VANUATU GOVERNMENT SELLS INTEREST IN TELECOM

PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i

VANUATU GOVERNMENT SELLS INTEREST IN TELECOM
Move criticized by parliamentary opposition

PORT VILA, Vanuatu (Vanuatu Daily Post, April 3, 2008) – The government had to [sell] 1 billion vatu [US$10.8 million] in TVL shares so that 80 percent of the Vanuatu population in the rural areas have access to a phone with the introduction of competition in the telecom industry.

[PIR editor’s note: Telecom Vanuatu Ltd. (TVL) is a privately-owned telecommunications company that operates in areas of the islands of Efate, Malekula, Santo, Ambae, and Maewo ]

Government spokesman Patrick Crowby was commenting on an Opposition [viewpoint] that the decision to give away Vt1 billion shares in TVL was bad business.

The Opposition questioned the sort of agreement was negotiated with TVL for the acquisition of the government interest. They also said the divesting of state assets in highly profitable entities for nothing or negligible benefit is bad business.

This may be attributed to questionable or dubious motives and raises questions as to the capabilities of the current administration, the Opposition said.

But Mr Crowby said Vanuatu had to make the sacrifice of giving away the people’s shares in Telecom to pave way for competition in the telecom industry to fulfill the government of the day’s vision for all the rural areas to have access to phones.

He praised TVL for their efforts in installing phones in the islands although the government has received regular complaints from people in the islands that some TVL phones had to take a while before they are repaired.

"With the introduction of competition, telecom companies like Digicel for example, can compliment TVL in connecting the rural communities to Port Vila and the rest of the world," Mr Crowby said.

The price the people of Vanuatu had to pay so that their government can break the Telecom monopoly is Vt1 billion but in the long run the government envisages a boost in the rural economies soon as all the farmers have access to phones.

"They can access information on market prices and can deal directly with buyers about the quantity and value of the commodity requested. This will revolutionise the communication system in Vanuatu so that instead of a farmer travelling many kilometres to make a phone call they can save that time to till their farms," Mr Crowby said.

The government spokesman said the economic benefits in the rural areas in the future will outweigh the Vt1 billion shares in TVL the government has decided to [sell] in order to bring in more telecommunication companies.

On the issue raised by the Opposition about that the Prime Minister Ham Lini led government has not done enough to promote French language and alleged that his government favours English speaking public servants, Mr Crowby said that is an insult to the government.

"When the Prime Minister (Lini) was in Paris he asked the French government two things. First that the French language must be taught in all English speaking schools, and second that a French bank (Bred Bank) is established in Vanuatu," Mr Crowby said.

He said the current administration values both English and French and its actions will be unconstitutional if it does otherwise but Prime Minister Lini saw a need for direct help from Paris to raise the standard of the French language in schools so he requested France for that assistance.

Go back to Pacific Islands Report: Graphics or Text Only.