Telstra takeover of Digicel ‘could reduce rates and bundles’

THE proposed acquisition of Digicel Pacific by Telstra will not reduce the number of telecommunication companies operating in PNG, an organisation says.
The Highlands Farmers and Settlers Association told Independent Consumer and Competition Commissions (ICCC) during a public consultation, that Telstra would replace Digicel and continue offering mobile phone and internet services.
It said the acquisition would not reduce competition but could reduce its rates and bundles. It also suggested that the National Information and Communication Technology Authority (Nicta) allow more licenced companies to enter the market. It said there was likely to be different products and services offered by Telstra. “Although entry for a new company to establish itself in PNG is high cost, it is said that barriers to expansion for existing companies in PNG are comparatively low and also the entry barrier is low and new licenses can be issued.”