Wholesale internet price now at K225/Mbps, down from K4,321/Mbps in 2014
News that matters in Papua New Guine
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Wholesale internet price now at K225/Mbps, down from K4,321/Mbps in 2014
PORT MORESBY: The wholesale price of internet to telecommunication companies has dropped from US$1,300 (K4,321.77) per megabytes per second (Mbps) per month in 2014 to about US$380 (K1,263.29) per Mbps about 18 months ago.
Currently, it is about US$98 (K325.80) per Mbps per month.
The whopping drop in wholesale internet charges was revealed by Kumul Telikom Holdings Ltd deputy chairman Reuben Kautu who said the retail price for internet access to consumers would drop significantly upon the completion and full commissioning of the Kumul Submarine Cable Network (KSCN) (this year).
The National reported the details of the KSCN that will spur affordable access to internet for Papua New Guineans and businesses:
Cable to help cut internet prices
By CLARISSA MOITANGIBLE retail internet price will be seen once the Kumul submarine cable network (KSCN) project is completed, according to Kumul Telikom Holdings Ltd deputy chairman Reuben Kautu.
He was responding to questions from the media on when the retail internet prices would be reduced following the reduction in wholesale internet price.
Kautu earlier said that in 2014, the price of wholesale internet was around USD1,300 (K4,321.77) per megabits per second (Mbps) per month which came down to about USD380 (K1,263.29) per Mbps per month about 18 months ago and is now around USD98 (K325.80) per Mbps per month.
“This in itself is the wholesale price,” he said.
“The pricing will continue to drop as parts of the national transmission network (NTN) is completed and the usage volumes continue to climb.
“We distribute that to the retailers like Digicel, Telikom and bmobile.
“They deliver them to the internet service providers (ISPs).”
Kautu also noted that there were some smaller ISPs who also needed to make their budget.
“This is where business is involved.
“We are not going to make Telikom and Digicel do this work alone, we must allow a lot of Papua New Guineans to participate in this.”
Kautu said in order for the retail internet prices to be reduced, there was a need to connect Manus, New Ireland, West New Britain, East New Britain, Autonomous Region of Bougainville, Gulf and Western.
“It’s like a cycle, all these places have to be connected to be able to work.
“In terms of economic scale, more volume driven, prices will go down.
“As soon as we connect all these provinces and light it up, we will see some traction on the pricing.
“But in terms of pricing going down, we need to be careful.
“We don’t want to kill our business Dataco.
“They need to provide the service and continue to sustain the service.
“There is a guideline around who buys from Dataco,” he said.
“At the moment, ISPs, Telikom and bmobile can buy from Dataco.
“The smaller ISPs then buy from Telikom and bmobile.
“Importantly, this milestone achievement is creating a lot of opportunities and a lot of impact on costs.
“Cost will be reduced so much that the small businesses will grow.
“Once everyone gets connected, the cost will go down and everyone else will be benefitting,” Kautu said.
He was responding to questions from the media on when the retail internet prices would be reduced following the reduction in wholesale internet price.
Kautu earlier said that in 2014, the price of wholesale internet was around USD1,300 (K4,321.77) per megabits per second (Mbps) per month which came down to about USD380 (K1,263.29) per Mbps per month about 18 months ago and is now around USD98 (K325.80) per Mbps per month.
“This in itself is the wholesale price,” he said.
“The pricing will continue to drop as parts of the national transmission network (NTN) is completed and the usage volumes continue to climb.
“We distribute that to the retailers like Digicel, Telikom and bmobile.
“They deliver them to the internet service providers (ISPs).”
Kautu also noted that there were some smaller ISPs who also needed to make their budget.
“This is where business is involved.
“We are not going to make Telikom and Digicel do this work alone, we must allow a lot of Papua New Guineans to participate in this.”
Kautu said in order for the retail internet prices to be reduced, there was a need to connect Manus, New Ireland, West New Britain, East New Britain, Autonomous Region of Bougainville, Gulf and Western.
“It’s like a cycle, all these places have to be connected to be able to work.
“In terms of economic scale, more volume driven, prices will go down.
“As soon as we connect all these provinces and light it up, we will see some traction on the pricing.
“But in terms of pricing going down, we need to be careful.
“We don’t want to kill our business Dataco.
“They need to provide the service and continue to sustain the service.
“There is a guideline around who buys from Dataco,” he said.
“At the moment, ISPs, Telikom and bmobile can buy from Dataco.
“The smaller ISPs then buy from Telikom and bmobile.
“Importantly, this milestone achievement is creating a lot of opportunities and a lot of impact on costs.
“Cost will be reduced so much that the small businesses will grow.
“Once everyone gets connected, the cost will go down and everyone else will be benefitting,” Kautu said.
Investors urged to seize prospect
BOTH domestic and foreign investors in Papua New Guinea (PNG) should seize and leverage on China’s multi-trillion-dollar Belt Road Initiative (BRI)’s business and trading networking, People’s Republic of China in PNG economic and commercial counsellor Liu Linlin urged.
He said the BRI, expected to cost more than US$1 trillion (K3.4 trillion) when completed, was launched by China on March 28, 2015 and had to date signed trade and business agreements with 65 countries, including PNG.
In five years, the BRI has:
He said the BRI, expected to cost more than US$1 trillion (K3.4 trillion) when completed, was launched by China on March 28, 2015 and had to date signed trade and business agreements with 65 countries, including PNG.
In five years, the BRI has:
- SIGNED cooperation agreements with 90 countries and international organisations;
- GENERATED US$70 billion (K237 billion) in trade between China and BRI countries;
- JOINTLY established 75 overseas economic and trade zones;
- CREATED more than 200,000 jobs;
- INKED 38 bilateral agreements and regional sea agreements, networking new shipping routes to connect 47 countries;
- IN the 1H 2018, caused Chinese companies to invest US$7.4 billion (K25 billion) into BRI countries sparking US$47.8 billion (K162 billion) in new engineering contract awards; and
- CREATED 356 new rail routes, 403 China-Europe direct flight routes to 43 countries and started postal services to 21 countries.
According to BRI’s official website, BRI’s aim is to promote transnational business and trade activities and connectivity via infrastructural development – road, rail, air and sea (ports) – to link China to the rest of Asia, South-east Asia, Europe, Russia, Scandinavian and Nordic countries and Africa.
Speaking in a media briefing on Thursday, Liu said PNG’s Kumul submarine cable network (KSCN) was one of the projects being funded and developed under BRI’s Government-to-Government (G to G) effort.
“When completed, it will propel PNG’s digital economy,” he said.
“The BRI signing between PNG and China in April last year facilitated the listing of KSCN under BRI. This is the beginning of PNG’s foray into a higher leave of global economics and trade,” he added.
Liu said BRI’s ongoing global development and networking for business and trade provided the potential for investors, both domestic and foreign, to leverage on the foundations laid by BRI.
“The evolving promotion of business and trade connectivity via continuous G to G cooperation and policies will benefit private initiatives,” he added.
“The Huawei-DataCo (KSCN project owner) is not the only China and BRI’s commitment to help promote trade and development. We have to date, provided the soft loan via the Chinese Exim Bank for the construction of roads in Mt Hagen.
“We are also involved in development and construction of West Lae Port’s industrial park and the construction of Enga Hospital,” he added. On the K2.03 billion PNG-China Integrated Agriculture Industrial Park Project (PNG-CIAIPP), Liu said there were still many issues pending that needed to be resolved by BRI’s G to G, especially on land issues.
The project in Western and Eastern Highlands are part of a massive US$4.46 billion (K15 billion) worth of impact projects to be funded by China.
The three projects are the US$4.1 billion (K13.8 billion) High Priority Economic Road Project, PNG-CIAIPP projects in Western and Eastern Highlands, and the US$32 million (K108 million) Goroka Town Water Supply Upgrade Project.
PNG and China signed the PNG-CIAIPP Memorandum-of-Agreement on Nov 20, 2017.
Speaking in a media briefing on Thursday, Liu said PNG’s Kumul submarine cable network (KSCN) was one of the projects being funded and developed under BRI’s Government-to-Government (G to G) effort.
“When completed, it will propel PNG’s digital economy,” he said.
“The BRI signing between PNG and China in April last year facilitated the listing of KSCN under BRI. This is the beginning of PNG’s foray into a higher leave of global economics and trade,” he added.
Liu said BRI’s ongoing global development and networking for business and trade provided the potential for investors, both domestic and foreign, to leverage on the foundations laid by BRI.
“The evolving promotion of business and trade connectivity via continuous G to G cooperation and policies will benefit private initiatives,” he added.
“The Huawei-DataCo (KSCN project owner) is not the only China and BRI’s commitment to help promote trade and development. We have to date, provided the soft loan via the Chinese Exim Bank for the construction of roads in Mt Hagen.
“We are also involved in development and construction of West Lae Port’s industrial park and the construction of Enga Hospital,” he added. On the K2.03 billion PNG-China Integrated Agriculture Industrial Park Project (PNG-CIAIPP), Liu said there were still many issues pending that needed to be resolved by BRI’s G to G, especially on land issues.
The project in Western and Eastern Highlands are part of a massive US$4.46 billion (K15 billion) worth of impact projects to be funded by China.
The three projects are the US$4.1 billion (K13.8 billion) High Priority Economic Road Project, PNG-CIAIPP projects in Western and Eastern Highlands, and the US$32 million (K108 million) Goroka Town Water Supply Upgrade Project.
PNG and China signed the PNG-CIAIPP Memorandum-of-Agreement on Nov 20, 2017.
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