Well-Connected

"Alucobond was chosen for its durability and resistance to ultraviolet light. It is also low on maintenance, and will hold its look over time," Samoa Tel CEO Mike Johnstone says. The inside is also state of the art, the first "intelligent building" in Samoa, wired up to utilize the latest technology in building design and use. Special features include a bunker type construction in the switch area for maximum security especially during natural disasters, tele housing and audio and video conferencing facilities for the business community, a new 30,000-line switch, which is double the existing capacity, access for the physically disabled, special safety features against fire and other calamities, and its own power supply.

The building is three stories high, and easily dominates the semi-urban surroundings. Next to it stands the satellite dish that connects Samoa to Intelsat. Together, the two proclaim in no uncertain terms that this is Samoa's telecommunications hub.

It is also the new home and nerve center, for Samoa Tel, Samoa's state-owned telecommunications provider. Samoa Tel was created two years ago when Samoa's old Post and Telecommunications Department was turned into a corporation, and given the mandate and the wherewithal to fast track Samoa's telecommunications and postal services to the 21st Century.

In pursuit of its vision "to be a world standard communications company, delivering shareholder value through the provision of high quality products and services to its shareholders," the company embarked on a major infrastructure investment program that includes the laying of a fiber optic ring around the two main islands, the extension of telephone coverage to 85 percent of the country, restructuring of the postal services, and construction of new headquarters and a new telephone exchange.

The new Samoa Tel headquarters. Photo: Afamasaga Toleafoa

Weeks before the opening on Dec. 20, telephone services to the remote west of Savaii Island were opened. This followed the earlier expansion of telephone services to the south side of the island of Upolu. "The opening of these services brings telephone services to 85 percent of the country," Johnstone explains. "And we intend to increase this to 90 percent by the end of this financial year."

But expanding the reach and quality of telephone services is only the first phase of Samoa Tel's development plans, according to Johnstone. The next stage will be data, with emphasis on broadband for business and for institutions such as schools.

According to Johnstone, Samoa is one of the few island countries in the Pacific that offers dedicated private lines at present. But the growth of this kind of service, and of other more advanced data processes, will depend on the economy.

Ensuring that Samoa is fully networked, locally and internationally, is a crucial part of Samoa's development. Existing businesses need adequate communications to compete and to market themselves. Samoa also needs to be in a position to take advantage of opportunities for investment in new industries, as Asian countries have shown.

It is with that in mind, says Johnstone, that Samoa Tel was recently restructured to be more of a business itself, "to change the way we do business, to operate Samoa Tel as if there was a strong competitor."

President of the Chamber of Commerce Sala Epa Tuioti says it is too early yet to see the full benefit of Samoa Tel's infratructural development of recent months. "The most pressing need for most businesses right now is to obtain reliable and reasonably priced telephone and Internet connections. Samoa Tel picked up a system that was a long way short from meeting the needs of business, and there is some way to go yet to achieve this. The new developments should help bridge the gap."

"There is also the question of cost," Tuioti says. The Chamber believes that the cost for international connections especially is too high and should come down. Government sees privatization of state owned enterprises and competition as the means to obtain the best results. So it remains to be seen what will happen with the Samoa Tel state owned monopoly. Tuioti adds that Samoa was a small market, and may not sustain too many competitors in such a capital-intensive field. "Nevertheless, government needs to appear to be even handed with its privatization program."

Samoa Tel, according to Johnstone is already at the forefront of communications in the Pacific. The company is relatively large by Pacific Island standards with revenues in excess of T$50 million (US$ 30 million) annually, and a staff of 230.

Last year, Samoa Tel was criticized for having too many expatriate managers. But that is changing, with two of the five manager positions localized. The other three are being advertised locally and overseas.

CEO Johnstone himself joined Samoa Tel late in 2004 having worked previously for Telecom NZ, AT&T and Telstra among others. "Samoa Tel is a unique model for a country of this size. It is already an important player in the region. It is also unique because like the company's new T$17 million head office, it is fully owned and paid for by the people of Samoa."