Pacific Telecom Service Providers
Introduction
Historically the provision of
telecommunication services by monopoly operators is a universal phenomenon and the
provision of telecommunications services by monopolies in the Forum Island region is no
exception. This monopolistic nature of the telecommunications industry is most apparent in
the smallest of the Forum countries where the regulators are also the operators. Global
liberalisation, promoting competition, separating regulators from the operators and the
almost lightning pace of developments in telecommunications technology have had their
impact on the Pacific Island countries telecommunications industry.
Almost all the countries have
statutorised, corporatised and/or privatised their communication sectors except Nauru and
Samoa, although Samoa has privatised a small part of the cellular telephone local market
in a joint venture between government and Telecom New Zealand Limited and also has plans
to establish a corporation to take over the functions of the Post and Telecommunications
Department during the 1999/2000 period.
Organisational
Structures :Pacific Telecom Service Providers |
Country/Service |
Statutorised
Operator (Year) |
Corporatised Operator /Asset holding (Year) |
Privatised Operator (Year) |
| COOK IS |
|
|
|
All Telecommunication
services except Internet |
|
|
Telecom Cook
Islands Ltd (JV – Govt 40% Telecom NZ 60%) – 1989 (exclusive rights until 2001) |
| Internet |
|
|
1. Telecom Cook
Islands Ltd (JV)
2. Gateway Polynesia Ltd (P) |
| FEDERATED STATES OF
MICRONESIA |
|
|
|
| International, Domestic and Internet |
FSM Telecom Corporation – 1987 |
|
|
| FIJI |
|
|
|
| International |
|
|
Fintel (JV) Govt
51% and Cable and Wireless 49% - 1976 (exclusive rights) |
| Domestic and Internet |
|
Telecom Fiji Ltd – 1989 |
Telecom Fiji
Limited – 1998
Vodafone Fiji Limited (JV) Telecom Fiji and Vodafone Ltd –
1994 |
| KIRIBATI |
|
|
|
| International, Domestic and Internet |
|
Telecom Kiribati Limited – 1983 |
Telecom Services
Kiribati Limited
JV – Govt 51% Telstra 49% - 1983 (exclusivity of service
until 2005) |
| MARSHALL ISLANDS |
|
|
|
| International, Domestic and Internet |
|
|
Marshall Islands
Telecoms Authority – 1991 |
| NAURU |
|
|
|
| International, Domestic and Internet |
|
|
|
| NIUE |
|
|
|
| International, Domestic & Internet |
Telecom Niue 1989 |
|
|
| PALAU |
|
|
|
| International, Domestic and Internet |
Palau National Communications
Corporation – 1982 |
|
|
| PAPUA NEW GUINEA |
|
|
|
| International and Domestic |
|
Telikom PNG Ltd – 1996 (
exclusive licence up to 2001) |
|
| Internet |
|
Telikom PNG Ltd – 1996 |
Five Internet Service Providers |
| SAMOA |
|
|
|
| International and Domestic |
|
|
Telecom Samoa
Cellular (JV) Govt (10%) and Telecom New Zealand (90%) |
| Internet |
|
|
Samoanet (P) Lesamoanet
(P) |
| SOLOMON ISLANDS |
|
|
|
| International, Domestic and Internet |
|
|
Solomon Telekom
Company Ltd JV Govt (10%),SNPF(48%) C&W (42%) – 1989 (exclusive license up to
2003) |
| TONGA |
|
|
|
| International and Internet |
|
|
Cable and Wireless
– 1978 (Franchise agreement until July 2000) |
| Domestic |
Tonga Telecoms Commission – 1984 |
|
|
| TUVALU |
|
|
|
| International, Domestic and Internet |
Tuvalu Telecommunications Corporation
– 1993 (exclusive rights) |
|
|
| VANUATU |
|
|
|
| International, Domestic and Internet |
|
|
Telecom Vanuatu Ltd
JV Govt, C&W and FCR holding equal shares – 1989 (exclusive agreement until 2012) |
Statutorisation,
Corporatisation and Privatisation of Service Providers
Statutorisation is the creation of a statutory government body
or corporation by an Act of the Legislature. Corporatisation is the incorporation of a
separate entity that is fully owned by government under the corporate laws of the country.
Privatisation is partial or full involvement of the private sector in either or both
segments of the industry.
Part
1: Statutorisation (Creation of Statutory Bodies)
1. Federated States of Micronesia
The Federated State of Micronesia was one of the first
countries in the region to restructure its telecommunications Department into a statutory
body. It formed the Federated States of Micronesia Telecom Corporation which is a fully
government owned corporation responsible for the provision of all telecommunication
services for the State through the passing of a statute.
2. Niue
The Communications Act 1989 established Telecom Niue to operate
the domestic and international Postal and Telecommunications services. Telecom Niue was
also given the control and management of the frequency spectrum. New legislation is
proposed for the continuing liberalisation process by the corporatisation of Telecom Niue.
3. Palau
Palau statutorised all its telecommunications services in 1982
when it established the Palau National Communications Corporation by an Act of the Palauan
Congress. As the national carrier for local and international telecommunications services
the corporation, fully owned by government, took over what was the responsibility of the
Trust Territory Administration. PNCC is an autonomous public corporation, which is not
part of the national government and does not receive government grants.
4. Tonga
The Tonga Telecommunications Commission was established under
the provisions of the Tonga Telecommunications Commission Act 1984 to take over the
operation of domestic telecommunications services from the Telegraph and Telephone
Department. The Commission is part of government and has as members of its Board of
Directors the Prime Minister or Deputy Prime Minister and the Minister of Finance. As from
June/July 1999, the service provider will be corporatised, details of which will be
covered under "privatisation".
5. Tuvalu
Tuvalu Telecommunications Corporation was established under the
Tuvalu Telecommunication Corporation Act 1993. The corporation is the sole provider of
telecommunication services and has been given exclusive rights under the Act to install
and provide all telecommunications services in Tuvalu.
Part 2: Corporatisation
1. Fiji Corporatisation
Telecom Fiji Limited is a private limited liability company
formed in 1989 which is the provider of national telecommunication services in Fiji. The
licence given to TFL is exclusive over a 25 year period making it a monopoly operator over
this period. Fiji International Telecommunications Limited (FINTEL) also holds a 25 year
exclusive licence as the international telecommunication service provider in Fiji. The
Government of Fiji holds 100% share in TFL. In partnership with Vodafone UK, TFL has
formed a subsidiary company Vodafone Fiji Limited which provides GSM cellular mobile
telephone service under the licence of TFL by means of assignment of licence from TFL. TFL
holds a 51% share in Vodafone Fiji Limited.
2. Kiribati Corporatisation
Kiribati Telecommunications was liberalised with the formation
of two companies Telecom Kiribati Limited and Telecom Services Kiribati Limited. Telecom
Kiribati Limited is fully government owned and Telecom Services Kiribati Limited is a
privatised company which will be dealt with under privatisation. Telecom Kiribati Limited
is the asset holding company which collects lease fees from the operator for the use of
Government aid funded facilities and also advise Government on matters of regulation.
3. Papua New Guinea
Corporatisation
Telikom PNG Ltd is a public telecommunications network operator
and service provider that is 100% owned by government. Telikom PNG Ltd which was
established in January 1997 has been given exclusive rights to provide all
telecommunications services including value-added services until the year 2002. Mobile
services is provided by Pacific Mobile Communications which is a wholly owned subsidiary
of Telikom PNG Ltd. Operational and regulatory functions have been separated in Papua New
Guinea in a new regime established in 1996 with PANGTEL an independent regulatory body
that is not accountable to a network operator or service provider. Exclusive rights to
provide telecommunications in Papua New Guinea has been given to Telikom PNG Ltd to allow
the company to gain experience and establish itself in the industry before the market is
opened up to competition.
4. Samoa Corporatisation
The Samoan Government has clearly stated in its Statement of
Economic Strategy 1998/1999 its intention to liberalise its telecommunication services and
plans to corporatise in June/July 1999 its services that have not already been privatised.
Part 3: Privatisation
The privatisation of telecommunication services in the Pacific
Islands Forum region is in its infancy and is being realised mainly through gradual
partial private sector involvement with government control being maintained in the
provision of basic services whilst the newer services such as cellular and internet
services are being privatised. Partial privatisation therefore exists in various degrees
in different segments of the industry in the Cook Islands, Fiji, Kiribati, Marshall
Islands, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu. The Federated States
of Micronesia, Nauru, Niue, Palau and Tuvalu have yet to introduce privatisation of
telecommunications. Full privatisation of particular segments of the industry occurred
with the early Cable and Wireless franchise agreements some of which are still in
existence.
1. Cook Islands Privatisation
The Cook Islands privatised all its telecommunication services
with the establishment of Telecom Cook Islands in 1989. Telecom Cook Islands Limited,
established in 1991, is a joint venture between the government of Cook Islands and Telecom
New Zealand. The shareholding of Telecom Cook Islands is divided between the Cook Islands
which has a shareholding of 40% and Telecom New Zealand owning 60% of the company.
2. Fiji Privatisation
In 1998 the Government of Fiji had proposed to privatise its
share in the industry by selling 49% of its total share preferably to an overseas
strategic partner. In this privatisation process the Government had also proposed to
create a holding company [Amalgamated Telecommunication Holding Limited (ATH)] under which
Telecom Fiji Limited (TFL) and Fiji International Telecommunication Limited (FINTEL) will
operate and establish an appropriate regulatory structure for the restructured sector. The
new regulatory framework will comprise the institutionalisation of an independent
regulator to be called the Telecommunication Authority of Fiji (TAF). The Government holds
100% share in TFL and a 51% share in FINTEL (the remaining 49% being owned by Cable &
Wireless Limited). In December 1998, the Government had finally approved the sale of 49%
of its share in ATH to the Fiji National Provident Fund (FNPF).
3. Kiribati Privatisation
Telecom Services Kiribati Limited is the operator of
telecommunication services in Kiribati and is a joint venture between the Kiribati
Government holding 51% and Telstra owning 49% of the shares.
4. Marshall Islands
Privatisation
The Marshall Islands National Telecommunications Authority is a
private corporation with significant ownership by the National Government that was
established in 1987. It is the authorized provider of all telecommunications services for
the people of the Marshall Islands.
5. Niue Privatisation
Niue has privatised its internet top-level domain name (NU) to
a European firm.
6. Papua New Guinea
Privatisation
The provision of internet services in Papua New Guinea is
privatised with the involvement of five internet service providers.
7. Samoa Privatisation
Samoa has partly privatised with the introduction of private
sector involvement in the operation of a restricted cellular phone service by Telecom
Samoa Cellular Company Limited a joint venture between the Government of Samoa holding 10%
and Telecom New Zealand Limited holding 90% of shares. The provision of internet services
is fully privatised with two service providers serving the market.
8. Solomon Islands Privatisation
The Solomon Telekom Company Limited was established in 1989
when all the telecommunications services were privatised. The company was originally a
joint venture between the Solomon Islands Government owning 58% and Cable and Wireless
owning 42%. In May 1999, the Solomons National Provident Fund acquired from
Government’s sharing 48% of the joint venture. Therefore, the current shareholding of
Solomon Telekom Company Limited is: Solomon Islands Government (10%), Solomon Islands
National Provident Fund (48%) and Cable and Wireless (42%). The company has been given an
exclusive licence to provide domestic and international services for the Solomon Islands.
9. Vanuatu Privatisation
The privatisation arrangement in Vanuatu reflects its
condominium past with an entity that is divided three ways between the Government of
Vanuatu, Cable and Wireless and France Telecom. Telecom Vanuatu Limited was established in
1992 and given an exclusive license to operate all telecommunication services until the
year 2012 with Cable and Wireless and France Telecom taking turns in providing the General
Manager.
10. Tonga Privatisation
Tonga Telecommunications will be privatised by registration
under the Companies Act 1995 of a company called the Tonga Communications Corporation
(TCC). TCC will be majority government owned operating domestic services and will be
looking for a foreign investor to participate in the corporation. The Minister under the
new Communications Act 1999 will be required to implement a participation scheme whereby
10% of the issued shares of TCC will be made available for sale to local and overseas
Tongans. International services continues to be provided by Cable & Wireless until the
middle of the year 2000 when it will be taken over by TCC.
11. Tuvalu Privatisation
Tuvalu has privatised the registry of its top-level domain name
to a Canadian firm.
Part 4: Privatisation and
Multinationals
Cable and Wireless was the first multi-national
Telecommunications operator to pioneer the privatisation of Telecommunication services in
Pacific Island Forum countries when it entered into franchise agreements to provide
international telecommunication services with the governments of Cook Islands, Fiji,
Solomon Islands and Tonga in the late 1970s. It continues to operate in Fiji, Solomon
Islands, Tonga and Vanuatu. Telecom New Zealand’s presence is through its
arrangements with former colonial territories of New Zealand, Cook Islands and Samoa and
is reported to be moving into the Fiji telecommunications scene. Telstra has a management
arrangement only with Kiribati. Telecom Fiji has a joint venture arrangement for cellular
phone services with Vodafone Limited and the Fiji Government has also attracted the
Israeli telecommunications operator, Telrad, to set up a telephone company in Fiji to
compete with Telecom Fiji Limited.
Sources: Kolone Vaai & Associates
Vaai Law
GETIT
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