Monthly Archive

Digicel, the fastest-growing mobile operator in the Pacific, wishes the Digicel Pukpuk 15’s team good luck in the FORU cup final in Niue on Tuesday April 22.

The Digicel Pukpuk 15’s team, ranked number 53 in the world, will be playing against the Niue national 15’s team, ranked number 69 in the world IRB rankings, in the inaugural FORU Cup tournament finals. The national coach Billy Rapilla said: “I am happy with the selected team. It is a well balanced and fit team which has been selected on merit. They are the best team for the job, we have been training very hard for this final so I’m confident we will come out as the stronger team”.

Digicel CEO, Kevin O’Sullivan, added: “Digicel is very proud that the Digicel Pukpuk 15’s team are playing in the FORU Cup finals. This is a great achievement and we wish them all the best and may the best team win!”

Digicel is the major sponsor of the Digicel Pukpuk 15’s and 7’s national teams. Digicel is committed in supporting rugby throughout the Pacific and is the proud sponsor of Fiji Rugby, Digicel Fiji Sevens and the Digicel Pacific Islanders Rugby Team. Digicel aims on becoming the sponsor of choice throughout the Pacific through its partnership with rugby union.

———————————————————-

Bigger and better PNG Pukpuks down Niue

THE Digicel Papua New Guinea Pukpuks worked up a bit of steam to blast Niue 46-27 to claim the inaugural Federation of Oceania Rugby Union (FORU) Cup yesterday.
The challenge between third-tier rugby nations from Western Pacific and Eastern Pacific has now set new standards in their bid to claw through a new pathway in the near future.
By winning the inaugural FORU Cup, PNG has signalled their aspirations by strengthening their resolve, especially with the overpowering win.

Playing before the Niue home-crowd, the Pukpuks sent shock-waves through the small Polynesian island township with a seven-try routing.

Not even their huge New Zealand-based forward pack could do much to deny the blood-hungry Pukpuks cutting down their opponents with bone-crushing tackles and fearless hit-ups.
The feverish Pukpuks attacked and defended in numbers like possessed mad-men.
The courageous effort of the Pukpuk forward pack led by lock and skipper Willie Rikis laid the foundation for their try-hungry backs to open up at will.

Pukpuk centre Roland Namo had a memorable outing scoring a hattrick, one in the first half and two in the second-half. The young man from Sepik and Central filling in for Raymond Romalus who was a 11th hour withdrawal, performed admirably in what was expected to be a pressure cooker for a debutant starter.
The opening try came off a typical hole-punching run from number 8 George Oki, that set the forwards straight into the pick and go from the tackle site.

Following a quick play the ball went to playmaker Douglas Guise and then a cut-out pass to Namo saw the former University student beat the first line of defence and the full-back at the same time to open the flood gates at the three minute mark.

A relieved PNG coach Billy Rapilla speaking by phone from Niue last night said it was a great win and he was happy for the players enjoying their rugby after putting so much work into their preparation.
“The hattrick by Roland was the icing on the cake,” he said.
“The forwards really stepped up when rumours were flying around before the match that they will be facing a pack of seasoned Auckland-based premier division players,” he said.
Rooney is the forwards coach and Jarrad the coaching mentor.
The other tries were scored by winger Gina Ponda (3:19, 44:40), Wesley Thomas (44:00) and fullback Jack Maraha (3:43).

Namo kicked a penalty and two conversions and Maraha the other two conversions.
The starting line-up: McMann Luke, Wesley Thomas, Adrian Dixon, Rikis, Aaron Miai, Ralph Pombie, Tony Tadabe, Oki, Lawrence Acanufa, Guise, Chris Hogi, Namo, Shadrach Gabhabiliha, Ponda, Maraha.
Reserves used Moses Koko, Shane Amean, Umba Ben, Charlie Maips, Eremas Simba, Daniel Kulmat and Solomon Joseph.

DIGICEL PRESS RELEASE: Amended Telecommunications Act introduces monopoly on the international gateway

Digicel, the fastest-growing mobile operator in the Pacific, expressed disappointment at the amended Telecommunications Act passed by Parliament yesterday. The amended Telecommunications Act seeks to take away Digicel’s right to operate its own international gateway and grants Telikom a total monopoly over the right to operate an international gateway. This will result in substantially higher rates for international calls as well as a lower quality of mobile service.

According to Kevin O’Sullivan, CEO of Digicel Papua New Guinea: “Digicel advocates a regulatory environment for telecommunications including legislation which is pro-competition and one that places the interests of customers first.”

“The amended legislation is a clear step backwards for Papua New Guinea. The consumer will suffer and will experience higher international calling rates and a lower quality of service due to network congestion,” he said.

A staggering number of people have voted in an ongoing text message poll (330,000 text messages to date) saying that they support Digicel operating its own international gateway.

“The people have tasted the benefits of competition and have the right to continue to enjoy them. Lower prices, better quality, increased coverage and introduction of new services such as being able to use your Digicel mobile phone in 91 countries would not have occurred without a fair and competitive mobile market,” Mr. O’Sullivan said.

In support of Digicel’s commitment to offer affordable international call rates and a high quality mobile service to its customers through its own international gateway Digicel has sought orders from the National Courts and the hearing is scheduled for 21 May 2008 (OS No. 156 of 2008 – copy attached).

On 18 March 2008 Telikom requested that the ICCC arbitrate on the international gateway. Digicel welcomes the fact that the ICCC will determine the question of the international gateway.

The ICCC has also been requested by Digicel to arbitrate the final few outstanding commercial matters on domestic interconnection, such as pricing. The final technical preparations for domestic interconnection are being made and the ICCC is expected to set interim rates by the 5 May 2008 with domestic interconnection expected to commercially launch in the second week of May 2008.

The government’s decision to implement the amended Telecommunications Act comes only weeks after a report ( Pacific Economic Survey 2008 ) from AusAID on economic progress in the Pacific. The report highlights the positive impacts Digicel and a competitive mobile market has had on Papua New Guinea. Digicel remains confident however that through a positive working relationship with the Government a practical solution may be reached so that the consumer will not have to suffer from the negative consequences of the amended legislation.

See the Originating Summons here: originating-summons-no-156-of-2008-filed-01-april-2008

Something I found on Danger’s Blog

By Emmanuel Narokobi

Lets Talk Music For a bit

Been a while since I’ve written about music on this blog and with all the Hoo Ha still raging on with Telikom/Digicel/GreenCom etc (see, Sell! Sell! Sell! Come and get it while its Hot!) I need a break. Can they stop talking and actually start doing something about interconnection or in GreenCom’s case get in the ring to add some green to the blue and red mix going on here?!

So anyway Oala Moi, PNG’s strongest advocate for musical copyright protection, sent me an email the other day about an interesting legal development in regards to copyrights. To begin with, I’ve had the opportunity to chat with a number of successful PNG musicians and allot of their hopes and dreams appear to be pointing towards joining the Australasian Performing Right Association or more commonly known as APRA. (You can read about APRA’s involvement with PNG music here).

However it is still a complex road ahead for our artists so looking at what’s happening in Australia should give us a better idea of what we’ll need to sort out here to make it work for us in PNG or anywhere in the pacific as well.

What is APRA?

Essentially the gist of APRA is to provide a management body of some legal standing to allow for royalties for musical work to be paid directly to an artist. So nobody else can use their work without getting their permission first, and if necessary, paying a royalty for this use. APRA as a not-for-profit organisation collects royalties on behalf of its 47,000+ members, and by agreement, for all the copyright owners around the world.

In further detail their website explains it as:

Copyright and royalties

Whenever music is performed in public, communicated or reproduced the songwriter may be entitled to a payment or royalty. This is because the Australian Copyright Act gives writers what are known as ‘economic rights’ which cover certain uses of their music. By licensing and allowing the public performance, communication or reproduction of their music, songwriters may generate income known as royalties.
Click here for more information on copyright and APRA.

Public performances of music include music used in pubs, clubs, fitness centres, shops, cinemas, festivals, CDs or even playing the radio or television. Communication of music covers music used for music on hold, music accessed over the internet or by television or radio broadcasters. Reproduction of music covers making a copy of the work, such as a CD recording, using music in a video or DVD, a mobile phone ring tone, digital download, as production music or in the making of audiovisual and broadcast material.

APRA collects and then pays these royalties to its members throughout the year. Royalties collected from domestic sources are paid twice a year in May and November; overseas royalties are paid as they accrue.
Click here for more information about how royalties are distributed.

Music - a ‘user pays’ system

All businesses, organizations or individuals that choose to publicly perform, communicate, or reproduce copyright music need permission from the copyright owners.

In most instances, an APRA licence provides a simple solution. This is because APRA collectively administers the public performance and communication rights on behalf of the majority of Australian and overseas copyright owners. APRA simplifies the legal process for business proprietors who would otherwise need to obtain a licence from each copyright owner whose music they wish to play.
Click here for more information about how music users are licensed.

Australian Hotels Association v Copyright Tribunal, what happened?

On 10 July 2007, the Copyright Tribunal handed down its decision in relation to a new nightclub and dance party licensing scheme. Click here to view the Copyright Tribunal’s judgment.

In relation to nightclubs, a rate of $1.05 was set for each person per night of operation, to be calculated on the basis of the venue’s capacity. For dances and dance parties, the Tribunal adjusted the rate to $3.07 for each person that attends each event.

At a hearing on 15 November 2007, the Tribunal confirmed that nightclub licence fees payable under the new scheme are to be phased in over a five year period. The rates fixed by the Tribunal per person per night of operation are set out below. On 15 November, the Tribunal also stated that the new dance party rate of $3.07 will not be subject to a phase in period.

On 23 November 2007, the Tribunal issued an Order formalising its decision on the implementation of the schemes. Click here to view the Copyright Tribunal’s Order. The Order provides that the Dance Use licence scheme (nightclubs and dances/dance parties) comes into operation as of 23 November 2007. The annual phasing-in increases for the nightclub tariff will take effect from 23 November 2007 as set out in the following table:

23.11.07 – 22.11.08	23.11.08 – 22.11.09	23.11.09 – 22.11.10	23.11.10 – 22.11.11	23.11.11 onwards
$0.51	$0.64	$0.78	$0.91	$1.05

Annual CPI increases will apply from the second year.

Review of Copyright Tribunal’s Decision

In August 2007, the Australian Hotels Association (AHA) lodged an application in the Federal Court for a review of the Tribunal’s decision of 10 July 2007 in relation to nightclubs (“the Appeal”). The Federal Court may either confirm the Tribunal’s decision or require the Tribunal to reconsider the case.

The Federal Court heard the Appeal on 6 March 2008. The decision was delivered on 13 March 2008 (click here to view the Federal Court’s Reasons for Judgment). The Court dismissed the Appeal. This means that the Tribunal’s Order of 23 November 2007 continues to be effective and the licence fee rates set out above are confirmed.

What?? Does it mean now that I need to pay fees for playing music at my Night Club?

Well for PNG not yet, as we have 2 principal issues and that is getting the Hotels and Clubs to participate and having the actual singers registered with a body like APRA to enforce licensing participation. What the case above basically highlights is a clear and definite legal development in copyright protection for music (and other forms of art). If our local artists push further with an association with APRA then the above revenues could become a reality in PNG. (Keep in mind here though that this post is only referring to revenues from music being played in businesses. Revenues from CD sales and public performances etc are a whole other topic).

From the outset it is a complicated affair and the calculating of licencing fee’s and what is to be billed for within a licence was the main issue involved in the above case. I can imagine Hotels and Clubs suddenly jumping up and down about added expenses and how music licencing in public places will add a Kina to my beer. So licensing fee’s will have to be simplified and calculations made clear before pushing this through in PNG.

Now I hope I don’t make this posting more complicated by adding that the above case wasn’t related to an APRA licence, but a licence from the Phonographic Performance Company of Australia Limited (PPCA). PPCA grants licences for the broadcast, communication or public playing of recorded music (e.g. CDs, tapes, records) or music videos. They then distribute the licence fees they collect to the record labels and Australian recording artists registered with them.

So it appears that in Australia you may need more than one licence to cover yourself.

Why 2 licences?

It’s important to note that if you need a licence of the type available from PPCA, you’ll probably need a licence from APRA (Australasian Performing Right Association Ltd) as well. That’s because there are at least two copyrights in most recordings and music videos:

1. the copyright in the song (lyrics, composition etc.) - licences available from APRA ;
2. the copyright in the recording and/or music video of the song (a particular recorded performance) - blanket licences available from PPCA, or individual licenses from each of the relevant copyright holders.

So who in Australia needs a licence? (Cos this gives us an idea of who potentially may need one in PNG).

The Copyright Act specifies the rights granted to copyright owners. These include the right to allow their recordings to be heard in public (ie. played in a public place such as a retail store, restaurant, fitness centre, etc.). This is known as the ‘public performance right’ in recordings.

To avoid infringing copyright, any business that wants to:

• play protected sound recordings, other than by radio or television broadcast (eg. CDs, tapes) in a public place;

• exhibit music videos; or

• use sound recordings as music on hold;

should obtain a licence to do so from all of the copyright owners for each protected recording or video
they play.

So Back at the Ranch what should we do?

Well the ingredients are here:

• we have a copyright law,
• we have APRA scratching at the door,
• we have a tribe of artists with small mountains of produced music, and
• we have businesses who use music for various purposes in their operations.

So either some bar or restaurant gets caught playing local music without permission and taken to court or these entertainment businesses start getting registered with APRA licencing. On the same note our artists will also need to get registered with APRA to get any benefits. But to be fair to any business that plays protected sound recordings the licensing fees must firstly be relevant to our market size. The licences also need to be simplified as much as possible for businesses to take it seriously and without fear of added business costs.

I think the greatest benefit that could come out of this, could be the kick starting of an actual music industry where musicians can do this as a profession and not a part-time job. But it has to be a simple and straightforward exercise for all involved.

Surprise Move Provokes Microsoft and Antitrust Officials

By Abbey Klaassen

Published: April 09, 2008

NEW YORK (AdAge.com) — Two days after Yahoo’s terse response to a letter over the weekend from Microsoft’s CEO, the Sunnyvale-based portal announced it will begin testing Google’s search-advertising service.

The move proves that in the online space, everyone’s in “co-opetition” — and that it’s hard to predict which strangely matched fellows will get in bed together next.

As part of the test lasting up to two weeks, Yahoo will deliver Google ads alongside Yahoo’s own search results. Yahoo will only include search results from its own site, not search results from properties that partner with Yahoo to use its search technology, and will not include more than 3% of Yahoo’s search queries.

‘Dangerous bear hug’
“Assuming the test worked, that would give Google an effective monopoly over search, which wouldn’t be healthy for marketers or the overall internet economy,” said Bryan Wiener, CEO of New York-based agency 360i. “It seems like Yahoo’s running away from Microsoft into a potentially more dangerous bear hug.”

But other parties are also stepping up to wrap their arms around Yahoo. The Wall Street Journal, which also first reported Google ad pact, said Time Warner and Yahoo have continued talking and are very serious about a deal that would have Time Warner contributing AOL plus cash in exchange for a 20% stake in a combined entity. Yahoo would woo shareholders by promising to buy back some of its stock (with the cash from AOL) at a price higher than what Microsoft is offering. And partnering with Google on search could help sweeten the deal.

Meanwhile, The New York Times reports that News Corp. is talking to Microsoft about joining the Yahoo bid. While News Corp. CEO Rupert Murdoch appeared to dismiss his earlier interest in Yahoo at a recent investor conference, what he really said is a bit more nuanced — that he wasn’t looking to get into a fight with Microsoft.

Microsoft announced Feb. 1 that it would offer $31 a share to acquire Yahoo, betting on the company to help it close the search-advertising gap between Microsoft and Google and bolster the software giant’s online ad audience. The merged entity would still vastly trail Google in search share: In February, Google accounted for almost 59.2% of consumer search queries, Yahoo 21.6% and Microsoft 9.6%, according to ComScore. But the disparity is even greater when looking at share of search ad dollars, an area in which Google commands closer to a 70% share.

Microsoft responded with a statement from its general counsel, Brad Smith, charging that an agreement between Yahoo and Google would consolidate 90% of the search ad market. “This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo. We will assess closely all of our options.”

He went on to assert what Mr. Ballmer said over the weekend, that Microsoft’s proposal is the only real alternative put forward.

Officials are watching
Within 30 minutes of Yahoo’s announcement, U.S. Sen. Herb Kohl (D-Wis.), chairman of the Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy and Consumer Rights, also weighed in, saying that his committee will be “following closely” to see if the test leads toward a permanent agreement.

According to The Wall Street Journal, the ad pact shouldn’t stand in the way of a Microsoft acquisition, but is more a tactic to show Yahoo’s investors that the portal has other options.

And, oh yeah, it’s sure to stoke Mr. Ballmer’s ire over the deal.

Yahoo wouldn’t comment on the nature of the timing or the potential relationship with Google, but in a statement said its board of directors is “exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements.”

Looking ahead
Mr. Wiener of 360i said that should a long-term deal between Yahoo and Google emerge, it would be short-sighted on Yahoo’s part.

“The thing Yahoo really has going for it is this great property that can serve both search and display,” Mr. Wiener said. “Google, buying DoubleClick, is trying to create that same sort of model. If Yahoo gave up search ads, it would hurt its ability to sell integrated marketing buys over the long haul.”

B Mobile up for grabs

TELIKOM last night admitted talks are being held for the possible sale of equity in Papua New Guinea’s mobile phone company, B Mobile.
A proposed partnership would “infuse capital and technical expertise” to boost B Mobile, a statement from Telikom board chairman Gerea Aopi said.
This follows days of speculation that Econet, the African company with major communications interests in New Zealand, was joining forces with a major investment company, General Enter-prises Management Services (GEMS), to buy a major share in B Mobile.
B Mobile has come under heavy pressure from Digicel, one of two foreign companies that have been licensed to operate mobile phone networks in PNG.
Last night’s statement said talks had been held between “the shareholder” (the Independent Public Business Corporation, the Government’s company) and potential investors, including GEMS.
“No firm plans are as yet on the table,” Mr Aopi said.
Meanwhile, IPBC acting managing director Glenn Blake and Public Enterprises Minister Arthur Somare, were unavailable for comment and believed to be in Australia. Highly reliable government sources told the Post-Courier yesterday the proposal had been cited for IPBC to sell 50 per cent of the state-owned mobile phone company, under a public private partnership deal.
GEMS, which has one of the world’s powerful men, Dr Henry Kissinger, as an adviser, manages millions of kina in funds around the Pacific and Asia region. It is a private equity management group which bankrolls investment in many areas. “Customer service and the national interest were the drivers of the proposed partnership, which would see a new partner, infuse capital and technical expertise to enhance the expansion and upgrade of the B-Mobile network,” Mr Aopi said.
“In line with the Government’s public-private partnership policy, and to deliver maximum value to the shareholder and the nation, the board of Telikom will consider and evaluate any proposal that will deliver value,” he added.
He said if such a proposal was made, Telikom would ensure that appropriate valuation and due diligence of the B Mobile business was made.
“Any plan will be considered by the board of Telikom, with a view to furnishing a recommendation to the shareholder. This meets the Government’s and IPBC’s directive to prepare Telikom to be a strong player in a competitive telecommunications industry,” Mr Aopi said.
“The Telikom board believes it can deliver best value to its customers, and to the nation, through a public-private partnership that will ensure B Mobile’s continued leadership of the mobile phone market in Papua New Guinea.”

Abe warns GEMS

THE competition watchdog yesterday revealed that a bidder for the Government mobile company B Mobile already has control of rival company, GreenCom.
The revelation could wreck negotiations for the private investment company, General Enterprises Management Services (GEMS) to buy a share in B Mobile.
The Independent Consumer and Competition Commissioner Tho-mas Abe said yesterday GEMS was believed to have a controlling interest in Green Communi-cations (GreenCom), the third mobile phone company in Papua New Guinea.
GreenCom has come under pressure from the ICCC for not taking up its licence and beginning operations like the other foreign licence holder, Digicel.
The Post-Courier last week broke the news that GEMS was manoeuvring to take up equity in B Mobile, which is a part of the government-owned Telikom PNG Ltd.
On Tuesday night, Telikom board chairman Gerea Aopi issued a statement saying that talks were being held between GEMS and the Independent Public Business Corporation about selling part of Telikom.
Mr Abe said in a statement GEMS should not be courting B Mobile or Green Communi-cations, the yet-to-be launched Indonesian-PNG owned company.
“If the Telikom chairman is correct in saying that the IPBC is talking to GEMS about selling part of Telikom, that could create a real problem in the mobile telecommunications market in PNG,” Mr Abe said.
“GEMS can not have a major interest in two of the three mobile companies (GreenCom and B Mobile) – that would seriously corrupt the introduction of mobile competition in PNG.”
The watchdog revealed that GEMS also has one of the world’s most influential men of the 1980s as an adviser, Dr Henry Kissinger, and that it has a “controlling interest” in GreenCom.
“As we understand it, General Enterprises Managment Services (GEMS), a Hong Kong based private equity firm, currently has a controlling interest in GreenCom, the second new mobile phone competitor to B Mobile and Digicel,” Mr Abe said.
He said the Independent Consumer and Competition Commission (ICCC) had told GEMS to dispose of its interest in GreenCom and “terminate” its negotiations with the Government or the IPBC, the entity responsible for Telikom and which comes under the political leadership of State Enterprises Minister Arthur Somare.
“GEMS should not attempt to have interests, direct and indirect, in two of the three mobile phone companies. That would be bad for competition and bad for the people of Papua New Guinea,” he said.
The commissioner said ICCC became aware of GEMS dealings with the IPBC “very recently” and contacted GEMS only after chairman of the Telikom board Gerea Aopi spoke yesterday of the GEMS-IPBC dealings.
Mr Aopi, on Tuesday, said the proposed partnership deal was driven by “customer service and national interest” so that a new partner could inject “capital and technical expertise to enhance the expansion and upgrade of the B-mobile network”.
“The ICCC will continue to monitor the situation closely to ensure we all get the benefit of the strongly competitive, open mobile phone market,” Mr Abe said.

By Malum Nalu

ANYONE familiar with computers will know the famous stories of the enterprising young men who started Google and Yahoo in the USA.

That, however, is not a far-fetched dream. What started off as a dream started off by a group of visionary young computer students at the University of Papua New Guinea has now become a thriving business.
Itel (PNG) Microtech is a young new Information and Communications Technology (ICT) company started by young graduates of UPNG, which specialises in removing computer viruses.

It was founded as a student academic group at the UPNG Waigani campus in 2006 by Panu Kasar, a young man of Madang and Morobean parentage, doing IT Services of PC repairs, printing, scanning and computer virus removal.

It was a group which consisted of students of the Electronic Computing Strand. The aim was to start a business of the same name after completing studies. It was initially started as Itel PNG, IT for information technology and EL for electronics.

So strong was the desire to start business, however, after completing school, all members went their own ways, due to the hardships in life faced outside the campus, leaving only Kasar. Having determination and courage of starting the business, which he initiated, he pursued the dream, while everyone who knew, were watching to see if he would still continue with the idea or give up. Giving up would be an insult to him, so against all odds, he struggled all through 2007, putting up notices on public notice boards and doing part-time freelance jobs.

By then, he had saved enough money which enabled him to purchase more equipment. He also registered the business and opened a bank account within the same year. He was then ready to provide competition to existing firms and realise his dream of being founder of his very own IT firm.

Upon registration with IPA, the business was registered as Itel (PNG) Microtech in 2007. Business started at a residential house at Waigani until November 2007, when an office space was sought at Five-Mile. More equipment was purchased including new computers for the business.

With the new office, the client base increased, which saw contracts obtained from new business partners.
Four new members added extra manpower to the business, giving strength and hope to the new business.
“It took a year to fully experiment and carefully test the IT industry before drawing up marketing strategies,” Kasar says.

“The boys had decided to focus at a more specific area than general IT. “Using the Itel (PNG) Microtech banner, we initiated The PC Clinic to specialise in Computer Virus Removal and Scanning. “It is sort of a PC Pest Control Service; it became one of the first to fully specialise in that field of IT, that is, virus removal.
“During our one year of experimenting, we tested all sorts of viruses and made a tally of them.
“From these, we were able to purchase specific software, removal tool and fixes for each viral threat.
“We even went as far as infecting our own computers and stayed up all night to figure the counter active measures through careful study of their behavior patterns and symptoms.
“With each exposure, we have gained invaluable knowledge and experience in this specific field, and it is our dream to become the ‘best’ as the years go by.
“This service is in great demand, due to the increase in PC users in Port Moresby.
“Latest threats identified by The PC Clinic are the destruction of data by a virus known as infostealer aka W32.Gammina.
“This virus hides all data in the flash USB disc, making files inaccessible.
“The files exist but they become hidden for the user to access.
“This has caused frustration to the point that the user formats the USB drive, destroying all the data present.
“The PC Clinic provides solutions to this through data recovery techniques.
“This problem has caused businesses in Port Moresby millions of kina in the second half of 2007.”
“The PC Clinic’s basic services are:

* PC virus detection, removal and monitoring;
* Anti virus software installation
* LAN firewall configuration;
* Data recovery from USB and external drives;
* PC Boot failure repairs from infections; and
* Anti virus software definition updating.

The PC Clinic has established business ties with various government departments as well as business houses.
It monitor their systems on a monthly basis, updating their anti virus software and checking their infection rates.
Apart from The PC Clinic, other services are also provided such as website designing, basic PC repairs, database designing and management.
“Our aim is to further the Gospel of the Lord Jesus Christ by supporting Ministry,” Kasar reveals.
“We believe in ourselves and want to become role models for upcoming PNG businessmen and women in the technological industry.
“It is our desire to tell Papua New Guineans that all success is a result of hard work and nothing comes free.
“Lazy people have no place in this country!
“ If only Papua New Guineans stop criticising and start doing what they were born to do, this nation would rise up to the competitive global arena.
“It’s not about money but simply doing what you were born to do, excelling in it thus fulfilling the purpose of your life by helping others”.
The PC Clinic Crew can be contacted on telephone 325 8912 or 6890616 or72072701 and email pkasar@mail.com .
Their service is on the spot and available 24 hours a day.
mnalu@thenational.com.pg

By Dionisia Tabureguci of Islands Business Magazine

It is time to bring out those pet ICT projects. The search for digital content in the Pacific has begun and is being spearheaded in the region by New Zealand World Summit Awards (WSA) coordinator,  Jan Bieringa.

She is scouring the Pacific for projects that focus on e-content in the hope to find potential entries for the upcoming WSA 2009.

“We submitted five Pacific projects last year and hope for maybe another eight this year,” said Bieringa.

“We will be promoting the idea in Rarotonga on the first week of September to coordinate with the PICISOC (Pacific Islands Chapter of the Internet Society) conference.

“What we’d like to do there is to select from the top 40 entries from around the world (that won the last WSA), including some from the Pacific and from New Zealand, and showcase them at the conference.

“It would then be up for the week of the conference and if people are then interested to take that roadshow to their own countries, hopefully we could make it available so people could tour it around the Pacific.

“And simultaneously then, we would be looking for new projects in the Pacific that we could enter into next year’s competition.”

Bieringa explained the WSA started in 2003 “as a small but significant event within the bigger umbrella of the World Summit on the Information Society (WSIS).”

Now embraced by 186 countries, the bi-annual event endeavours to showcase entries in e-Health, e-Learning, e-Science, e-Culture, e-Government, e-Business, e-Entertainment and e-Inclusion.

The major aim is to shift the focus away from technology, networks and access issues to the actual applications and the resultant digital content.

“The infrastructure and access issues are what people often think about and they’re easiest to think about in the traditional ICT thinking. When you start investing in making local content for local use, it is more expensive and much harder to find funding for.

“So the idea of WSA is to try and see if that discussion can be stimulated and enhanced as well as to try and shift the money into creating opportunities for people to make things,” Bieringa said.

The WSA, she added, is a global showcase of 40 outstanding projects in eight categories—all with a special emphasis on those which show the benefits of ICT for the development of communities and society at large.

In her search this year, Bieringa is running against time as the organisers of the WSA have brought the timeframe of the selection process forward.

National contests and pre-selections are now scheduled to take place between April and November 2008 while deadline for registration will be on January 30, 2009.

The important deadline is February 2009 when products are to be checked in—this would mean that by then, all entries, including those from the Pacific have been identified by coordinated like Bieringa.

While the ICT industry in the Pacific may still be very green and much public attention is still being put on connectivity, infrastructure and technology, Bieringa’s effort to find Pacific entries for last year’s awards did result in a number of good Pacific entries.

“I was seeking eight entries from the Pacific and ended up with five, all of which were very impressive,” said Bieringa, who was also one of the judges in last year’s awards.

Last’s year’s highlight—which incidentally received almost no public attention in the Pacific—was the success of the Pacific’s e-Culture entry, a Participatory 3D Modelling for Resource Use, Development and Planning and Safeguarding Intangible Cultural Heritage (P3DM).

Using Global Positioning System (GPS), the Ovalau P3DM resulted in the production of a three-dimensional map of Ovalau island in which were merged geographical information of the island with traditional knowledge imparted by elders from 28 villages.

With partners that included Fiji’s Native Land Trust Board, WWF Fiji, Locally Managed Marine Area Network, Department of Culture and Heritage and the Fisheries Department, the local island community now uses the model as a tool in the preservation and development of their natural resources as well as in the preservation of traditional knowledge.

The Ovalau P3DM went on to win the e-culture category of the WSA (more information on the Ovalau project can be found on: www.iapad.org <http://www.iapad.org> ).

“It might be difficult to find another bunch of really good applications this time around but you know, it’s not about winning or losing. It’s more about promoting this dialogue in the Pacific because I think it can really genuinely make democracy and communication much more efficient.

“I think it’s a way of strengthening the cultural, economic and environmental arguments and also puts the Pacific into the global dialogue which I think is really important,” said Bieringa.

Interview with Dionisia Tabureguci of the April edition of Islands Business

In 1995, Emmanuel Narokobi entered Law School at the University of Papua New Guinea and spent the next four years studying for a legal career.

His father, Camillus Narokobi, was a lawyer and ran the family law firm Narokobi Lawyers in the PNG capital, Port Moresby. His uncle, Bernard Narokobi—an active politician and former government minister who served under two Prime Ministers and later became Opposition Leader—is also a lawyer. And so are his cousins. Law, it seems, runs in his blood.

Twelve years later in July 2007, Narokobi was signing contract papers with new mobile company Digicel PNG to develop and maintain its website. While law was steeped in his blood and ran in the family, the lure of the digital world proved too strong for the enterprising young man from East Sepik Province.

At the time he was signing papers with Digicel, Narokobi was already owner and managing director of Masalai Communications, a small Port Moresby-based interactive media company that specialises in website development, SMS marketing, digital signage and touch screen kiosk.

What began as a personal interest in websites in 1999 while he was still at law school had progressed to become a modestly successful and promising home-grown outfit poised to absorb opportunities in a liberated local telecommunications environment.

“I started around 1999,” said Narokobi, who had spent his childhood years in PNG, the United States and Spain and five high school years in Australia, as a result of his father’s movements for study and work. Internet services in PNG started around 1997.

“When I started, it was very hard to get work, the demand was not there and I pretty much struggled to make money in the first couple of years. I had initially thought of doing a classifieds website which I got started. Back in 1999 though, not too many people in PNG were on the Internet, so it was pretty much a flop. So to make extra money, I began teaching myself how to develop websites.”

The last update on the company’s website was dated October 30, 2007. By then, Masalai Communications had managed to sign up some 45 websites on its portfolio —a range of businesses from government departments to private firms and organisations.

Radical switch: It may have been a radical switch in the early days but the career change was definitely a “no regrets” move for Narokobi.

His earlier foray into classifieds website made him realise there was a lack of good PNG websites, “good in terms of design and functionality”. It led him to believe he could help outsiders understand his country better through well designed websites.

Masalai Communications was then incorporated in 2001. The word “Masalai” meaning “Spirit” in Tok Pisin (PNG Pidgin), explained Narokobi, roughly translates to “a spirit that watches over a certain part of the forest or rivers. I took from the name the qualities of a strong guardian and something you could not see but could feel the power of,” Narokobi added.

Masalai’s “unseen but potent spirit” has no doubt taken it quite a long way from its humble dial-up beginning in Narokobi’s bedroom.

“The business today has expanded its services into Digital Signage in retail outlets, where we sell advertising on flat screens; SMS marketing such as our involvement with the SMS voting for the Ice Discovered Show, which is a PNG version of American Idol, and Touch Screen Kiosk, which we are currently developing for a client,” he said.

But this success was not without challenges. Funding and Internet access had been and to some extent, still are, major hurdles.

The funding challenge and shaky start were mitigated in a big way through strong support from family and friends. The Internet access bit is something Narokobi hopes would blow apart in the not-too-distant future, considering the changes going on in PNG’s telecom market.

“Internet access is definitely the biggest ICT hurdle in PNG for both education and business development. It has to be cheaper and it has to be more readily available and so the only way to do that is to introduce competition at the undersea Internet cable level, at the international gateway level and at the service provider level.

“For PNG, everyone has seen the benefits of competition in the mobile industry upon Digicel coming to PNG, so I’d love to see another tsunami hit PNG of the Internet access kind,” he said.

While that sort of readiness to accept new forces in the market may not be forthcoming at government and network operator level in PNG and the rest of the Pacific, it is easier to find at small operator level like Masalai Communications.

When ISLANDS BUSINESS interviewed Narokobi last month, the company was on its toes with the Digicel PNG job, so far one of its biggest and very active clients.

“I think there are two key points to succeeding with technology initiatives for smaller Pacific companies. Firstly, by having a tight network of friends, colleagues and business associates who can assist in identifying opportunities for you. You also have to be technically up-to-speed with your IT capabilities, resources and what’s happening in the market.

“The second part requires that you think smarter in terms of what a multinational would be after in a given market so that you don’t compete with them but you find a niche where you can exist without the pressure of competition.”

And in these days where the ordinary Pacific islander is often seen struggling to make it in business, Narokobi’s “getting there” recipe is simple: believe without a doubt that you can make your idea work and ask a lot of questions.

By Emmanuel Narokobi

Just a list of some more PNG related blogs and personal pages. Some I’ve already linked some I’ve never seen before. But just a another list really.

Bill’s Eye view of PNG  www.users.bigpond.net.au/billsview Bill Purcell’s home page focuses on Papua New Guinea aviation, and includes information on Tok Pisin.

Bomana Nights  bomana.blogspot.com A blog by Larissa Conolly, an Australian volunteer in Papua New Guinea.

Cam and Jane in PNG  camnjaneinpng.blogspot.com The weblog of two Australian volunteers in Alotau, Milne Bay Province.

Cilla’s Haus  www.geocities.com/bunex81 A girl from Lae who lives in Tabubil, Western Province.

Ford Family  pngfords.blogspot.com Weblog of an ex-pat family in Papua New Guinea.

Gadoeno Michie from Korobosea, Port Moresby, Papua New Guinea  www.michie.net/gadoeno/index.html Gadoeno Michie’s home page.

Geraldine Michie’s Home Page  www.michie.net/geraldine/index.html Photographs and information on Geraldine Maibani (Michie).

Islandbaby  islandbaby.blogspot.com “Ricebag”’s weblog from Papua New Guinea.

Keith Buxton  www.keithbuxton.com Information about his autobiography during Buxton’s life in Papua New Guinea from 1956-1988.

Koroboro International School News  koroboronews.blogspot.com A weblog about the Koroboro International School in Papua New Guinea.

Lock Family Ramblings  lockfamilyramblings.blogspot.com/index.html Blog for an ex-pat family in Papua New Guinea.

Luke’s New Website  lukesnewplace.com Personal Web site of Luke Lucas, former Electoral Commissioner of Papua New Guinea. Inlcludes information on artist Mathias Kauage.

Mai PNG  www.angelfire.com/country/papuanewguinea Photos and information on Papua New Guinea.

Malum Nalu  malumnalu.blogspot.com The weblog of Malum Nalu, a journalist from Port Moresby.

The Masalai Blog  masalai.wordpress.com A blog by Emmanuel Narokobi.

Max and Kaure in Alotau  maxnkaureinalotau.blogspot.com Maxine Nadile’s weblog.

Nick & Paula  nick-paula.blogspot.com Pictures and stories from Papua New Guinea.

The Obregon Family Blog  theobregons.blogspot.com Medical missionaries in Kokopo, East New Britain Province.

Outback to Jungle  cleanacleo.blogspot.com Weblog of an ex-pat volunteer in Papua New Guinea

Papua New Guinea Life  pnglife.blogspot.com A blog by an Australian volunteer in Papua New Guinea.

Pink Ukulele  www.pinkukulele.com Carolyn is a volunteer in Port Moresby, Papua New Guinea, working on an adolescent sexual and reproductive health project.

The polymathic obsessions of Thomas H. Slone  www.geocities.com/thslone Contains a bibliography of PNG folklore and some folk tales.

Rabaul Daily Photo  rabauldailyphoto-jules.blogspot.com The weblog of Jules, a teacher in Kokopo.

Robert @ PNG  www.schilt.info Robert Schilt’s weblog.

Save PNG  savepng.blogspot.com A PNG marine officer’s weblog.

Shiin’s Home Page  members.blackplanet.com/shiin Shiin has pictures from her visit to Japan.

Simulai Michie’s Home Page  www.michie.net/simulai/index.html Includes information on the Michie family.

Sir Buri Kidu KGB  bigtuna.lukesnewplace.com/bigtuna.html Details the inauguration of Sir Buri Kidu KGB as the first PNG born Chief Justice in The Supreme Court of Papua New Guinea. Find speeches and profiles or judges, diplomats and lawyers.

Stories about living in Papua New Guinea  www.nancysullivan.typepad.com Nancy Sullivan’s entries of a memoir about living in Papua New Guinea.

Takuu Film  www.takuufilm.blogspot.com A Blog on the Takuu Atoll by Briar March and Lyn Collie.

Tammy Titipu’s Home Page  www.geocities.com/hotspice_122/homepage.html She is now attending Lubbock Christian University.

Tasiana Michie’s Home Page  www.michie.net/tasiana/index.html Includes information and photographs of the Michie family, Papua New Guinea Stamps and airplanes.

A village, an anthropologist, two goats and a meal…  lucy.ukc.ac.uk/Sonja/Oliver/hoploi/hop1.html A snapshot of village life in Hoploi, Papua New Guinea, by Oliver Kortendick.

Welcome To Nokondi Land  jkbunefa.tripod.com Joe Nenecopa’s personal page.

Welkam to my World.. this is History  davidephraim.tripod.com David Ephraim’s Web page.

Where in the World are the Wilsons?  witwatw.blogspot.com Sandy and Narelle Wilson in Papua New Guinea.

 

By Emmanuel Narokobi

On Tuesday I was invited by the World Bank to attend the Video Conference seminar for the World Banks launch of the East Asia & Pacific half yearly regional update. I’m not exactly sure why I was invited because I’m not an economist and allot of the language flew over my head, but in any case it was still a throughly absorbing event for me.

———————————————————-

The seminar was based on the paper, ‘East Asia Update: Testing Times Ahead’ Economies Still Buoyant Amid Faltering Global Economy, Says World Bank’s Six-Monthly Review. The basic gist was as follows:

With the slowdown of the US economy, what spillover effects will it have on East Asia and the Pacific? With China as a powerful regional locomotive, has the region “decoupled” from the US economy? Will the region’s economic fundamentals be strong enough to help it weather the volatility? With its large reserves, could the region withstand further shock if the financial situation in the US worsens? These are some of the questions addressed in the report.

[Vikram Nehru, World Bank Chief Economist for the East Asia and Pacific Region, will be online on Tuesday, April 8, at 11:00 a.m. EDT to discuss the findings of the Update. You may access the new edition at www.worldbank.org/eapupdate. Read more about Vikram Nehru]

————————————————————

There were a handful of us there and I came in a little late so I was too shy to have a good look around to see who was there or if I knew anyone. The Seminar was held in the World Bank Development Cooperation Centre on the 14th Floor of the Deloitte Tower. The office boasts a high speed satellite link for it’s video conferencing services. This is the first time I’d been to anything like this and I’m sure those of you who didn’t go to University in PNG may be familiar with this but I was quite impressed on a technology level. (Had some ideas going through my head about using the facilities for business/technology/entrepreneurship seminars, which could be fed live to PNG so we could participate without leaving Port Moresby).

Mr. Nehru’s seminar was being broadcast from Tokyo, so along with PNG and Tokyo, Beijing, Ulaanbataar, Dili and Sydney all joined in for the presentation. After the seminar each country was shown live on camera to ask Mr. Nehru questions. I was dissapointed that our country did not ask more than one question. Is it a PNG thing to be embarrassed all the time so we don’t meaningfully participate in opportunities like this? I would have asked a question myself if I knew how to word it like an economist, I swear they speak another language.

Essentially the message that I got from it was that, there was now a re-balancing of trade imports in the Asia Pacific region and so the US now accounted for less than 30% of that which is a huge shift from say 10 years ago. In doing so the US situation now has less of an impact on the region although the decline was important. Again, I’m not going to try and even attempt to explain the economic implications etc, so if you want to read a round up here is a good blog to have a look at.

Another point I picked up on was that commodity prices have increased drastically and PNG has greatly benefited from that with exports. But on an imports side that makes food especially expensive. So on a regional and global level there is still not enough agricultural production and yields have to be increased to keep costs low and for food security. There is much debate and talk about PNG re-investing in agriculture as opposed to the heavy reliance on mining revenues and clearly PNG is well poised geographically to be a major exporter of food. But if only?? and we all know too well the hurdles for us reaching our potential here.

————————————————————————————–

So getting back to the report, it appears that from the Pacific they only covered Fiji, Solomon Islands and PNG. I’ve put them below for us to read:

Fiji

Since the takeover of Fiji’s Parliament in December 2006, the Interim Government led by the military commander has continued to face international sanctions by some donors. These include the suspension of parts of the aid program and immigration restrictions. Restoration of bilateral relations with key external partners remains largely dependent on the Interim Government’s demonstrating a commitment to return Fiji to democracy. National elections are expected in the first quarter of 2009.

Fiji’s real GDP contracted by an estimated 4 percent in 2007, largely reflecting the effect of recent political events on the tourism and construction sectors. Tourism earnings fell by an estimated 20 percent while construction activity declined by one‐third in the first 9 months of the year. Sugar production declined by 23 percent due to unfavorable weather conditions and supply chain inefficiencies. Copra production declined by 9 percent. Garment export earnings have remained subdued since the expiry of the US preferential agreement in 2005.

The trade balance showed some improvements in 2007. Export earnings rose slightly (led by mineral water, fish, and timber), while imports dampened, reflecting tightened credit conditions (following the imposition of credit ceilings on commercial banks). The trade and current account deficits remain large at approximately 27 percent and 16 percent of GDP, respectively. Despite the current account deficit, the balance of payments recorded a small surplus largely attributable to foreign direct investment. With the import cutback driven by investment goods, investment declined from 19 percent of GDP in 2006 to approximately 15 percent in 2007. Domestic demand weakened in 2007, as indicated by slower domestic credit growth (from an average of 28 percent in 2006 to 6 percent in September 2007), sluggish employment conditions, fall in remittance receipts, and declined imports of consumption goods.

On a positive note, gross foreign reserves stabilized in 2007 to reach US$618 million as of December. Excluding foreign assets of non‐bank financial institutions, gross reserves were estimated at US$510 million at end‐2007 (sufficient to cover approximately 3 months of imports).

The budget was in near balance in 2007 through a substantial reduction in capital expenditure and a cut in civil service wages. The 2008 budget targets a fiscal deficit of 2 percent of GDP, focusing on consolidating Fiji’s fiscal position and reducing public debt from 50 percent to 45 percent of GDP over the next 3 years.

Inflation for 2007 was estimated at 4 percent, reflecting increases in excise duties and higher food prices following supply shocks (flood‐ and cyclone‐related losses). However, it jumped to 7.4 percent at end‐January 2008 as higher global oil prices affected domestic transport and electricity costs, and higher international wheat prices and cyclone‐led disruptions in local supply increased food prices. The inflation rate projected for end‐2008 has been revised upwards to 5 percent.
A modest recovery of approximately 2 percent real GDP growth is forecast for 2008 linked to expected growth in tourism. However, economic recovery remains vulnerable to political instability, natural disasters (cyclones, floods), high global oil prices, and uncertain relations with key development partners. Reforms in macroeconomic policy, public sector management, land, and the sugar sector are much needed but difficult to implement under present circumstances.

Solomon Islands

Macroeconomic stability has been maintained since the start of the Australian‐led Regional Assistance Mission to Solomon Islands (RAMSI) in 2003 to help end the civil conflict in the islands. Law and order has been restored. Economic growth averaged 6 percent in 2003–07, but is heavily reliant on logging and foreign aid. Per capita income is the lowest in the region.

The political environment remains fluid. A motion of no confidence was recently voted against the Prime Minister. A new Prime Minister was elected on December 21, 2007 and has formed the Coalition for National Unity and Rural Advancement. The new government has publicly stated support for RAMSI operations and is looking to improve cooperation with RAMSI.

Non‐logging real GDP grew by an estimated 3.5 percent in 2007, aided by increased production of palm oil, cocoa, and copra boosted by rising international prices. Including logging activity (10 percent of GDP and 70 percent of exports), real GDP growth was estimated at 5.5 percent in 2007. However, the current unsustainable logging rate implies a rapid decline
in timber stocks ending in depletion by 2015.

The current account deficit widened from 26.5 percent of GDP in 2006 to an estimated 40 percent of GDP in 2007. The increase was attributable to a larger food, fuel, and investmentrelated import bill. Gross foreign reserves are expected to remain at reasonable levels— covering approximately 4 months of next year’s imports of goods and services—thanks to
continued strong official development assistance and FDI linked to palm oil and gold mine projects.

The budget surplus narrowed from 4 percent of GDP in 2006 to an estimated 0.5 percent of GDP in 2007. The reduction stemmed mainly from higher spending related to disaster relief efforts and an increase in the public wage bill. A government proposal to raise reference prices for logs as of October 2007 was deferred, resulting in a loss of potentially significant log revenue collection.

Government initiatives to regularize debt and its current policy of no new borrowing have reduced debt levels. Total public debt declined from 73 percent of GDP in 2006 to 67 percent in 2007, and is projected to continue to decline in the medium term. The external debt service ratio is estimated to have fallen from 7 percent of exports in 2005 to 4 percent in 2006 and 2007. However, the current debt burden remains at high risk of distress.

Inflation decelerated from 8 percent in 2006 to approximately 6 percent in 2007, led by easing pressures on prices for domestic food and other goods. On the other hand, rising prices for diesel and petrol continue to pose risks to the inflationary outlook.

Real GDP growth of approximately 4 percent is forecast for 2008, with non‐logging growth expected to strengthen to 4 percent–5 percent as new investment projects commence.

Reforms for improving natural resource management and revenue collection, continued fiscal discipline and targeted spending on priority areas, and reducing the cost of doing business (improving utilities, transportation, and the predictability of the investment environment) remain important for long‐term sustainable growth.

Papua New Guinea

A prudent macroeconomic policy mix together with favorable terms of trade trends has helped Papua New Guinea maintain macroeconomic stability, strong external balances and solid economic growth over the past five years. Formal employment, although very low as a share of the labor force, has also expanded. The country, however, faces difficult
development challenges, including weaknesses in governance, infrastructure, human development, the business climate, public financial management, security, and service delivery.

The political situation in PNG has stabilized in recent years. The coalition government headed by Prime Minister Somare between 2002 and 2007 was the first since independence to serve a full term. The mid‐2007 national elections returned PM Somare’s coalition to power. Political stability and the resulting greater consistency of policies have contributed to the recent strong macroeconomic performance.

In the past five years, PNG has seen the longest period of uninterrupted growth since independence in 1975. Real GDP growth in 2007 climbed to around 6 percent, the highest in a decade. Growth was led by construction, telecommunications and export‐oriented agriculture (coffee, copra and palm oil) and mining. Formal employment across most sectors has grown by around 10 percent annually since 2005. Growth is expected to continue although structural constraints are likely to slow its pace over the medium term.

The fiscal position remains strong. Budget revenue is booming as world market prices for PNG’s key exports (oil, copper and gold) reach new highs. The government has prudently restrained expenditures, directing part of the windfall mineral revenues to public debt repayments and saving a part in trust accounts for one‐off investment spending in the future.
As a result the central budget had a strong fiscal surplus (around 6 percent of GDP) in both 2006 and 2007. The non‐mineral budget deficit, meanwhile, remained relatively steady over the past two years at around 7‐8 percent of GDP, indicating that the injection of windfall revenues into the economy remains under control. By end‐2007 the windfall revenues in trust accounts designated for future investment reached about 17 percent of GDP. The 2008 budget and the newly prepared medium‐term fiscal framework envision continued fiscal restraint and expenditure smoothing over the commodity price cycle.

The public sector debt burden has been substantially reduced in the past five years. Healthy growth, an appreciation of the real exchange rate, tighter external borrowing policy and prepayment of public debt using a portion of windfall revenues, have led to a fall in the public debt‐to‐GDP ratio from over 60 percent in 2003 to around 35 percent in 2007, and the
declining trend is expected to continue in coming years. Inflation appears to remain subdued: consumer prices rose by an average of 0.9 percent in 2007 compared to 2.3 percent in 2006.17 But average consumer price inflation excluding seasonal products, goods subject to price controls, and changing excises, was close to 7 percent in 2007, an acceleration compared to the previous year. In the medium term inflation is expected to pick‐up as the economy will have to cope with continued monetary expansion coming from accumulation of foreign exchange reserves, strong growth of credit to the private sector, and record low interest rates.

The current account surplus rose to over 4 percent of GDP in 2007, thanks to high commodity prices. In the medium term it is expected to decline as import growth rises in line with per capita income, investment, and output. International reserves increased from US$1.4 billion at end‐2006 to US$2.1 billion at end‐2007, equivalent to about 4.5 months of imports of goods and services or about a year of non‐mineral project‐related imports. Reserves have stabilized in early 2008 as imports have been increasing. The kina has been fairly stable in recent years, appreciating against the US dollar in 2007 by around 2 percent. Given the expected continued strong commodity export inflows, some appreciation pressure on the kina will remain in the coming year or two.

Notwithstanding Papua New Guinea’s comfortable macro‐fiscal position, significant structural and policy challenges limit its long‐term growth potential. Most notable among these is the institutional and policy framework for public financial management. Critical areas for improvement are the integrity of budget processes, intergovernmental financial arrangements, efficiency of sectoral expenditure and service delivery, performance of the civil service and parastatals, and transparency and accountability in budget management. To stimulate private sector investment, particularly outside mining, the critical priority is improvement in the business climate, especially by opening more markets to competition,
reducing the regulatory and licensing burden, clarifying property rights (especially for land), and maintaining law and order.

B-Mobile uproar

THE Government and Opposition clashed yesterday over claims there were moves to sell state-owned mobile company, B Mobile. A series of questions from the Opposition, alleging a sale was in the works, was challenged and ruled out of order as the questions were being read in Parliament.

Member for Finschhafen Theo Zurenuoc claimed in questions directed to Communications Minister Patrick Tammur that several Government ministers and MPs travelled to Singapore, Malaysia and other overseas country to look into the possibilities of selling B-Mobile which is facing severe competition from Digicel. However, Finance Minister Patrick Pruaitch raised a point of order and called for the questions to be ruled out of order. Mr Pruaitch said the question was pre-empting government policy and told the Speaker Jeffery Nape to rule them out. Mr Nape ruled in favour of Mr Pruaitch and said the question was pre-empting government policy under the parliament standing orders. Deputy Opposition Leader Bart Philemon argued it should be raised but Mr Nape maintained his ruling.

But information showed to the Post-Courier outside of Parliament indicated that the Government was making moves to sell B-Mobile without the knowledge of Telikom PNG. The information showed that several Government bureaucrats were concerned with the move. Communications Minister Patrick Tammur and Minister for State Enterprises Arthur Somare at a joint news conference told reporters the Government was looking at options to transform Telikom but not to sell B-Mobile.

Government sources later told the Post-Courier that the transformation options include public and private partnership. Mr Tammur said: “The answer is no (to a sale), but the Government in its ICT policy decision directed my colleague minister, Minister for Public Enterprise, Arthur Somare to investigate options in rehabilitating and transforming Telikom PNG.” Mr Somare said the question was of national interest and the Speaker ruled it out of order.
He said the National Executive Council directive with regard to the ICT policy had clearly directed the ministry together with the Independent Public Business Corporation to look at all options in relation to transformation of Telikom for it to participate eventually in an open market environment before March 29 next year. Mr Somare said the text of the NEC decision itself was specific for the Government’s desire to transform Telikom. He said: “As to the question of whether B Mobile is for sale, that question is being answered through this process that both IPBC and the Ministry is looking at right now and we are looking at all the options for the transformations of Telikom to prepare it for full and open competition prior to the 29th of March 2009.”

Parliament was adjourned to 10am today.

 

—————————————————————–

Kissinger interested in GreenCom

ONE of the world’s most influential men, Dr Henry Kissinger, has shown interest in taking a piece of the mobile phones market in Papua New Guinea.
Dr Kissinger has already made a move on the “sleeper’’ in the mobiles debate, GreenCom. This emerged from remarks yesterday by GreenCom spokesman Ted Diro after the Government in Parliament denied the Telikom company, B Mobile, would be sold.

Outside Parliament, Mr Diro, a former defence force commander and former minister, said Dr Kissinger, who was the powerful Secretary of State for the US Government in the past, had vied for majority equity in the Indonesian company, GreenCom. GreenCom has the same status as Irish-owned Digicel, as the holder of a mobile phone licence in PNG, but has persistently held off entering the market.

Mr Diro said yesterday interests representing Dr Kissinger had made an offer to buy 55 per cent of GreenCom. Conditions were laid down by GreenCom for the offer to succeed but those conditions had not been met, so the offer lapsed, Mr Diro said. However Dr Kissinger had told him he had a better option to get into the communication market in PNG, Mr Diro said.

Observers said this could account for the remarks by government ministers earlier that Telikom’s future under rationalisation and rehabilitation could involve, among options, a partnership with private enterprise.