The Coconut Wireless

fiji,telecommunications,deregulation,cable,infrastructure,upgrade,competition,internet gateway,fiber optic cable,southern cross

Word from an online source about upgrades to the Southern Cross Cable infrastructure.  Expanded capacity to deal with the growth in traffic expected from upcoming move to full deregulation and increased competition.  Unless and until FINTEL is forced to give up its exclusive control of Fiji’s international telecom gateway, we will not have real competition in the internet market. 

Fiji’s ICT sector is expected to benefit greatly from the upgrading in capacity of Southern Cross Cable Network (SCCN)… SCCN will have ten times its original capacity once the upgrade is complete. George Samisoni, manager for commercial and business development and Fijian telco FINTEL, said that the upgrade would result in more capacity available for FINTEL to purchase in order to cater for continuing demand. He added that the capacity upgrade will also allow FINTEL to more readily face competition when Fiji’s telecoms market is fully deregulated in June 2009

Note: Due to a software issue, posts were less frequent the last few weeks.  This has been resolved.  Please expect posts to return to their normal rate.

This week, news comes from American Samoa where legislators have approved funding for a nundersea fiber optic cable to carry internet traffic between American Samoa and Hawaii.

From a Radio New Zealand story:

The government’s investment in the Pac Rim East Cable, which will connect American Samoa to Hawaii using a cable now servicing New Zealand, is nine million US dollars.

Looking back at my last two posts, what is happening in American Samoa might be the only way to introduce real competition for internet service in Fiji. 

The silence on how deregulation will proceed for broadband internet service in Fiji is not a good sign.  The ‘functional separation’ that is required to pry the internet backbone out of FINTEL’s control should be at the core of any discussion on introducin competition. 

Real progress may only come with laying a new fiber optic cable to compete as an international gateway with FINTEL and the Southern Cross Cable.

Ultimately, freeing Fiji from the shackles of slow internet speeds and poor service may only come with additional investments of the sort made this week by American Samoa. 

So there is no confusion: Fiji already has infrastructure in place to handle all of its telecommunications needs.  It’s the exclusive arrangement that FINTEL holds as ‘international gateway’ that is the real hindrance.

Moving forward, the new Telecommunications Authority of Fiji will have this is their first real test as a regulator. 

What are the benefits of deregulation and increased competition?  From a New York Times article, here is what it has meant for Europe:

Half of the European Union countries could match the United States in broadband use by 2010, Ms. Reding said, if regulators take a tough stance to pry markets open. European Union broadband rates vary from 35.6 percent in Denmark to 7.6 percent in Bulgaria. The United States level was 22.1 percent as of July 2007, according to the Organization for Economic Cooperation and Development.

Ms. Reding emphasized her determination to encourage greater competition in the market and to give regulators the power to force “functional separation” — obliging the owners of telecommunications networks to free the networks from their operating divisions.

In seven member states, more than 60 percent of the broadband market is in the hands of incumbents, she said.

Ms. Reding adds, “The dynamic market force is new entrants”. 

Improving rates of broadband usage indicate many things, but as the article shows, it is increasingly a mark of how well-suited a country is as an investment destination.  Definitely something for policy makers to take note of in Fiji.  Higher levels of broadband internet usage are signs of an educated population with a sophisticated understanding of technology–very important to drawing overseas investment capital in today’s global economy.

The second article is also from the New York Times and deals with the setbacks cities in the US have faced in trying to set up free and/or subsidized municpal wifi networks.  The failure to get these networks up is an indicator of how it is important to have a clear business plan mapped out before deploying such networks.  Yet again, it is a call for business leaders and policy makers to sit down and really think about what deregulation and broadening access to technology means for Fiji.  It is also important to note that these efforts precluded use of WiMAX technology–something that gives Fiji a considerable advantage.

Currently, FINTEL is acting very much in the manner of the European monopolies.  Widening access to the internet, especially how it has been described on this blog means that policymakers will to pull themselves together and challenge the way things are being done.

What these articles have in common is growing acceptance of the idea that high levels of internet usage are good for a society.  Improved education levels, quality of life gains, increased suitability as an investment destination, and improved emergency communications are just some of the benefits of wider broadband internet usage by a population.

3g,4g,broadband internet,mobile,convergence,LTE,WiMAX,infrastructure,networks

Is it time to get concerned about the lack of news on internet deregulation?  Will this current round of deregulation include bringing in ISP companies that can challenge FINTEL directly?  Or, have we reached the height of the deregulation wave with Digicel’s entrance into the mobile market and high cost of internet access will remain as it is. 

If something is not done about the high price of internet access in Fiji, we can say that the present attempts at deregulation have failed.

Lowering internet costs is directly tied to lowering the cost of doing business in Fiji.  IT backoffice operations have been slow to take root in Fiji because of the ridiculously high price of internet service.

In Fiji, a key challege is providing access to people who live in remote island and rural settings. 

Recent developments in technology have blurred the lines between cellular and broadband internet connections.  This is what is referred to as the convergence between broadband internet and cellular technologies.

An example of this is cutting-edge technology recently launched in the US.  Manufactured by Samsung, the Airave unit (USD $50) is available for sale from a US cell phone provider:

Sprint is offering a new service in select areas of Denver and Indianapolis that delivers customers unlimited mobile minutes while at home. Dubbed Airave, the new femtocell-based system uses your home broadband connection to extend cellular coverage and offer unlimited calling for an additional $15 per month

The benefit of the femtocell-based system should be clear for Fiji.  Deploying cell-phone towers is a very expensive proposition.  But, WiMAX towers can effectively cover a similar range with broadband internet signal at a fraction of the cost. 

Mobile providers Vodafone and Digicel stand to gain by selling these units to subscribers (ensuring brand loyalty) and the people of Fiji are winners because effort can be concentrated on building a WiMAX network coverage that is within reach of every citizen of Fiji.  In order for this to happen, government officials and business leaders have to realize the benefit of working together.

The mobile providers cannot be expected to sign onto ‘open infrastructure’ but the development of this femtocell technology might be the development that could get these companies to support the concept of a public-private partnership to build  WiMax coverage throughout Fiji (see earlier posts on Enabling Universal Access).

For an in-depth discussion of competing 3G and 4G wireless protocols (WiMAX vs. Long-Term Evolution cellular), please refer to this article.

… LTE will take time to roll out, with deployments reaching mass adoption by 2012 . WiMax is out now, and more networks should be available later this year. As for speeds, LTE will be faster than the current generation of WiMax, but 802.16m that should be ratified in 2009 is fairly similar in speeds.

After assessing all the technologies involved, the reasonable conclusion would be that WiMAX technology is where Fiji should be concentrating its effort.  The convergence of broadband internet and cell phone technology is what the future holds.  With right-thinking policy, Fiji has the chance to harness these developments to dramatically improve the reach and quality of connectivity.

Digicel Press ReleaseDigicel Press ReleaseDigicel’s Press ReleaseDigicel Press ReleaseFor decades, Fiji was deemed too far and too small to be a viable telecommunications market.  All that changed last week with the announcement of Digicel’s entry into the mobile market in Fiji.  For a country that suffered through a bloody colonization process and instability in the short years of independence, this signals momentous change.  The high prices and poor service that have historically shackled communications in Fiji will hopefully become a thing of the past.   If we can use Digicel’s track record in other countries as an indicator, they just might be.

Fiji takes a tremendous leap toward competition and economic liberalization with the granting of a operator’s license to Digicel, a Caribbean-based operator with presence in 20+ countries with similar profile to Fiji.

Contrary to prior reports, the government auction process did not hand out two licenses for mobile operators. Digicel pays the government US$10.25 million for the right to be the only mobile operator to go up against Vodafone.

Fijilive says that Digicel has already put in place pieces of an estimated FJ$120 million cellular communications network. According to their own press release, the company also intends to make Fiji the headquarters of its regional operations, eventually employing as many as 250 full-time and an equal number of part-time employees.  You can find the press release attached to this post (Thanks to D).

With much of its infrastructure already in place, the company plans to roll out services in 2009.  Consumers can expect prices to drop sharply and competition for services to increase as Digicel puts on the pressure to become the operator of choice for all of Fiji.  Enough cannot be said about Digicel’s track record in other countries in the South Pacific.

The high cost of cell phone usage under the Vodafone monopoly will soon be a part of Fiji’s past. Vodafone and ATH’s large profits have come at the expense of high prices, zero competition, and stifled economic growth.  For modern economies, communication is by far the most important business tool. With lowered costs for communication in Fiji, the hope is that technology will become accessible to those who may have not been able to afford it before.  Costs to businesses should decrease, increasing overall productivity.

The liberalization in the telecommunications sector bring a wide range of benefit.  Where Vodafone was slow to release anything but the most basic services and features, competition from Digicel will bring to users in Fiji services that they have not seen thus far.  Expect new services in mobile internet, video streaming, and other high-end data services as Vodafone can no longer take your recharge card dollars for granted.

It was not long ago that few strands of cable were what connected Fiji to the outside world.  Satellite communications and fiber-optic cables have brought Fiji a long way since those early days (which were not too long ago).  

There are some serious questions that remain about this move toward economic liberalization and competition. 

How much of the US$10.25 million will go toward the establisment of universal accesss schemes for mobile and internet?  If you have read earlier posts on this site, then you know that universal access is something that is very important to the authors of this site.  We urge Mr. Ricketts to come forward and outline how service will be expanded to rural areas.  Widening access to technology should be a key benchmark by which this current round of liberalization should be measured. 

Additionally, what are the details and specifics of the Telecommunications Authority of Fiji, the new regulatory body being set up to oversee the industry?  More to come, so the only thing we can all do is stay tuned as the developments come in.

education,telecommmunications,deregulation,online,hate speech,hate speech,racism,sms,Africa,Kenya,violence,fiji blog,internet,education,technology,distance learning

In all the emphasis on technology, we cannot lose sight of the fact that technology is only as good as the education of the people who use it.  While its definitely true that improved access to technology will bring up skills in a population, there are signs from across the world that technology can be used to carry through with sinister motives.

The recent outbreak of tribal violence in Kenya saw shocking use of SMS text messaging by people as a tool of violence.  You can find the audio stream on the page with the NPR story.

To find online hate, you do not have to go as far as Africa.Right here in Fiji, the Fishy Times discussion boards are inundated with racial hate-speech on a daily basis.  In another country, this would be a matter of grave concern.   But, because this is Fiji, racial stereotyping and vilification remain part of the public discourse.  No one from the moderator of the forum to the publisher of the newspaper has the courage to tackle this ignorance.

Much of Fiji’s blogosphere, heralded as online outposts of free-speech and democracy activism is made up of hate speech racial invective.  The general attitude toward seems to be that it is ‘healthy venting’. 

So, then why push for technology? Generally stated, technology usage raises the education level of individuals and it teaches problem-solving skills.  Developing the right kinds of curriculum (utilizing existing web resources, since a country has little money to pour into such efforts)  and bringing the focus on things like improving literacy, math skills, health awareness, entrepreneurship, etc. has to be in place to ensure that internet usage in Fiji brings more of the positive benefits we associate with technology.

A great example of how the internet can be used to deliver education content (particularly beneficial in rural education settings) is this online game from Disney. Funded and developed as a join program between a non-profit working on entrepreneurship education and Disney, the game lets children learn the skills that go into developing and running a business.  The motivation for the creation of the game:

Hot Shot Business was launched in May 2003 following a Kauffman Foundation study that found that 41 percent of kids ages 9 to 12 would like to start their own business, but don’t know how.

You can read more about this effort here. 

Technology is all about giving people access to information.  Whether they use it in a positive or negative way, depends largely on how good of a job we do in providing education.

fiji,telecommunications,mobile,license,deregulation,digicel,pacific,network,carrier

The era of increased competition is just around the corner.  So, just how many mobile operators can the Fiji market support? 

According to Tomasi Vakatora of ATH, the market in Fiji consists not only of 400,000+ subscribers within the country, but also some the 500,000 visitors who arrive annually and expect roaming services on their mobile phones. He envisions a situation where two large operators will dominate the market and a third operator will take a much smaller piece of the pie.  The change in rhetoric from the ATH people is commendable, especially since it is unclear whether the company has backed off its efforts to block deregulation efforts by going to the courts.

The Fijilive article which quotes Vakatora at briefing at the South Pacific Stock Exchange also reveals that the auctioning process for mobile licenses will guarantee a launch of services from 2 new providers by October of this year.

The bidders are:

Four companies have been shortlisted to bid for two mobile licences and include Caribbean-based Digicel Pacific, Telecom Pacific Ltd (a joint venture between WR Carpenters South Pacific Ltd and Elandia (Intl), local internet service provider Unwired Fiji and Pacific Spectrum Holdings Ltd (whose directors include Siddarth Nandan and Karen Simpson of Nadi).

One of the two licenses will most likely go to Digicel Pacific, a subsidiary of the Digicel family that offers mobile services in 23 countries.  Originally launched in the Caribbean, Digicel now has developed considerable expertise in offering competitive services in many countries with similar profile to Fiji. Digicel Pacific has already put its infrastructure in place in Fiji, so it appears very likely that Fiji could see up to three service providers up and running by the end of this year.

It’s about time! In all the rosy rhetoric being put forward by ATH on the benefits of deregulation is an unwillingness to acknowledge that their profits of past years have come at the expense of hindered economic competition and missed opportunities for growth.

 Satellite image of Gene:

The recent cyclones in Fiji and subsequent difficulties faced by the authorities in responding to calls for assistance, brings up important questions about disaster planning and management.

On the questions of cost-savings and deployment:

“When we looked at this project, we chose Wi-Max because it meant only having to place three towers over 100 square miles, rather than thousands of access points with Wi-Fi,” Guy said.

The model developed by IBM is projected to save the city more than $1.4 million over the potential 10-year service period compared to other commercial wireless mobility offerings, IBM reported.

Important to note is that a system implemented for disaster management needs of small local government administration can be used to piggy-back the internet connectivity needs for the city. The article also goes on to state that the project will offer wireless internet access for citizens as part of an effort to improve technology availability and increasing the technical skills of citizens.

Wireless communication is not a panacea. It will not cure the cases of diarrhea creating misery for children in the Northern division in the aftermath of Gene. However, the availability of technology and improved education of citizens can only make them take a greater role in planning for their well-being after a disaster strikes.

While it may sound foolish to be talking about wireless networks in light of such critical shortages of things like clean drinking water, we must not lose sight of the longterm need to educate and bring up the awareness level of all citizens in Fiji–so that they may take a more active role in planning for these disasters.

A BBC Report on how tribal people in Africa are using advances in global positioning satelltite (GPS) technology to map out cultural resources in their forest habitat, with the aim to protect both from loggers:

Internet technology is a disrupting force. What that means is that industries (in a wide range of areas) are having new tools introduced that are dramatically changing way things are done. One such area is what is known as GeoWeb, jargon for websites that deal with online mapmaking. A recent article talks about the explosion in users working with mapmaking technologies online:

With the help of simple tools introduced by Internet companies recently, millions of people are trying their hand at cartography, drawing on digital maps and annotating them with text, images, sound and videos.In the process, they are reshaping the world of mapmaking and collectively creating a new kind of atlas that is likely to be both richer and messier than any other. They are also turning the Web into a medium where maps will play a more central role in how information is organized and found.

There really is no limit to what the technology can allows users to do.  It will teach people to think in new and different ways about the environment they live in.Platial, a mapmaking service that bills itself as the “People’s Atlas” and Green Map Systems, a collection of maps from around the globe that help communities map out all sorts of resources are examples of the democratizing power of the web.

It’s important to understand that WiMAX is a new technology being deployed in countries all over the world. Governments across the globe increasingly operate with the understanding that deploying wireless networks are a part of expanding national infrastructure. Buiding a WiMAX network is the 21st century equivalent of building the roads, railways, and ports of yesteryear. Additionally, there is the added expectation of populations of access to the internet being a fundamental human right.

Each country that deploys a WiMAX network faces different hurdles and obstacles. It is important to remember that a country like Russia building a network spanning 11 time zones and a small country like Fiji are at relatively the same point in their experience rolling out such networks.

It is not just a matter of geography and terrain, there are also other issues of dedicating specific ranges in the broadcast spectrum and working out arrangements with existing providers, especially to coordinate building of new infrastructure.

For instance, a July 2007 article from Malaysia describes how the Government has had to step in with incentives to encourage service providers to act collectively in laying out the infrastructure for new wireless networks:

According to the news agency Bernama, if the companies decide to share their infrastructure, the minister also offered financial assistance from the ministry’s universal service fund. The minister added that “If the companies decide to go on their own, they will have to roll out the cost of the towers themselves.” The impetus for suggesting a shared infrastructure comes from the ministry’s dissatisfaction over the roll-out of 3G services in Malaysia. The minister said that after two years, not all of the 3G towers that were planned for construction had been completed.

The dissatisfaction with the slow speed of construction of towers forced the relevant ministry in Malaysia to jump into action.

In Russia, service provider Synterra has had to devise unique solutions to help deploy a national WiMAX infrastructure over such a large geographic area.

Their aim is to utilize partnerships with local service providers in towns with populations larger than 100,000. They are deploying over 1,000 such networks at an estimated cost of US $29,000 each.

These examples are intended to show how deploying a WiMAX network in Fiji will require understanding and cooperation between the relevant stakeholders. It will require a unique public-private partnership, where Government will have to step in with incentives to ensure the rapid deployment of a network that has wide coverage.

To make this a reality for Fiji, both policymakers to service providers will have to think seriously about the importance of universal internet access to the future of Fiji.