But experts say it’s not the sole solution
In the vast expanse of the Pacific, where connectivity challenges have persisted for decades, the arrival of Starlink, Elon Musk’s satellite internet venture, is creating high excitement and expectations, particularly in remote areas where terrestrial infrastructure is limited.
Papua New Guinea recently granted a business licence to Starlink. Late last year, Fiji gave the company a spectrum licence, with Deputy Prime Minister Manoa Kamikamica describing it as a “game changer”. Other countries have taken a more cautious approach, with Vanuatu authorities seizing unlicensed equipment and Samoa’s Office of the Regulator ordering the immediate stoppage of Starlink receiver and service use in January.
Dr Amanda Watson, a research fellow at the Australian National University, notes that in Fiji: “Regulators face a daunting task in managing rapidly evolving technologies.”
Speaking to Islands Business, she said a fair regulatory framework and licencing process is important to ensure a level playing field for all internet service providers. “In other words, a certain amount of something (for instance, spectrum or internet data) should cost the same amount irrespective of the technology through which it passes from a service provider to a wholesaler or consumer,” said Dr Watson.
She said that while different companies may charge consumers varying prices, regulators should enforce uniform operating fees for all companies, regardless of the technology they employ.
Dr Watson noted that competition from Starlink has the potential to lower prices and enhance service quality, while reducing the effects of service disruptions during natural disasters.
“The addition of a new technology in the mix of options can have benefits when it comes to service outages,” she said. “We know that climate change is increasing the severity and frequency of severe weather and natural disasters like cyclones.
“In such cases, or when there are outages caused by other issues such as cyberattacks or lack of fuel at a mobile tower, it can make a difference to people’s welfare if there are other ways to access mobile phone, landline or internet services for communication.”
Ivan Fong, CEO of Amalgamated Telecom Holdings (ATH) Fiji, has welcomed the competition that Starlink will bring to established operators, but called for transparency. He raised concerns about the affordability of Starlink services and the potential for rural areas to remain underserved.
“If the level playing field is not in place, where any new technology provider can come in and cherry-pick the most lucrative markets, then the unconnected and the rural will remain unconnected purely because of budget and spending reasons, not so much from technology,” Fong said.
He urged greater clarity and transparency in regulatory frameworks, especially regarding obligations imposed on new technology providers.
He also mentioned the necessity for all operators to invest in underserved areas or pay a levy if they cannot meet such obligations.
He suggests that models like Vanuatu’s “pay to play” approach might apply, where operators are allocated specific projects to improve connectivity in underserved areas.
“With new licence issuances, there’s not much clarity around obligations,” Fong noted. “It would be good to know if similar obligations exist for all players.”
He also raised the potential tax implications of Starlink’s entry, including issues related to duties, levies, and import taxes.
Despite these concerns, Fong sees Starlink’s potential to provide reliable connectivity in underserved markets where infrastructure reliability or availability is a significant concern.
That extends to Papua New Guinea, where ATH has made significant investments in rolling out a 4G mobile broadband network.
“We use a lot of technologies in Papua New Guinea. We use fibre optics, we use microwave, we use a lot of satellites, and the country is so big, and there’s so little development that getting out and servicing your infrastructure is very difficult. So, in markets like that, we tend to use a lot of options for redundancy and availability,” he noted.
Samania Ned, from Papua New Guinea’s University of Technology, notes similar challenges and opportunities with Starlink’s entry into that market.
“Starlink Satcom will definitely enable remote areas of Papua New Guinea to have broadband quality access,” Ned affirms.
However, she says there will be challenges in affordability and deployment logistics, posing a significant barrier to widespread adoption.
“Remote communities and ordinary Papua New Guineans will struggle to afford this technology,” she said.
“The hardware itself is only sold in USD and there is a monthly subscription. With this type of business model, Papua New Guineans in remote and rural areas would need access to financial services that would enable them to afford and maintain this service.”
She does see an opportunity for economic development, particularly in agricultural industries, through improved access to markets.
Ned emphasises the importance of a clear line of sight, reliable power sources, and protective housing for equipment for effective Starlink services in PNG. Regulatory frameworks are also crucial, with Ned advocating for policies to ensure equitable access, and safeguard critical industries and environmental considerations.
“A policy framework should regulate business, as well as the use of radio frequencies,” Ned states.
Radek Tkaczyk, technical director of NETVAULT, a company at the forefront of implementing Starlink’s services in Fiji, has installed setups for the Tappoo Group and Nanuku Resort on Viti Levu.
Starlink has not set up an office in Fiji yet, but Tkaczyk has told local media that they import the Starlink dishes from Australia or New Zealand, carry out installation and provide “seamless failover technologies, management, monitoring, technical support and all those add-ons.”
He said residential connections will not be available in Fiji for six to twelve months, and NETVAULT is providing business and commercial services.
While NETVAULT has got in early, how distribution in Pacific Island nations will be scaled and localised is unclear. In PNG, Ned says, “Like all other major tech companies like Microsoft, Apple, Google, Amazon, etc, there will always be authorised resellers. And in Papua New Guinea, I would like to see many of our local established ISP providers be given the opportunity to be authorised resellers.”
ATH’s Fong also mentions the importance of local established ISP providers being given the opportunity to be authorised resellers.
“It’s a way to ensure that local businesses can participate in the distribution and service provision of these technologies, which can ultimately benefit the community and the economy.”
While challenges remain, such as the activation of ground stations in Fiji and ensuring regulatory compliance, Starlink’s entry into the Pacific market signals a new era for the sector.
“I think Starlink, along with other emerging technologies like Lnyk and AST SpaceMobile, present promising opportunities for connectivity in the Pacific,” said Fong.
“It’s important to remember that it’s part of a mix; it’s not the sole solution. We need to continue improving and deepening services to truly transform connectivity in the
Pacific.”
Additional reporting by Samantha Magick
