Telecommunications
Solomon Telekom licence extension uncertain
Solomon Islands Transport, Works and Communications minister Bernard Giro says it is unlikely Solomon Telekom would receive a favourable reply to its submission to extend its exclusive licence a further 10 years.
“The statement policy of the independence grouping is for the liberalising of monopoly policies within Solomon Islands sectors,” Giro said.
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“Solomon Telekom will not have a chance of getting this 25-year exclusive licence.”
Currently, Solomon Telekom holds a 15-year licence due to expire in June. As the sole domestic and international telecommunications provider for the Solomons, it is seeking a renewal, but for 25 years, on its control over the country’s provision of telecommunications services.
The company has opted not to comment. However Loyley Ngira, Solomon Telekom’s International Business manager says the company is yet to be officially informed (as of December 12) of government’s decision, which has taken some 18 months to assess. Solomon Telekom’s monopoly status has been criticised as not the best practice and that deregulation of the country’s telecommunications industry would mean more competitive charges compared to what they say are Telekom’s high rates.
A taskforce committee, appointed by Solomon Islands Prime Minister Sir Allan Kemakeza, was set up to examine the issues before it’s tabled in cabinet for a decision.
It’s noted that the coalition government’s majority party, the Association of Independent Members of Parliament, opposed Telekom’s move to extend its almost-expiring telecommunications licence.
Solomon Telekom is a joint venture between the Solomon Islands National Provident Fund, which owns majority shares at 51 percent, United Kingdom’s Cable & Wireless with 41.9 percent and the Investment Corporation of the Solomon Islands with a 7.1 percent ownership.
Other than public dissatisfaction, dissenting views also come from the established quarters of the Pacific Islands Chapter of the Internet Society (PICISOC). With its base in Niue, PICISOC (www.isoc.org), following much deliberation with IT-related people from the Pacific region, said in a circulated statement that Telekom’s 25-year pitch is “extreme and that period of exclusiveness should be reduced to a more reasonable term.”
It added: “While the Pacific Islands Chapter of the Internet Society understands the need to protect investments in fragile markets that exist in countries such as the Solomon Islands, this has to be weighed against the future needs of emerging national economies and the rate of change in a global world.
“Given the rate of change in (ICT), what telecommunications company can establish a concrete development plan for the next 25 years that requires a complete monopoly over telecommunications services?” questions the non-profit international body, whose objective is the global expansion of the Internet.
Giro said the likelihood of a more conservative licensing term was foreseeable.
