the first (8%) and second (11%) preference. This sentiment is consistent with the results of the Port Moresby by-election. There were a few candidates with PhDs, and a former Chief Justice, who didn’t do well. Though the winner was a lawyer, there are other factors like association with PM’s party, being a local Motuan etc.

I hope poor network of digicel will improve in rural areas, its tough because quality service of mobile. ALL the best DIGICEL.

It's a win-win situation if Telstra is visionary, with a long term-view, instead of tempted by quick profits. Operating Digicel for the benefit of Pacific Islanders will win customer trust+loyalty for the long term, while still raking in healthy profits. There is no need for predatory practices which made customers resent Digicel. Vodafone Fiji is reviled for similar deceptive tactics, while the Consumer Council of Fiji naps. A study on how much Vodafone Fiji profits from this underhand practice is long overdue.

Indeed! Telephony is a dying industry as communication moves online so on the face of it a 1bn grant to a dying industry seems strange. If, as you suggest, the Government could leverage this investment to expand and subsidize the ICT infrastructure within the region it could then serve the dual purpose of being beneficial to the people of the region as well as relieving security concerns in Canberra. If, however, the company is left to its own devices this will be seen as a highly inefficient subsidy and might even have deeper legal ramifications in terms of international trade agreements - whilst doing little to alleviate the speed at which other nations are rapidly taking control of the regional ICT infrastructure.

I disagree with your opinion Stephen. I’m sure Telstra will do a better job in reducing internet prices and provide better and improved coverage to rural PNG. That is what we want in PNG.