Tag Archives: digicel

The Numbers Game

[This week’s Communications column for the Vanuatu Independent.]

At a public meeting recently held in Port Vila, Digicel Pacific General Counsel David Dillon estimated that Digicel and TVL combined have about 100,000 active mobile subscriptions in Vanuatu. If that number is correct – and I believe it is – it means that the number of subscriptions has increased by a stunning 400% in less than a year.

100,000. Let’s think about that for a second.

In the big cities of the world, selling 80,000 new subscriptions is a modest achievement. But here in Vanuatu, simply finding that many is a herculean feat. Extrapolating from the 2001 census numbers, we can estimate that there are roughly 55,000 people living in Port Vila and Santo today. Pick any reasonable percentage of people actually using mobile phone services, and it quickly becomes evident that reaching the reported subscription level requires pretty significant penetration into places that had never had mobile services before.

Digicel, TVL and the government of Vanuatu have achieved a truly remarkable thing. This is nothing short of a communications revolution.

Nobody doubts that the effect of opening the telecoms market is a fundamental transformation in the way Vanuatu society interacts. But it’s difficult to characterise the exact nature and scope of the impact.

It would be nice to quote statistical chapter and verse, but we don’t have enough publicly available information to do so.

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Regulating Telecommunications

[This week’s Communications column for the Vanuatu Independent.]

Last Thursday, members of the IT industry, researchers and interested members of the public got together with Ministry of Infrastructure and Public Utilities to discuss proposed new laws governing Vanuatu’s burgeoning telecommunications sector.

At issue was a Bill to define the precise role of the Telecommunications Regulator. Designed to supplement the existing Telecommunications Act of 1989, it outlines in detail the extent of the Regulator’s mandate to influence the newly-liberalised telecoms market.

The draft Bill describes an environment wherein the Regulator has wide latitude to impose his will on telecoms operators if they misbehave. Among other things, he can enforce fair and equitable access to rare or unique infrastructure (known as bottleneck resources), he can intervene if telecoms operators are deemed to be offering preferential or prejudicial prices to others and if necessary he can enforce tariff or pricing regimes on carriers if they don’t play fair.

Viewed in the light of their exemplary track record, the draft Bill reflects well on both the Ministry and the Regulator. To date, their attitude has been to let market forces work with little if any intervention. They have nonetheless made sure that the regulatory stick they hold in reserve holds real clout. The proposed Bill gives this all the force of law. Rather than relying in the language of various negotiated agreements, they’ve outlined a set of rules that applies to anyone and everyone operating in the telecoms sector.

Others aren’t so sure that a big regulatory stick is such a good thing….

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A Tale of Two Telcos

[This week’s Communications column for the Vanuatu Independent.]

Last week I reported that, in spite of requests for information, neither TVL nor Digicel had responded in time for publication. I’m glad to say that in the days following, both of them contacted me. The way in which they did so was quite interesting to me, so this week I’ll share a few details, mixing them liberally with anecdote and observation of my own.

As with all such gossipy pieces, it’s possible the end result will tell you more about the author than the subjects.

Tanya Menzies, CEO of Digicel Vanuatu, was first to respond. She apologised that she hadn’t answered in the time I requested, but was quick to suggest we meet for coffee and a chat.

The ‘chat’, when it happened, lasted over two hours.
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Town and Country

[This week’s Communications column for the Vanuatu Independent.]

It’s axiomatic that in our so-called Information Society, improving communications is synonymous with improving people’s quality of life. Easier access to information is generally accepted as a good thing.

Far be it from me to gainsay the truisms that keep me in pocket money. But I do enjoy being wrong.

One of the most important lessons I’ve learned in my time here in Vanuatu is that trends and patterns are not so universal as they sometimes seem. Things that are self-evident elsewhere in the world should not be taken for granted here. Society, geography, economy and a few dozen other differentiating factors make Vanuatu unique in important ways.

Received wisdom, even from the leading lights of development theory, often does more damage than good if it’s not leavened with a solid grounding in local conditions. And that’s why I’ve been waiting with bated breath for an upcoming report by the Pacific Institute of Public Policy (PiPP) on the social effects of mobile telephony in Vanuatu.

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What Lies Ahead?

[This week’s Communications column for the Vanuatu Independent.]

Recently we’ve seen a bit of a lull in activity (or at least excitement) in the Vanuatu telecommunications sector. Customers are becoming a little blasé about choice in the mobile market. The mobile telephone incumbents have more or less established their positions, with TVL making real efforts to smoothe its complexion and Digicel allowing the first small warts to peep through its make-up.

The post-election transition of power slowed the policy process down some, and movements at the executive level meant that some of the local businesses needed a bit of a breather as well.

So let’s take this opportunity to do a little crystal ball gazing. What can businesses and Internet users generally expect in the coming months?

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N M P

[This week’s Communications column for the Vanuatu Independent.]

Not My Problem.

There is a time-honoured tradition here in Vanuatu, requiring that nobody get too fussed over anything. It requires as well that one think twice about the inevitable repercussions before taking ownership of anything. Whether it’s for an item or an idea, a report or a plan, taking responsibility is nearly always a liability.

There are good reasons for all this, to be sure. The only way for a group to survive in a small village – on an island, to boot – is to get along. Learning to keep one’s head down, even when silence comes at a price, ensures harmony. Being quick to forgive weakness and slow to confront ineptitude has become one of the hallmarks of Vanuatu society.

But this is the single biggest impediment facing IT service delivery in Vanuatu today.

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Our Greatest Wealth

[This week’s Communications column for the Vanuatu Independent.]

“Being rich is having money. Being wealthy is having time.”

Vanuatu is rich in time, if little else. Everywhere you look, you’ll see people loitering, chatting, sitting together, wiling away the hours.

Doug Patterson’s Kranke Kona cartoon contrasts the Vanuatu way with the outside world’s hurry-up approach to life brilliantly: Two amiable men, sitting under the coconut tree, see an expat scurrying by, briefcase in hand, mobile phone pressed to his ear. They ask him why he’s in such a rush. He replies that if he works without respite every day, some day he’ll be able to slow down and enjoy life.

I sympathise more with the two brothers under the tree than I do with the expat. But the real humour lies in the juxtaposition. As enamoured as we all are with having the time to do things well, time is, nonetheless, a finite resource. And while it’s easy to say that time is money, we need to ensure that we don’t focus too much on its price and not enough on its value.

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Then and Now

[This week’s Communications column for the Vanuatu Independent.]

In July 2004, the World Bank presented a report on the state of Vanuatu’s public utilities to the public.

This was a watershed moment. From that moment, the government of Vanuatu formally committed itself to a process that ultimately led to the break-up of the telecommunications monopoly and the creation of the Utilities Regulatory Authority.

The transformation since then has been nothing short of remarkable. Nobody seems to have anticipated just how widespread and immediate the effects of telecoms liberalisation would be. Some of the expectations outlined in the Infrastructure Regulatory Review appear now to be quite conservative, in some cases landing nearly outside the ballpark.

Perhaps most telling is the report’s contention that ‘low income, low population base, low urbanization and low literacy rate are characteristics which suggest that demand for telecommunications services in Vanuatu is likely to be constrained.’

Experience seems to indicate quite the opposite.
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Island Hopping

[This week’s Communications column for the Vanuatu Independent.]

Denis O’Brien, owner of the Digicel Group, graces the cover of the August 11th issue of Forbes Magazine. Their profile, titled ‘Babble Rouser’, begins with a tone of detached and vaguely supercilious astonishment at the risks that Digicel has incurred in the course of its lightning-quick expansion across the island nations of the world. It quickly sobers, though, when it reports that the Digicel Group earned $505 million in operating profit on $1.6 billion in revenue in the financial year ending March, 2008.

Forbes leaves it to O’Brien himself to explain his damn-the-torpedoes philosophy:

“Get big fast. [Damn] the cost. Be brave. Go over the cliff. [The competition] doesn’t have the balls.”

I suspect he used some word other than ‘damn’.

Most anyone would enjoy downing a beer with the honey-tongued chancer from Cork, but Denis O’Brien didn’t make the cover of Forbes merely because of a flamboyant devil-may-care attitude. He’s noteworthy because he saw an opportunity where others didn’t, and he got rich capitalising on it.

The idea is simple enough: If you give everyone – literally everyone – access to mobile services, you can make money everywhere. In O’Brien’s world, there is no such thing as low-hanging fruit. Every single market gets aggressively cultivated. The fruits of such labours are truly remarkable.

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Rebuilding the Nasara

[This week’s Communications column for the Vanuatu Independent.]

About a month ago, I gave a talk [Powerpoint File] to telecommunications network operators from all over the Pacific region. It dealt with the social aspects of Vanuatu’s communications revolution. Many of the themes I touched on will be familiar to readers of this column.

In a nutshell, I talked about Digicel’s approach to so-called marginal markets and how they relied on Network Effects to generate traffic where there had been none before. Once you have more than a certain percentage of the population using a particular means of communication, everyone else is compelled to join them, simply because everybody is using it.

Mobile telephone services significantly enhance one – and only one – important aspect of Vanuatu culture. They enable family members and friends to stay in touch with one another much more easily than they could before. This has the effect of strengthening some of the bonds that keep small groups together. As such, it should be viewed as a positive reinforcement of many of the things that we hold dear.

But in Vanuatu society, there’s more to communication than conversations between family members. We’ve so far succeeded in re-creating the kitchen conversation by electronic means. But we have no nakamal, no nasara. We have no meeting place we can truly call our own.

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