EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
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Box A.2: Introducing Telecommunications Sector Competition in Tonga<br />
Local and international telecommunications services are provided by Tonga<br />
Communications Corporation (TCC). It also operates the ISP Kalianet and a GSM<br />
network U-Call Mobile, which launched in 1991. Shoreline Communications<br />
(TonFon) was awarded a license to provide mobile services and launched a GSM<br />
service in August 2002, providing mobile coverage across Tonga’s main islands.<br />
Within a year of introducing competition for mobile services, the tariff for almost<br />
all services dropped by more than 20% and the numbers of mobile subscribers and<br />
internet users both doubled. <strong>The</strong> result of competition has been that “telephones<br />
are easier to get, cheaper to buy and communication is faster”. It has also resulted<br />
in the two competing companies upgrading their infrastructures for further use in<br />
communications and broadcasting.<br />
In a speech in Geneva earlier this year, the Tongan Prime Minister emphasized<br />
that the country’s vision for ICT is driven both by local market parameters,<br />
recognition that the information economy transcends national borders and<br />
interests. Expanded connectivity in Tonga will help to stimulate domestic growth<br />
and greater participation in an international economy. This recognition has been<br />
an important driver of telecommunications market liberalization in Tonga.<br />
Source: Commonwealth Broadcasting Association Conference 2004, Nadi, Fiji.<br />
http://www.cba.org.uk/fiji18.htm<br />
Figure A.4 illustrates the level of internet use in <strong>Pacific</strong> countries compared with<br />
countries with similar levels of GDP per capita. <strong>The</strong> level of internet use in <strong>Pacific</strong><br />
countries is low relative to other parts of the world. In fact internet access has only<br />
recently become available to most of these countries. It was first introduced to Fiji in<br />
1995 and to some other <strong>Pacific</strong> countries as recently as 2000 29 .<br />
Figure A.4: Internet Users per capita vs. GDP per capita<br />
0.65<br />
Philippines<br />
0.6<br />
0.55<br />
0.5<br />
New Zealand<br />
Internet users per Capita<br />
0.45<br />
0.4<br />
0.35<br />
0.3<br />
0.25<br />
0.2<br />
0.15<br />
Jamaica<br />
Dominica<br />
Grenada<br />
St Kitts<br />
Source: Castalia<br />
0.1<br />
Mauritius<br />
Barbados<br />
Fiji<br />
St Lucia<br />
0.05 Vanuatu FSM<br />
Kiribati Tonga<br />
Marshall Islands<br />
PNG Samoa<br />
0<br />
Solomon Islands<br />
0 2000 4000 6000 8000 10000 12000 14000 16000<br />
GDP per Capita<br />
29 Internet access was introduced to Tuvalu in 2000. “<strong>Pacific</strong> Islands Regional Input Paper”, 2003,<br />
<strong>Pacific</strong> Islands Forum Secretariat (Asian Regional Conference for the <strong>World</strong> Summit on the<br />
Information Society)<br />
78