PNG’S TELIKOM MIFFED AT WORLD BANK SUBSIDY

PACIFIC ISLANDS REPORT

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

PNG’S TELIKOM MIFFED AT WORLD BANK SUBSIDY
Says competitor Digicel will profit unfairly

PORT MORESBY, Papua New Guinea (PNG Post-Courier, April 9, 2008) - State-owned telecommunications company Telikom PNG has voiced its anger against World Bank’s funding of Digicel’s operations in Papua New Guinea.

In a FM100 Talk Back show yesterday, Telikom’s article in one of the dailies was extracted and read on radio. It said the World Bank subsidizing Digicel’s operations through the International Finance Corporation (IFC) was wrong.

"IFC discloses in its website that it had contributed US$10.8 million to the US for the US$41.6 million Digicel Samoa project which will supply US$40 million towards the estimated US$160 million PNG project," Talkback host Roger Hau’ofa said as he read from an article published last week in the newspapers.

He said at the recent Pacific Telecommunications Association meeting in Hawai΄i in January, there were some “unhappy” telecommunication companies from developing nations that expressed their disgust over World Bank’s funding of foreign-owned telcos.

"Why, the complainants asked if the World Bank’s strategy is to support and empower developing nations including the provisions of modern communications for indigenous populations, why is it necessary to degrade and destroy indigenous telecommunication while enriching first world entrepreneurs," he added.

"Also affecting the PTA members is the question of transparency. Is it ethical for World Bank subsidies are not disclosed particularly since grand loyalty is such an important choice factoring competition from mobile customers, many of whom probably do not have much idea whether the profit which made from their phone calls end up?"

"Digicel’s profit… to its Irish-owner Denis O’Brien and his partners."

Meanwhile, Digicel yesterday said SMS (short message service) interconnection was still under testing and would be launched when ready.

"SMS interconnection between Digicel and Telikom is currently being tested and Telikom have now resolved the technical issues they were having with SMS interconnect. SMS is not ready to launch yet commercially, we will inform the public as soon as it is," it stated while responding to questions whether SMS interconnection was being halted again.

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