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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and there have been calls to reconsider the Fiji Telecom offer once again. This remains a<br />
hotly debated issue.<br />
<strong>The</strong> majority privately owned or controlled providers are:<br />
Marshall Islands: Citizens of the Marshall Islands own 75% of the incumbent<br />
operator, with individual shareholdings are limited to a maximum of 3%<br />
Samoa: Telecom Samoa Cellular is a joint venture between the Government of<br />
Samoa and Telecom New Zealand, which owns 90% of shares. Two competing<br />
private ISPs Samoanet and Lesamoanet operate off an internet backbone<br />
operated by Samoa Communications limited<br />
Solomon Islands: Solomon Telekom Company is a joint venture between the<br />
Solomon Island National Provident Fund, which holds 51% of the shares, Cable<br />
and Wireless with a 41.9% shareholding and the Investment Corporation of the<br />
Solomon Islands, which has 7.1% of the shares. Cable and Wireless has an<br />
exclusive operating license. <strong>The</strong> original 15 year license period was extended for<br />
another 15 years in 2003, and is up for review in 2008<br />
Timor-Leste: Almost all communications were destroyed in Timor in 1999.<br />
Public telecommunications services are being re-built under a 15 year Build<br />
Operate Transfer (BOT) arrangement with Timor Telecom and Portugal Telecom<br />
International awarded in 2001. In 2003 the Timor Telecom network provided<br />
nationwide voice and internet services covering Dili and twelve District capitals.<br />
Under this contract uniform tariffs apply across the country. <strong>The</strong> contact specifies<br />
that Timor Telecom must provide service at the same cost countrywide. Public<br />
and private institutions can build and operate their own networks based on<br />
satellite phones, but these may not be resold or offered publicly<br />
Vanuatu: <strong>The</strong> privatization arrangement in Vanuatu reflects the country’s<br />
condominium past with the shareholding divided three ways between the<br />
government, France Cable and Radio and Cable and Wireless. <strong>The</strong> latter two take<br />
turns to provide the General Manager.<br />
Cable and Wireless was the first international telecommunications company to pioneer<br />
privatization in the <strong>Pacific</strong> Islands Forum Secretariat countries when it entered into franchise<br />
agreements to provide international telecommunications services to the Cook Islands, Fiji,<br />
Solomon, Tonga and Vanuatu in the late 1970s. It continues to operate in Fiji, Solomon<br />
Islands and Vanuatu.<br />
Regulatory<br />
<strong>Pacific</strong> telecommunications companies are regulated by the Telecommunications Ministry in<br />
most countries. Only three countries have established an independent regulator. PANGTEL<br />
in Papua New Guinea was established in 1996 and has responsibility for establishing<br />
performance and technical standards, approving guidelines for carriers and monitoring<br />
compliance with license conditions.<br />
In Timor-Leste a legislative framework has been established and an independent regulatory<br />
body the Communications Regulatory Authority (ARCOM), created to regulate Timor<br />
Telecom. <strong>The</strong> BOT contract sets out the contractual conditions for the operator and tariffs<br />
are revisited regularly in negotiations between the regulator and operator. However, there is a<br />
need to strengthen the capacity of the regulator.<br />
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