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

Competition
Pacific countries – like most countries in the world – have a history of monopoly
service provision. However, unlike the comparator countries, the region has been
slow to introduce private sector involvement and competition.
Pacific countries have mainly government operated telecommunications providers.
Competition is limited to the following countries and services:
Tonga – in mobile services and internet service provision
Papua New Guinea – in internet service provision
Samoa – in internet service provision
In Samoa, Telecom Samoa Cellular has an exclusive license to provide mobile
services. SamoaTel, the fixed line operator is employing GSM technology to provide
‘wireless local loop’ services to remote villages to meet their universal service
obligations. This use of mobile technology is being contested by Telecom Samoa
Cellular.
Where competition has been introduced, there appear to be benefits. The relatively
low mobile tariffs in Tonga and the fall in internet charges in Samoa after the
introduction of competing internet service providers indicate that these countries can
benefit from liberalization. The population size and the level of GDP in both Samoa
and Tonga is comparable to that of other Pacific countries.
Competition has not been introduced to international telecommunication services in
any of the Pacific countries reviewed. The experience in the Caribbean countries was
that market liberalization in this sector led to lower costs and improved service
quality, although local rates had to rise as cross-subsidies were removed.
85