Hello, Vodafone’s coming

THE national government has secured a deal to bring Vodafone into the Papua New Guinea market – with the Independent Public Business Corporation owning 51% shareholding.
The deal was reached yesterday after two days of negotiations in Australia between repre­sentatives of the IPBC, Asian Development Bank, the PNG superfunds, Fiji National Provident Fund and Vodafone Fiji.
The negotiations were directed by Prime Minister Peter O’Neill and Public Enterprises Minister Ben Micah.
Vodafone is one of the world’s premier mobile phone operators with revenues of K130 billion, 405 million subscribers, 70 ope­rating companies and partner networks worldwide.
Industry sources said the deal also ensured that Vodafone would also enter the Solomon Islands market.
As previously announced by O’Neill, the deal means that the government and people of PNG, through the IPBC, will invest capital and increase its share in both bemobile PNG and Solomon Islands.
IPBC will become the majori­ty shareholder with 51%.
The FNPF, representing the workers of Fiji, will invest capital to take a 41% stake.
Existing shareholders inclu­ding Nasfund, Nambawan Super and PNGSDP will hold the remaining 8%.
It is understood that a total of K550 million of new investment will be injected into bemobile as a result of the deal, positioning bemobile as the largest future mobile telecommunications investor in PNG and Solomon Islands.
Vodafone Fiji will manage the companies under a management contract.
“This is an exciting development for the people of PNG and the Solomon Islands,” an industry source said.
“It will bring much-needed new investment into the telecom sector, stimulate competition in the market, and deliver to the people of PNG and Solomon Islands the benefits of the world’s premier mobile phone brand.
“The government should be congratulated for its wisdom and full commitment to this deal.”