FRIDAY, MAY 6, 2011

By JONATHAN FARAPO
THE recent acquisition of local ISP provider DataNets by the mercurial Digicel Group could be the feather in the hat for its local mobile operator as the company looks to upgrade its existing mobile services to third generation telephony, commonly referred to as 3G.
With the advent of mobile phone technology in the past 20 years and its introduction in the last 10 years to the wider urban and rural Papua New Guinea populace local consumers will no longer be content with just phone calls and text messages.
The introduction of the mobile internet service, social networks and free email accounts means business and pleasure will only be a tap away via your mobile phone.
But what’s the story behind this recent turn of events in PNG’s mobile phone industry and what will it mean for local consumers.
In its 2010 financial report Digicel Group announced that it had acquired DataNets PNG through a share buy-out, although the acquisition was down played according to some savvy net users it has paved the way for the establishment of 3G services for mobile phones in PNG.
One Digicel executive who wished to remain anonymous claims the acquisition could mean a comparative advantage for the mobile company.
This could hold true given PNG’s own telecommunications regulator NICTA has three license categories one which includes Digicel as an ICT Service Provider and DataNets as an ICT Network Provider.
Basically, that would mean Digicel holds a comparative advantage in the market place similarly to that of part nationally owned bemobile, however the downside is that Digicel will still pay Telikom for use of its internet gateway in PNG.
Almost like an answer to the avid mobile internet user’s prayers Digicel PNG’s recent broadband announcement will give consumers access to a form of mobile phone technology only available through overseas operators and even more importantly at an affordable price which appears to be easily accessible.
According to a statement by the mobile operator released this Friday (06/04/2011) the new mobile broadband service is PNG’s ultimate internet solution with high speed access, mobility, control and true value.
The local mobile king pin says 3G is the very latest in innovation and Digicel’s Broadband will greatly improve connectivity within PNG and is underpinned by Digicel’s commitment to best value, best network, best service and best innovation.
“No more cables or wires required, high speed 3G Broadband access will now be available through a range of convenient solutions to meet the needs of business people on the go or internet surfers seeking the coolest entertainment, social networking and latest news,” a statement from Digicel said.
Even Digicel’s top boss, chief executive offier John Mangos joined the hype by declaring that Digicel’s broad band will probably set the mobile house on fire.
“Digicel continues to lead the way in communications in PNG and our Digicel Broadband solution will provide customers with unrivalled convenience, high speed access and great value broadband internet connectivity. We believe that Digicel broadband will provide a major boost to business within PNG as well as significantly increasing internet penetration within the country. Recent research from CESifo* suggests that a 10 per cent increase in broadband penetration can help to raise annual per capita GDP growth by 0.9 to 1.5 percentage points. With Digicel Broadband, the possibilities are endless.”
DataNets now have a bigger role to play in the internet market that is not limited to acting and maintaining its function as an ICT network provider that will most definitely involve reaping the benefits of PNG’s fastest growing mobile network.
*CESifo Group, made up of the Center for Economic Studies (CES) and the Ifo Institute for Economic Research and the CESifo GmbH (Munich Society for the Promotion of Economic Research) is a research group unique in Europe in the area of economic research.