Tag Archives: telecoms

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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Universal Access

On Wednesday of this week, Minister Edward Nipake Natapei and Australian High Commissioner John Pilbeam jointly announced the creation of a telecommunications Universal Access Fund. Designed to ensure that communications services reach all parts of Vanuatu, the fund was rolled out with an initial contribution from AusAID of 215 million vatu.

The idea is to allow market forces to work in the vast majority of the country, providing mobile telephone services on a for-profit basis. Digicel’s license terms state that it must make its service available to 85% of the population.

Mobile telephone service costs are tiny compared to traditional land lines. Infrastructure is minimal, and it’s not as susceptible to damage by the elements. Digicel is confident that it can profitably provide services over such a wide area. They’re so confident that they’ve ponied up a significant chunk of cash as a performance bond.

In time we’ll see TVL and smaller, ‘boutique’ operators entering these once marginal markets as well. But there will always be areas in Vanuatu that simply can’t be serviced profitably. This is where government enters the scene. They’ve designated a basket of money that will ensure that everyone from Aneityum to the Torres islands has access to mobile phone services.

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The Honeymoon's Begun

On Tuesday this week, Parliament agreed to put an end to the telecommunications monopoly in Vanuatu. This news has been greeted with widespread enthusiasm. People throughout Vanuatu believe that this means the days of over-priced, low-quality telephone and Internet services are finally over. But is this really the case?

The answer is mostly yes, with a few important qualifications. It’s almost certain that costs will decrease, service coverage will increase and quality will improve. It’s also quite likely that new kinds of services will be rolled out as well. But many of the environmental factors that constrained telecommunications in the past still remain.

With competition guaranteed. The major telecoms companies are in a beauty contest now. Customers in Vanuatu will shortly find themselves being wooed by players old and new, offering all kinds of exciting services, prices and promotions.

Let’s look into our crystal ball and try to see what things will be like over the next year or so.

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A Matter of Trust

“We are inclined to believe those whom we do not know, because they have never deceived us.” These words belong to Samuel Johnson, a wise man indeed. St. Augustine looked at things from the other side and famously observed, “Familiarity breeds contempt.”

We in Vanuatu have a distinct advantage over our neighbours in other countries. Our community is small enough that we can really get to know the movers and shakers in our society. It may take us time to become familiar with them, but if we have a mind to, we can learn the quirks and the capabilities of most of the people and organisations who can influence Vanuatu’s course and its future.

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