Probe on high internet costs


THE high cost in maintaining information and communication technology infrastructure in the country is one of the causes of the high internet costs in Papua New Guinea, according to a report.
Deloitte, which put together the report titled “Internet prices in PNG” also identified aging and costly maintenance of infrastructure as factors contributing to the high internet costs. Deloitte manager Todd McInnis said the high internet cost was having an enormous impact on national development.
“In regards to infrastructure, as everyone in this room knows, it’s costly to do business in Papua New Guinea due to a number of reasons,” he said.
“Infrastructure maintenance cost in PNG are enormous. This is a direct impact to higher prices. Every participant in the internet market is all too aware of high costs of maintenance facing them.
“Another issue is reliability – or the lack thereof.
“While not directly impacting prices, it all contributes to a higher cost environment which obviously leads to higher prices.
“Another key important point also is offshoring.
“The majority of the websites in Papua New Guinea are hosted offshore.
“It means that if you click on a web link, the signal will actually travel from the ISP to an offshore provider.
“This makes it more costly. While all of these happens in nano seconds, it’s expensive.” He said other factors included wholesale, retail and competition, regulation of the sector and others that fall under PNG specific issues.
“The reason we have summarised those in the five issues is to make a point that it is a holistic system.
“The internet market is a system. You can’t look at one issue without looking at the other.”

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