Capacity Building and ICT Policy, regulatory and legislative frameworks in the Pacific

Regulatory and Policy Developments in Papua New Guinea

Nadi, Fiji Islands

26-27 November 2009 Charles S. Punaha Director General, PANGTEL
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Key policy decisions

1996: corporatisation of PTC

2002: continued monopoly changed regulation:

Establishment of PANGTEL Telikom PNG Limited Post PNG Limited

Telikom PNG regulatory contract:

2005: Mobile competition

regulatory responsibility split ICCC and PANGTEL

five year monopoly period with investment and service quality KPIs price regulation of certain wholesale and retail services

June 2007: infrastructure investment focus

Early introduction of mobile competition with 2 new licences

February 2008: staged introduction of open competition

Netco monopoly/Servco reseller competition

March 2009: National ICT Policy November 2009 NICTA Act 2009

National ICT Policy 2008 Phase 1 status quo pending detailed analysis and report

Development of phase 2 reforms

Detailed public consultation in 2008 Numerous one-on-one, group consultations and workshops February 2009: consultation draft Experts Report

analysed international best practice assessed PNG market and local issues formulated and made >50 policy recommendations

March 2009: National ICT Policy Phase 2 Reforms Final Report approved as
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Structure of the NICTA Act 2009

Wholesale Access Regime

Extend existing regime to interconnections services as well as other declared services: Process for declaring additional services:
declaration criteria: competition objective and balancing efficiency objective (investment incentives) NICTA makes recommendation to Minister prescribed pricing principles NICTA can determine dispute on terms & conditions

Phase 2 regulatory regime

Institutional arrangements
NICTA as the new ICT industry specific regulator With all ex-ante functions & powers PANGTEL to be disbanded ICCC to continue competition role

Negotiate/arbitrate model on terms of access

OPEN COMPETITION
Retail regulation
Remove for regulation focussed only on Telikom PNG Legislative mechanism for regulating retail price and service if required on market power and detriment analysis

Comprehensive Timely: subject only to new regulatory structures and transitional arrangements

Domestic
Not sector specific Underpinned by licensing regime

International
Liberalisation of gateway Provides competitive options Encourages commercial response by Telikom

Unified licensing regime

Substantially revised licensing regime Move away from technologically specific, vertical licensing Technologically neutral horizontal licensing structure Facilitates new entry and expansion creates commercial opportunities and consumer benefit

Universal Access and Service regime

Create a new UAS for unserved and underserved Retains mandatory roll-out Establish a UAS Fund administered in an accountable & transparent way 5 UAS levy (not before 1 Jan 2011) at rate to be determined

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