Photo credit: Loop PNG - Paulus Ain
According to the Independent Consumer and Competition Commission (ICCC), there are still concerns with internet price regulation in the nation.
Following consumer complaints over the costs of retail broadband internet services, the ICCC launched a preliminary investigation into the industry.
Consumers were concerned that PNG DataCo Ltd price reductions for wholesale internet broadband services in 2021 were not being passed down to them at the retail end, according to ICCC commissioner and chief executive officer Paulus Ain.
From December through March, the ICCC investigated consumer complaints to find out what was going on.
Internet Service Providers (ISPs), DataCo, Digicel PNG Ltd, Daltron PNG Ltd, Telikom PNG Ltd, and Datec were among the significant industry stakeholders interviewed.
“The ICCC raised consumer concerns, seeking information as to why advertised reductions in wholesale prices were not passed on, why consumers were not seeing corresponding price reductions at the retail level,” Ain said.
“The National Information and Communications Technology Authority (Nicta), the ICT regulator, was also consulted.” The ICCC found:
- Different cost structures for ISPs in PNG - mobile network operators and traditional ISPs in the town area have different cost structures that impact their retail price for internet services;
- Only if the ISP purchases the wholesale service from DataCo is the wholesale pricing a cost input into the retail service pricing.
- DataCo's National Transmission Network (NTN) is mainly unstable, with too many extended outages, thus ISPs can't rely on it entirely. Additional expenditures paid as the source through different sources - 03B satellites – to retain connectivity;
- Despite DataCo's claims of a 66% price decrease in their metro fibre service, pricing for this service remain quite costly when compared to equivalent services supplied by foreign service providers.
- DataCo has vertical integration concerns. DataCo not only owns and operates important wholesale infrastructure, but it also participates in the retail sector. This has caused alarm among the ISPs surveyed by the ICCC, and it may cause future competition problems for the ICCC.
- Mobile network providers' (Vodafone) potential entry and roll-out might boost market competitiveness. It's also good for DataCo since it gives the NTN another big customer. This might put pressure on DataCo, as the NTN's owner, to increase service offering in order to improve standards and coverage while also being more efficient.
“The ICCC understands that Nicta will be conducting an enquiry this year into the retail market for internet broadband services in PNG,” Ain said.
“This is due to create regulatory oversight in this segment of the market and enable ISPs to compete efficiently, in providing services to consumers.”
Reference:
The National (4 April 2022). “ICCC looks into internet prices”.
