Telco price set to reduce

 PRICES in the telecommunications industry are set to reduce substantially after an overhaul on the sector, according to PNG DataCo Ltd chairman Reuben Kautu.

He told Business Advantage PNG that the country was faced with vertically integrated structure under Telikom PNG.

Kautu said that had its disadvantages in a competitive and changing environment.

“The underlying objective of the government is to push competition across the retail telecommunications sector by upgrading, building, owning and operating the National Transmission Network and making it available to ICT operators at the wholesale level only. 

“This will eventually provide an effective wholesale infrastructure that is reliable and cost-effective for the people of PNG. 

“The Government … has already announced for PNG DataCo to partner with Interchange Ltd to build the Melanesian Cable, from Port Moresby to Vanuatu via Solomon Islands,” he said.

Interchange chief executive officer Simon Fletcher earlier said work on the construction of the Melanesian cable is progressing well and expected to be completed next June.

This followed a deal signed between PNG DataCo Ltd and the Vanuatu firm for the K182.2 million (US$72m) last October.

Fletcher said Interchange was positive on the project and commended the PNG Government in taking proactive role in connecting the Melanesian Spearhead Group nations. 

The proposed submarine cable would provide a new international connection from PNG through Solomon Islands, Vanuatu and Fiji and to international internet hubs in Sydney and or US via existing Southern Cross submarine cable system.