Fiji’s telecommunications giant, Amalgamated Telecom Holdings Ltd says it expects potential rivals in the mobile market to be aggressive in the way they operate when they enter the market by year end but said ATH was ready for it.
Four companies have been shortlisted to bid for two mobile licences and include Caribbean-based Digicel Pacific, Telecom Pacific Ltd (a joint venture between WR Carpenters South Pacific Ltd and Elandia (Intl), local internet service provider Unwired Fiji and Pacific Spectrum Holdings Ltd (whose directors include Siddarth Nandan and Karen Simpson of Nadi).
These companies have satisfied the interim Government’s specified requirements and will be allowed to take part in a private auction. The bid process is expected to be completed by month end.
With two licences to be given out and with Vodafone Fiji (a subsidiary of ATH) already having a licence, Fiji is likely to see three mobile phone operators in the market by year end. Under the Settlement Deed signed in January this year, the mobile market will open up in October.
One of the contenders, Digicel which has already set up its infrastructure around the country, is likely to be Vodafone Fiji’s main rival if it wins the bid. However, ATH’s acting chief executive Tomasi Vakatora pointed out that at December end (third quarter) Vodafone’s mobile subscribers had increased by 16 per cent and has exceeded half of Fiji’s population.
Speaking at a brokers’ briefing today at the South Pacific Stock Exchange, Vakatora agreed that Digicel has a different way of operating.
“They are very aggressive in places they have set up and I am sure they will apply the same type of competitive forces over here.”
Already Digicel has spread its footprints across the Pacific. It is headquartered in the Caribbean, is in Samoa and Papua New Guinea and has recently entered Tonga.
“If you can create a competitive market and grow the market at the same time, then everybody will be making steps forward, that is the whole concept behind pushing for deregulation,” he says.
He says Vodafone Fiji is placed very strongly at the moment with coverage throughout Fiji, has built up a very good customer base and has established its network of distribution.
Recently, Vodafone made a further capital expenditure of about $9 million to upgrade its network and which is expected to be completed by month end.
“But even with three, I suspect there will be two strong players, and one will probably be struggling to pick up the pieces from the other two. The market can only go so much.”
Fiji has a population of slightly over 800,000 people but Vakatora sees the 500,000 tourists coming to Fiji and who largely use roaming services as additional market to target.
In the end, he says what will drive demand is the technology and the kind of services that companies offer.
New innovations are coming up all the time and there will always be some new ways to use the phone as checking in at the airport, currently being used in the United Kingdom, he added.
Fijilive
Reader Comments
Posted Comments
Posted
By: Kaicolo Posted On:Feb 12 2008 17:04:27
Comment:
I think this is a very good start for further developments in Fiji. Hats off to the IG for allowing the deregulation and ATH for being a good sport. I think this deregulation thing should also be extended to other industries as soon as possible to help Fiji move forward.
Posted
By: DEEP Posted On:Feb 13 2008 05:28:46
Comment:
I 100% agree with Kaicolo's comments. Hats off to the IG. Vinaka
