Page 37 - IB May 2024

Telecom Feature Telecom Feature

announcement. importation of Starlink kits by individuals as the government
Quoted in Market Index online, Macquarie Bank analysts considers the company’s application to operate there.
identified Telstra’s Papua New Guinea business as posing In Fiji, the move to introduce Starlink was welcomed by
continued political and operational risks to the company. the Fiji Competition and Consumer Commission, which said it
However, Telstra Corporate Affairs Communications would boost competition and help bridge the digital divide.
Principal, Philippa Perry told the PNG’s Post Courier that “Competition in the market is always welcome as it
there will be no repercussions in the Pacific. motivates businesses to enhance their offerings, ultimately
“There are no impacts to Digicel PNG or Digicel Pacific more leading to greater advantages for consumers. We anticipate
broadly following Tuesday 21 May announcement,” she told more competitive pricing and enhanced service quality,
the newspaper. making high-quality internet services more affordable and
Telstra, through Digicel, operates in PNG, Fiji, Nauru, accessible to a wider range of consumers,” said CEO Joel
Samoa, Tonga, and Vanuatu. Abraham.
It recently announced the commissioning of an International Meanwhile in Tonga, where internet services remain
Multiprotocol Label Switching (MPLS) Network-Network- poor since the Hunga-Tonga Hunga-Ha’apai eruption, the
Interface (NNI) enabling direct network connectivity between government continues to consider Starlink’s application for a
Telecom Fiji and Telstra’s network. license to operate. As with many parts of the Pacific where no
The NNI with Telstra is directly linked to Telecom Fiji’s formal licence has been issued, individual users are currently
second Point of Presence (POP) in Sydney, enabling local connecting to the service through roaming plans.
organisations in Fiji and the region to establish links with their Licenses to operate have already been granted in Papua
overseas branches through the Telecom-Telstra NNI link. New Guinea and Cook Islands.
“Our customers will experience heightened data Pacific Islands telcos are increasingly looking at the
security, remarkably improved delivery speeds, and a introduction of ulitilisation rates to address concerns over
telecommunications encounter that’s truly second to none,” fairness and equity in the face of new entrants such as
said Mesake Tuinabua, Chief Technical Officer at Telecom Fiji. Starlink into their markets.
Telstra International also plans to develop a regional hub in
Guam, by developing a new point-of-presence (PoP) in Piti at The digital divide
the carrier-neutral GNC iX data center, which is owned and Speaking in Sydney earlier this year, Samoa’s Prime Minister,
operated by TeleGuam Holdings, LLC, doing business as GTA. Fiame Naomi Mata’afa spoke of the potential that fast,
Guam is located at the crossroads of several major affordable international connectivity opens for small island
submarine cable routes—including the Asia-America Gateway states.
(AAG) cable system, the Australia-Japan cable (AJC), which is But she said small domestic markets and the small number
fully owned and operated by Telstra, the Taiwan-Philippines- of ICT suppliers posed challenges: “Often people do not know
US (TPU) cable, and direct network connectivity to nine how to take advantage of the technologies. There is often
additional cable systems—connecting Asia, Australia, and the a lack of awareness of the advantages of connecting, a lack
United States. of relevant local content online in the local language and
The new Telstra PoP will be a key connection point for a much higher cost of connection than in most countries.
the new Echo cable and central Pacific Connect cable being Many small island states rely on satellite connections, and a
constructed by Telstra. small domestic market does not offer industry enough return
on investment - nothing like the large urban areas. Industry
Starlink therefore needs to be incentivised; regulatory frameworks
This month, the SpaceX satcoms service, Starlink, finally need to be harmonised.”
went live across Fiji, after months of anticipation. She noted the importance of regional cooperation, citing
Starlink was granted a licence to provide Internet services the immediate benefits of landing new cables has in the
in Fiji in mid-November 2023. region. And she said that Samoa was “struggling” to develop a
Meeting SpaceX boss Elon Musk in Bali in May, Fiji’s whole-of-government framework to manage the economic and
President, Ratu Wiliame Katonivere highlighted Starlink as a social transformation inherent as ICT advancements converge
proven solution for providing services during natural disasters, with advances in other technological fields.
in particular after the 2021 underwater volcano disaster in Fiame pointed to concern over the impact of ICT and AI on
Tonga. the labour force, in exacerbating inequality and in posing new
In response, Musk said Starlink views the Internet as a risks to public safety and national security.
necessity for financial services and e-commerce, citing the She said public engagement is critical to ensure equity,
loss of Internet connectivity that costs billions of dollars transparency, and accountability, and that: “This will
for six East African countries, following the cutting of an necessitate agreeing on the nature of national regulatory
undersea cable in May. oversight bodies and determining whether they should be
Musk plans to visit Samoa for the Commonwealth Heads of public, private or of a mixed composition.”
Government Meeting (CHOGM) in October. Samoa’s Office of
the Telecommunications Regulator has temporarily banned

Islands Business, May 2024 37