January 30th 2008 - - Digicel proposes interim solution

Wednesday, January 30, 2008 – Digicel, the fastest growing mobile operator in the Pacific, is ready to interconnect with Telikom and continues to work closely with them to achieve it. Digicel is concerned however that Telikom will not be ready to provide nationwide interconnection by the deadline of tomorrow, 31 January and has proposed clear and helpful solutions to Telikom to ensure that interconnection is achieved at the earliest possible date.

Interconnection is the joining of the networks of Telikom, B-Mobile and Digicel so customers on each network can make and receive fixed and mobile calls from each other. Having requested interconnection as early as April 2007, Digicel is glad that Telikom is now showing their commitment to the interconnect process and have stated that they are “aiming” for interconnect to the Digicel network by tomorrow, 31 January.

Digicel’s CEO Kevin O’Sullivan expresses his concern however on the progress of interconnection, commenting “Put simply, Telikom and Digicel have agreed to join their networks at four places around the country. Telikom however appears to be concentrating only on Port Moresby and is not ready in the other three places, namely Lae, Hagen and Kokopo”.

Kevin O’ Sullivan added that “Digicel wishes to ensure that all its customers are able to make and receive calls from Telikom and B-Mobile. All our customers are entitled to such an interconnection service and not merely some of them: each customer is important to Digicel and we do not differentiate between rural and city communities. We wish to ensure that each of our customers benefit from Digicel’s global reputation of providing unbeatable network and service quality measured in terms of high network availability and call completion, and minimal congestion and dropped calls”.

In order to get interconnection up as soon as possible Digicel is investigating a temporary solution while Telikom completes its outstanding works at Lae, Hagen and Kokopo. This would involve Digicel bringing all B-Mobile and Telikom traffic to Port Moresby from the rest of the country and vice-versa so that calls can be interconnected there by Telikom and B-Mobile.

In an effort to further assist Telikom, Digicel has once again offered Telikom interconnection equipment for the sites at Lae, Hagen and Kokopo. This equipment can be delivered to Telikom within 24 hours. Telikom has refused this offer in the past even though this would ensure nationwide interconnection.

Digicel and Telikom also continue to discuss access to Telikom’s international gateway. The international gateway is the equipment that connects Papua New Guinea to the outside world. In accordance with national legislation, Digicel’s mobile licence permits it to operate its own international gateway. This allows Digicel to offer its customers very competitive international rates, a simple rate structure and a world class quality of service. If Digicel is forced to stop using its own international gateway, this would result in Digicel customers having to accept Telikom’s congestion problems, quality of service and increased retail rates. Customers would also be prevented from internationally roaming or making or receiving international text messages.

Following discussions with the Honourable Minister of Communications and Information, Mr Patrick Tammur, Digicel is willing to offer Telikom access to its international gateway as a backup. This would lead to reduced congestion and increased revenues for Telikom. This is a real solution for the industry and all mobile customers, while also providing Papua New Guinea with a crucial alternative link to the rest of the world.

Since its launch in July 2007, Digicel has invested in excess of K450 million in Papua New Guinea including in its international gateway. The company is expected to invest a total of K1billion in the next three years.

ENDS