Solomon Telekom is taking its fight to the court over a government decision to open up the telecom market to allow for more competiton in the country.

Solomon Telekom, which is the sole communication company in the Solomon Islands, holds a 15-year exclusive licence granted by the Sir Allan Kemakeza Government in 2003.

However, the current government under Mannesseh Sogavare wants that revoked. It plans to bring in more competitiors, one of which is Digicel, which recently started operation in Samoa.

The Solomon Islands Government has already granted an experimental licence to Digicel.

Solomon Telekom general manager Martyn Robinson confirmed the challenge is now before the court.

"We are taking legal action to defend our licences against the regulator (telecommunications authority)," Robinson said.

The Attorney-General's (AG) Chambers which will be defending the government's intended action, confirmed receiving the writ of notice.

A spokesman for AG's Office said they are ready to contest and defend the authority against the challenge.

He confirmed that Telekom is challenging the government's intention through the telecommunications regulator to amend the exclusive licence.

Aside from that, he said, Telekom would also be contesting the government's decision to grant an experimental licence to Digicel to carry out experiments.

Though it challenges the government in court, Telekom says it's ready to review its licence.

"We have made a private and public commitment as and when it (government) wants to review the exclusive licence in accordance with government's framework policy," Robinson said.

"We're not frightened of competition," he said.

Chairman of the Solomon Islands National Provident Fund, which is the major shareholder in Telekom, John Beverley, endorsed Robinson's statement.

"Solomon Telekom encourages competition and is not afraid of competition," Beverley said.

Robinson and senior executives of the company welcome the review but say it must be done on a level playing field.

Currently Telekom funds its operations in the rural areas with Honiara users footing most of the bills.

Robinson said if competition comes in, there is a likelihood the rural areas would be the most affected.

But he declined to comment whether it will withdraw from the rural areas saying it's a matter for the board to consider.

Meanwhile, despite encouraging competition, Beverley said NPF would sell its shares if Telekom becomes unprofitable.

"If competition causes Solomon Telekom to become an unprofitable business, there is no doubt in the world that the National Provident Fund will sell its shares.

"If Telekom becomes or heads towards failure, the National Provident Fund will sell its shares and go into other business ventures," Beverley said.