USP drama; Telekom troubles; Stupidity in the air


USP drama: Whatever is going on at the University of the South Pacific is anyone’s guess. Things got so bad in recent times that in late March, students threatened to stage a protest if the registrar did not resign.  As quickly as the news of the students’ frustration came out in the local press, it went out again. The protest march did not eventuate. WHISPERS later learnt that this was because the USP management later levelled heavy disciplinary actions against student association president, Tongan student Ilifeleti Tovo, for talking to the local press. He was again disciplined for attending a USP Senate meeting late last month and now has limited access to campus and campus facilities. Angry sentiments of USP students have been simmering for a while now after USP management, led by its registrar Walter Fraser, put in place cost cutting measures that they believe have begun to affect their studies. Tutors have been downgraded, programmes and courses have been cancelled, student privileges have been reduced, mandatory salary increases for lecturers have not been honoured and more changes in and around the campus have been carried out as management tries to control costs in the face of a budget crisis caused by an unexpected lower grant allocation from the Fiji government. But the very people executing these changes -- senior management led by Fraser -- are said to be receiving over F$250,000 each excluding perks and allowances. And USP cannot review or terminate these contracts because it is legally bound to honour them.

Still on USP: Has there been any word on who will be the next Vice-Chancellor? The position has been vacant since Anthony Tarr prematurely vacated the position in 2006. If what WHISPERS has been hearing is correct, three have been shortlisted.

Telekom troubles: Privatised Solomon Islands monopoly Our Telekom is finding that times are changing. The government is treating it like everyone else. When the government insisted Telekom pays taxes on equipment it was importing, Telekom criticised the government in a full page ad in the Solomon Star. It said Our Telekom would stop rural development because the government was not giving it exemptions to help this. Four days later, there was another full page ad in the paper. Telekom apologised to the government.

Out of tune: Those Solomon Telekom types are expected to soon face more government attention. This time over their expanding use of TV frequencies. Seems Our TelekomŃa partnership between Solomon Islands National Provident Fund and Britain’s Cable and WirelessŃhas forgotten something. It is now privatised and no longer part of the government regulatory machinery. It has to apply for frequencies properly just like any other company.

Stupidity in the air: Palau’s President Tommy Remengesau is the latest island leader to face an intrusive security search, this time by staff of American airline Continental. Don’t those involved ever learn? Remember the flap and fallout over Australian airport security officers and the needless search of Papua New Guinea Prime Minister Sir Michael Somare? Remengesau  suggested that while he understands aviation security concerns, there is something lacking in all of this: common sense. Then he switched airlines.

Media watch: Because, readers, we believe in putting the same spotlight on the media as we do on everyone else, we report the following without comment. There’s an almighty uproar going on over the leadership of the regional Pacific Islands News Association (PINA). Three executive board members elected in Honiara last year have changed their roles. Two plan to stand in this year’s Vanuatu’s elections. Prominent PINA members say those involved should follow the constitution and resign. But board members and the Suva-based PINA Secretariat resisted. They said this doesn’t have to happen. One leading daily newspaper has already quit PINA membership in protest over the constitution not being followed. Another has said it won’t pay its membership until the board members are replaced and the constitution followed.

B-Mobile for a 50-50 partnership? These are indeed interesting times in Papua New Guinea’s telecommunication markets. On its way to press, WHISPERS got information from a reliable source in Papua New Guinea that the government was looking at a “possible sale of fifty percent of PNG Telikom’s B Mobile GSM network” to Hong-Kong based GEMS. “The main aim (of the sale) would be to import capital and technology to increase the competitiveness of B Mobile,” the source said. While this proposed sale has been widely reported in PNG, it was unclear just how much the government was willing to part with and it faces domestic political pressure to reveal details of its intentions over the state-owned mobile company. But WHISPERS had long suspected that a 50-50% or a 49-51% partnership would have to be the way to go as no strategic investor would want to come in with a weak hand in the business. PNG Telikom’s stressed network assets and financial constraints for a major network overhaul are widely known and with the government not in a mood to play a long catch-me-if-you-can game with newcomer Digicel PNG, any potential buyer in B Mobile is in a strong bargaining position. With GEMS’ (www.gems.com.hk) investment criteria dictating that it “will not consider any investment where we cannot identify a minimum internal Rate of Return of 25% in US dollar terms”, one would least expect it to be a passive investor. But there are those who think that PNG Telikom’s networks, including the mobile network that B Mobile operates, are not as bad as some make it out to be. The company may not be backed by big global names in financing like rival Digicel but it does have the guts to play ball.  Pro-Telikom informants told WHISPERS that in the last 18 months, Telikom PNG has invested over 300 million on upgrading networks, including its international gateway facilities. Spurred by what they described as “healthy competition and a strong expression of brand loyalty” from PNG consumers, B Mobile has embarked on internal reforms, coverage expansion and is estimated to be making over two million calls on Fridays, the busiest day. They believe the state-owned player has actually benefitted from competition in that more calls are being made on its network rather than getting flogged by Digicel, Telikom. While that may be the case, WHISPERS still suspects PNG Telikom and the government do care very much about the force of competition that is already in the market. Not only has Digicel given PNG Telikom a run for its money, it went further to take advantage of loopholes in the country’s ICT laws to build its own international gatewayŃand forced the government’s hand in the recent approval to amend the legislation to streamline the gateway issue. Obviously, having awaken quite late in the game, the PNG government and its telecommunication interests are now being seen by some to be “frantically groping for solutions to counter competition”. With GEMS or whoever the successful strategic investor would be, the government’s stated intention is to “import capital and technology to increase the competitiveness of B Mobile”. For consumers who have long called for competition, this is something that should have been done a long time ago.

Govt programmes canned: What’s happening to the Fiji Ministry of Information’s TV programmes? The programmes -- in English, Hindi and Fijian -- aired on Fiji TV have now been taken off air because Fiji TV is now demanding that they pay for airtime. Apparently, Fiji TV had written to the ministry sometime late last year advising them of the new arrangement. But someone in government was sleeping on job. By the time, they realised it, it was into the new year with the new arrangement and no provision for the airing of the programmes. In the meantime, the unit that produces these programmes is concentrating on producing documentaries. WHISPERS has learnt that another local television company is willing to air the government programmes free of charge. This local TV station is expected to be going to air mid this year.

It’s official: The Marcus Stephen-led government in Nauru has been returned to power and is expected to rule with a majority of at least 10 members in the 18-seat parliament. The result would end the two-month deadlock of parliament that has severely hampered the passing of essential budgetary bills and held up a number of projects the government is anxious to progress. The opposition’s anointed leader and controversial former president Rene Harris lost his seat along with fellow opposition members, Cyril Buraman and Fabian Ribauw.
Cost of rule change: Samoa’s Tuilaepa Sailele Malielegaoi may have won the fight to switch to right hand rule, but does he realise how much it will cost to switch from left hand to right hand drive? Figures, WHISPERS has been given, is exorbitantŃa cool T$1.9 billion. Word from Apia is that the switch will not affect its bid to become a WTO member despite advice given by the Ministry of Foreign Affairs and Trade to the Works, Transport and Environment parliamentary committee. Tuilaepa said the move would  not affect the bid as Samoa’s application to join the WTO was made 11 years ago. Tuila’epa told Samoa Observer that if it takes another eleven years, it does not matter.

Hou for greener pastures? Is Solomon Islands Central Bank governor Rick Hou heading for greener pastures? If what the Solomon Star is saying is correct, then ISLANDS BUSINESS’ Person of the Year is being eyed by the World Bank. “Yes, the World Bank as well as other organisations have offered me jobs. But I am still thinking about those offers,” Hou told the newspaper. Hou’s current contract expires in August.

Airline competition hotting up: Well, it appears Solomon Islands’ new airline SkyAirWorld is upping the competition in Honiara. Apart from providing services on the lucrative Brisbane/Honiara/Brisbane route, it is also talking of investing in local tourism development by building a 50-room hotel in partnership with a local community. Where will this be? Local tourism sources say the hotel could be built in either Gizo or Munda.

MSG meets: The much-talked about Melanesian Spearhead Group (MSG) meeting will now be held on May 16 to May 30 at Port Vila. MSG subcommittees will meet first before the leaders pow wow on May 28-29. Sources close to the meeting said the leaders are expected to discuss amongst other things issues such as trade amongst themselves, kava and EPA interim agreement which they hope to sign a full agreement by the end of the year, and a report on the Fiji situation. Also on the agenda is the announcement of who will be the first MSG secretariat’s director-generalŃa closely guarded secret. Whoever gets the jobŃWHISPERS has been told that three have been shortlistedŃwill be based in Port Vila, capital of Vanuatu.