Ling-Stuckey welcomes Telstra

TREASURER Ian Ling-Stuckey says he is pleased that Telstra has announced the completion of its purchase of Digicel Pacific.
“This is a very welcome development,” he said yesterday following announcement of the acquisition by the Australian company.
“I have been in discussions with Telstra for over six months covering the regulatory approval process and ensuring that there will be better services for customers from this deal.
“This is another good outcome for our people.
“Specifically, in these discussions, Telstra has committed to increase its capital investment in towers across the country.
“An additional 115 towers will be built over the next two years to improve the reliability and coverage of the mobile network especially in rural areas.
“This is expected to improve the faster 4G network from covering 20 per cent of people to 80 per cent.
“Contributions through the Digicel Foundation will continue, with an estimated K14 million provided over the next two years.
“In terms of future tax revenues, Telstra have also committed to the removal of royalty deductions. Combined with increased dividend with-holding tax payments, we expect the sale will generate over K40 million extra in revenues every year.
“Some claimed that the new Additional Company Tax of K350 million on Digicel as part of the Government’s budget repair strategy would prevent the sale and hurt customers.
“The Government remains convinced about the appropriateness of this tax and will work through the processes to finalise this additional revenue.
“The completion of this purchase by Telstra complements further actions to improve services and lower prices for PNG customers.”