Telcos must have clear functions

 PRIME Minister Peter O’Neill announced at the recent Leaders’ Summit that the Government would launch the National Transmission Network (NTN) in Mt Hagen when the missing link fibre optic connection is completed. 

This was a major announcement because it would see a significant drop in internet cosst after Papua New Guinea is one of the countries with very high internet rates. 

However, O’Neill may first need to clear the air on the transfer of the PPC -1 submarine cable before the NTN launch. 

This is important because Telikom PNG Ltd cannot retain ownership of this critical asset when DataCo NTN is launched as internet rates or cost will not change. 

Under the reform, Telikom was supposed to concentrate on retail communication services and relinquish wholesale assets, including PPC-1, to DataCo. 

The Government gave Telikom US$230 million from the Exim Bank loan to rebuild its ailing retail telecommunications services. 

I am surprised that Telikom is very complacent with such money after more than two years. 

To date there is no substantial outlook of what is supposed to be the new Telikom. Even its High Capacity Network (HCN) microwave link only connects Lae, Madang, Port Moresby and Hagen with only 3gigabytes capacity, which is much lower than the present demand of 8gigabytes and relegating Telikom to an entity that is corporate insensitive to a revolving industry. 

Telikom have no one to blame because its shareholder, Kumul Consolidated Holdings, has conducted its redundancy exercise already by giving them the money and implementation is now dragging into the second year. 

Former Public Enterprise and State Investment Minister Ben Micah was responsible for this initiative to restructure the government’s business operations to boost efficiency and profitability.

Under Micah’s leadership, state owned enterprises such as Telikom PNG, have undergone profound structural changes.

New Minister William Duma brings the kind of corporate leadership that will accelerate the transformation and turn government business into success stories. But while all is going well at the political level, the same is not happening at the corporate level for Telikom. 

What was supposed to be a simple transition to compliment political wisdom is now a corporate entanglement, preventing the country from enjoying the benefits of cheap broadband services. 

Should PNG continue to suffer at the expense of the Telikom board and management’s ineffectiveness? 

This is why it is absolutely necessary for O’Neill to intervene and have all assets for wholesale business transferred to DataCo including PPC-1 before he proceeds with launching the NTN in Mr Hagen. 

Telikom must now focus on retail communication businesses and start doing some serious work on how to link from where DataCo fiber optic terminates into the homes or ends points of users. 

To date Telikom is silent on the use of US$230million to expand, revitalise and compete at the retail level. 

We need proper answers from the Telikom chairman and chief executive officer on this issue.

Samson Wena, 

Kerowagi, Chimbu