Aussie govt backs Telstra’s acquisition

Business
Penny Wong

TELSTRA Australia now owns Digicel Pacific’s operations in Papua New Guinea, Samoa, Fiji, Tonga, Vanuatu and Nauru, according to Australian foreign minister Penny Wong.
The acquisition was initially announced late last October following much speculation over whether Digicel would sell its Pacific arm, to help deal with the company’s debts.
For Digicel PNG, the Independent Consumer and Competition Commission gave the deal the go-ahead in February this year.
Then the National Information and Communications Technology Authority (Nicta) gave its approval in March.
In the other five Pacific Island countries where Digicel operates, the deal would have had to pass through various regulatory hurdles.
Australia’s minister for trade and tourism senator Don Farrell said the purchase of Digicel Pacific “sends a positive signal of business confidence in the Pacific region”.
The Australian government will provide Telstra assistance with foreign exchange.
Australian Minister for Communications Michelle Rowland, said that Pacific customers “will experience a number of social and economic benefits through improved telecommunications infrastructure”.
Dr Amanda Watson, a research fellow with the Department of Pacific Affairs at Australian National University, said in the immediate term, Digicel’s operations should continue without any obvious changes.
“Customers are unlikely to notice any difference.”