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EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf

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In most <strong>Pacific</strong> countries, like Samoa, the relatively high price of international calling<br />

cross-subsidizes the roll out of telecommunications services to more remote areas<br />

within the country, and helps to keep local calls slightly below the level of<br />

comparator countries.<br />

<strong>The</strong> international trend in mobile and international telephony has been that costs<br />

have fallen significantly with the introduction of competition. This has been the case<br />

in most Caribbean countries. Tonga is the only <strong>Pacific</strong> country with competition in<br />

the mobile sector. It also has the lowest mobile costs.<br />

Figure A.6: Internet Access Monthly Cost<br />

Internet total monthly price (US$ per 20 hours of use)<br />

100<br />

90<br />

80<br />

70<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

-<br />

Palau<br />

New Zealand<br />

Source: WDI Indicators 2003, Castalia Research<br />

Mauritius<br />

FSM<br />

Dominica<br />

Philippines<br />

Marshall Islands<br />

PNG<br />

Grenada<br />

St Kitts<br />

Timor-Leste<br />

St Lucia<br />

Fiji<br />

Samoa<br />

Jamaica<br />

Kiribati<br />

Tonga<br />

Vanuatu<br />

Solomon Islands<br />

Figure A.6 illustrates the monthly cost of internet access by comparing the typical<br />

cost of twenty hours of dial up access over the period of a month.<br />

<strong>The</strong> costs for internet access in <strong>Pacific</strong> countries are typically higher than those found<br />

elsewhere. <strong>The</strong> Solomon Islands has the highest monthly cost which is one reason<br />

for its low internet penetration levels. Fiji, Samoa, Kiribati, Tonga and Vanuatu have<br />

higher internet costs than most comparator countries.<br />

Despite their small market size Palau, Federated States of Micronesia and Marshall<br />

Islands have the lowest internet access charges. In Papua New Guinea, competition<br />

between ISPs has reduced internet tariffs. In Samoa, the introduction of competing<br />

ISPs resulted in a price reduction of 50% in the incumbent ISP and an increase in<br />

internet traffic of over 100% 32 .<br />

Quality<br />

Figure A.7 reviews the number of faults reported each year for each 100 fixed lines in<br />

service as an indicator of service quality.<br />

Of the countries reviewed, the Solomon Islands and Fiji perform best with less than<br />

10 faults reported per hundred mainlines. <strong>The</strong> Federated States of Micronesia<br />

performs less well with almost 50 faults per mainline reported. However, data on<br />

faults was unavailable for most <strong>Pacific</strong> countries and so this graph does not provide a<br />

complete picture.<br />

32<br />

Castalia interview with Grant McGough, Acting CEO SamoaTel in September 2004<br />

83

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