Page 13 - IB February 2024
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Technology


             SKY-HIGH HOPES FROM STARLINK

                      BUT EXPERTS SAY IT'S NOT THE SOLE SOLUTION





        By Prerna Priyanka

         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.                             A Starlink dish placed on the beach in the Maldives. Photo: Starlink via X
         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.”   “If the level playing field is not in place, where any new
         Speaking to Islands Business, she said a fair regulatory   technology provider can come in and cherry-pick the most
        framework and licencing process is important to ensure a   lucrative markets, then the unconnected and the rural will
        level playing field for all internet service providers.  remain unconnected purely because of budget and spending
         “In other words, a certain amount of something (for   reasons, not so much from technology,” Fong said.
        instance, spectrum or internet data) should cost the same    He urged greater clarity and transparency in regulatory
        amount irrespective of the technology through which it passes   frameworks, especially regarding obligations imposed on new
        from a service provider to a wholesaler or consumer,” said Dr   technology providers.
        Watson.                                               He also mentioned the necessity for all operators to invest
         She said that while different companies may charge   in underserved areas or pay a levy if they cannot meet such
        consumers varying prices, regulators should enforce uniform   obligations.
        operating fees for all companies, regardless of the technology   He suggests that models like Vanuatu’s “pay to play”
        they employ.                                        approach might apply, where operators are allocated specific
         Dr Watson noted that competition from Starlink has the   projects to improve connectivity in underserved areas.
        potential to lower prices and enhance service quality, while   “With new licence issuances, there’s not much clarity
        reducing the effects of service disruptions during natural   around obligations,” Fong noted. “It would be good to know if
        disasters.                                          similar obligations exist for all players.”
         “The addition of a new technology in the mix of options can   He also raised the potential tax implications of Starlink’s
        have benefits when it comes to service outages,” she said.  entry, including issues related to duties, levies, and import
         “We know that climate change is increasing the severity   taxes.
        and frequency of severe weather and natural disasters like   Despite these concerns, Fong sees Starlink’s potential
        cyclones.                                           to provide reliable connectivity in underserved markets
         “In such cases, or when there are outages caused by other   where infrastructure reliability or availability is a significant
        issues such as cyberattacks or lack of fuel at a mobile tower,   concern.
        it can make a difference to people’s welfare if there are other   That extends to Papua New Guinea, where ATH has made
        ways to access mobile phone, landline or internet services for   significant investments in rolling out a 4G mobile broadband
        communication.”                                     network.
         Ivan Fong, CEO of Amalgamated Telecom Holdings (ATH)   “We use a lot of technologies in Papua New Guinea. We use
        Fiji, has welcomed the competition that Starlink will bring to   fibre optics, we use microwave, we use a lot of satellites, and
        established operators, but called for transparency.  the country is so big, and there’s so little development that
         He raised concerns about the affordability of Starlink   getting out and servicing your infrastructure is very difficult.
        services and the potential for rural areas to remain
        underserved.                                        Continued on page 22

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