Telecom
Confusion in Fiji
Private Sector Providers Complain That Government Still Dominates Access To The Internet.
Fiji’s express on-ramp to the Internet has run into a roadblock. Despite government action granting Internet Service Provider status to eight private companies, the government’s telephone monopoly, Telecom Fiji Ltd. isn’t recognizing the private sector providers in the apparent hope of extending its control of access to the World Wide Web.
“We’re told Telecom is spinning off Internet Services Fiji (ISF) as its new subsidiary ISP, whatever that means,” says Chris Caine, who runs Integrated Multimedia Communications, a potential ISP should its license be activated. After meeting with them (TFL) they reiterated that they do not recognize any of the license issued by government to date.
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“They believe in a single monopolistic license. If any ISP were to operate it would be Vodafone, as an umbrella company. And the only thing to sort out is the connect rates, trying to get a flat rate instead of per minute rate,” adds Caine.
Director of the Telecommunications Regulatory Unit Josua Turaganivalu says part of the problem is the existing pricing structure. The high cost makes it difficult for ISPs to offer price competitive packages. Telecom Fiji has been copping a lot of flak over this, but the company is working on providing amicable solutions. The telecommunications entity that manages national telecom operations has embarked on rebalancing its existing cost structure. The tariff adjustments will involve lowering long-distance charges and call charges and raising its line rental fees.
As part of its revamping process, Telecom Fiji plans to create a subsidiary to handle its ISP operations. The idea is to keep Telecom’s traditional functions separate in light of the ISP licenses that were issued.
There has been constant talk about deregulating ISPs and encouraging new providers, as multiple ISPs could only mean competitive rates and faster service.
Meanwhile, reasons for the high pricing lie in the historical nature of the telecommunications sector.
FINTEL’s (Fiji International Telecommunications) pricing on access is high as well, up to 25 percent. Its bandwidth cost could also be a contributing factor to the slow progress. Caine notes that charges range from $85,000 to $110,000 for limited bandwidth. Compare this to the United States, says Caine, where the rate for comparable bandwidth is US$2000 per month.
While pricing is one point, perception is another; that TFL supposedly holds monopoly rights over ISP provision. However, it is understood that ISP is already a deregulated area. Fiji’s ISP history began in 1995 when the Pacific Islands Forum Secretariat had mooted the idea to introduce Internet access for Pacific island countries beginning with Fiji. A six-month test ensued with Telecom Fiji and FINTEL resulting in the provision of Internet access in Fiji the following year. The understanding is that there was no mention of the issuing of an exclusive license to Telecom Fiji.
A session of the 24th PTC (Pacific Telecommunications Conference), which will be held in Hawaii this month, will discuss how regulators and providers can operate more amicably. The PITA (Pacific Islands Telecommunications Association) and East-West Center workshop is entitled, “Service Provider meets Regulator: Let’s be Friends”
