Regulation a priority for low internet rates

Regulation of the Information Communication Technology (ICT) sector should be prioritized to address the current expensive cost of Internet rates in PNG.

This is one of the recommendations highlighted in a new report launched by the National Research Institute titled, “Why are internet rates high in Papua New Guinea.”

Researched and compiled by Deloitte Touch Tohmatsu, the study highlights five factors contributing to the high cost of internet rates which are:

  • The ageing and expensive maintenance of internet infrastructure;
  • The high selling price of wholesale bandwidth;
  • High Government involvement and monopolistic features in the retail and competition;
  • Regulatory gaps and no clear regulatory authority to address the issue; and
  • PNG specific issues such as topography and skills.

Deloitte Manager, Todd McInnes, tells Loop PNG that it is difficult to pinpoint factors that need to be addressed immediately. However, as a matter of priority the regulatory factor has to be looked at.

“The Internet market is a system, and it requires a system wide response.”

“In terms of prioritizing at the end of the day regulations are the foundations for a well operating market, so I think addressing some regulatory gaps in the long term will lead to better long term outcomes across the sector,” said McInnes.

The report recommended both short and long term goals in addressing the issue.

Long term strategic objectives include the reduction of wholesale of process, regulatory, and retail market reform.

 

Author: 
Cedric Patjole