Telecom market power review results out soon

September 08, 2009 07:06:41 AM

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Fiji’s telecommunications industry will soon know if it is overshadowed by a dominant market player and whether it would still need the active intervention of the Commerce Commission, Fiji’s monopoly watchdog. 

The Commission had been met with delays in the finalisation of a draft determination regarding the control of substantial market power in the industry, which it began reviewing in June. 

Commission chairman, economist Mahendra Reddy has told FijiLive that the commission has completed the draft determination and results are expected to be made public soon.

“The draft determination is now out with the telecom operators.  They are looking at it but I am going to get a statement out on this next week,” Reddy said.

In June, the Commission announced it was undertaking what it termed a “Review of the Control of Substantial Market Power for Interconnection Services in the Fiji Islands” and a draft determination was to have been produced at the end of the month.

However, FijiLive understands there have been delays in the adoption of a final determination, which was scheduled for the end of July, following disagreements between some operators. 

Fiji’s telecommunication market is currently undergoing major reforms following the signing in January 2008 of a Deed of Settlement between the Fiji government and incumbent operators, for the premature ending of their exclusive licenses in return for free 14-year open licenses. This then set an agenda for a gradual opening of different markets, with the mobile network operator market being the first to open in October last year.

The event coincided with the launch in Fiji of Irish-owned Digicel, which won a competitive tender for its license with a bid worth US$10.25 million.

This ended the exclusive hold by Vodafone Fiji of Fiji’s mobile telephone market.

In mid-July, the second major reform was instituted in the official liberalisation of international telecommunication access, effectively ending the exclusive contract in that market held by the Fiji International Telecommunications Ltd (FINTEL). 

The Commerce Commission is expected to begin a separate review of FINTEL’s operations after it completes the current review.