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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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