Fear of losing ITok bundle forces Basil to reject Nicta’s Digicel advice

MINISTER for Communications Information and Technology Sam Basil has rejected recommendations to have Digicel charge a standard price for on-net and off-net calls.
The National Information Communication and Technology Authority advised him to have Digicel to charge the same rate for calls within its network as well as to subscribers from bmobile-Vodafone and Telikom. Basil decided against this as this would cause Digicel to remove the 1Tok bundle plans, which 2.4 million of its subscribers depended on.
“I acknowledge and thank Nicta for their extensive efforts in conducting public inquiry and reaching the final recommendation relating to the retail service determinations (RSD) dated July 25, 2018, on a particular mobile telephony service by Digicel PNG Ltd, which was submitted to me for my review and decision,” he said.
“During my review and consulting process, I also received a letter from Digicel PNG Ltd dated Sept 5 in which I was requested to ‘reject Nicta’s recommendation’ and ‘instead propose to Nicta that it accept a formal and binding undertaking’ which Digicel had proposed. The letter by Digicel had specifically indicated that ‘if the recommendation is permitted to proceed, it would force the removal of our most popular pricing plan, 1Tok bundle, right across the entire country. We believe that the removal of 1Tok would result in significant consumer harm and risk a strong backlash not only against Digicel but also against imposition of the RSD’’,” Basil said he was inclined to endorse Nicta’s recommendation but he was “mindful that Digicel commands a market share of over 90 per cent”.
“Many of these subscribers are from the rural, remote areas of Papua New Guinea who can ill-afford the costs of mobile telecommunication services which has been eased by 1Tok bundle,” he said.