Photo credit: Telikom PNG - Telikom PNG Acting CEO, Mr. Amos Tepi (left) and Acting Head of Commercial, Mr. Silas Matoli (right)
Telikom PNG Ltd interim chief executive officer Amos Tepi said the Telikom-bmobile merger should be finalized by the end of the month.
Tepi stated that the merger was roughly 85% complete.
“We are just looking at the regulatory and legal aspects and once that is over, we are going over the line so we should meet the deadline,” he said.
“It’s all progressing and about 85 per cent completed.”
Communications and Information Technology minister Timothy Masiu previously stated the merging of bmobile and Telikom PNG into a single retail operator was critical as it would improve access in the country.
“Legally speaking, merging bmobile and Telikom is a challenge because of the cross-collateralisation arrangements in place on assets,” Masiu said.
“Technically speaking, the integration of two SOE (state-owned enterprise) mobile networks also has cost implications.”
Masiu stated that, in light of the K1.6 billion loan obtained from China's Exim Bank to expand network coverage, as well as recent asset audits, the government was now prepared to consider investing in the merger – before considering any other options for the telecommunication state-owned enterprise's future.
“After considering a wide range of reform options, merging is the best decision for the business and this will pave a way forward to a liberalised market.”
The government spent five years ago in a nationwide broadband initiative that gave Telikom a converged 4G communications network.
Following that, bmobile's RediSIM subscribers were able to experience 4GLTE network capabilities thanks to a phased upgrade that was completed this year.
Kumul Telikom Holdings Limited (KTHL) made significant efforts to achieve the merger and consolidation of the mobile company as part of the Government's communications reform instructions to create a single mobile network.
It is the final key component in KTHL's attempts to deliver competent, cost-effective, and competitive mobile communications.
The Government's October 2019 state-owned enterprise reforms covered a number of critical business components, including improved governance and accountability.
It also necessitated a stronger focus on achieving fundamental SOE goals, such as providing accessible, cheap, and dependable services while generating a reasonable return on investment.
The KTHL mobile network integration was the company's first significant infrastructure expenditure in the previous three years.
As part of the reform, the National Executive Council authorized the merger, and work began in 2018.
Reference: Luma, Dale. The National (15 September 2021). “‘Telco merger 85pc complete’”
