What’s the secret of Digicel’s success in the Carribean and now the Pacific?
This Jamaica-headquartered and Irish-owned GSM mobile telephone service provider will notch another Pacific market this month when it launches its services in Fiji.
It will take the number of countries in the Pacific that it operates in to five. Add Fiji’s roughly 800,000 population to the already 6.5 million that the four other markets constitute and Digicel now has access to over 7 million people in the Pacific.
There is no doubt more to come as the company works towards establishing its presence in every island country in the Pacific.
In an interview with ISLANDS BUSINESS, Vanessa Slowey, CEO of Digicel Pacific, said the company’s core philosophy is the importance of its customers and giving back to the community.
She linked this attribute to the belief of the company’s owner, Irish entrepreneur Denis O’Brien, whom she described as “a passionate humanitarian”, a cause he inherited from his mother.
With its belief that “communication is now a basic human right and therefore must be made accessible and affordable to everyone regardless of status, race, colour or creed,” it is of little wonder that Digicel quickly works its way into the hearts and minds of local consumers.
Digicel rapidly expanded in the Caribbean and is doing the same in the Pacific. What is the secret of Digicel’s success?
“I think at the centre of everything we do comes our customer. We are a very customer-centric organisation and that’s the key at what we do at Digicel. What makes Digicel different from every other operator is that we believe in access in everything that we do. So we put in a state-of-the-art network and make the cost of mobile calls affordable for every person, not just the executives or the higher income group but for everybody, including the man on the street. And by putting our customers at the centre of the organsiation, by putting people at the centre of the organisation, I think that speaks for itself because everything we do is based around our customers—what do they want and how can we give that to them? So we listen to our customers and I think that really shows in our success. Digicel customers are very happy people and we’ll continue to do that—put them at the centre. And then there are the other things that we do as a company in terms of our other ethics and standards; re-investing in our communities, in sports and in things that people can be proud of.”
How heavily involved in local communities are you and what’s the idea behind maintaining this image?
“As a core value, Digicel believes in giving back to the community from which we draw our strength and this ethos comes from our Chairman Denis O’Brien right down through the company. Each of our 23 operations in the Caribbean is actively involved in a number of community initiatives as well as making significant commitments to our sponsorship partners such as the West Indies Cricket Board, the El Salvador and Haiti Football Federation and Special Olympics Caribbean amongst many more.
“In the Pacific, we sponsor the Digicel Fiji 7s, Digicel Cup, The Digicel Papua New Guinea Puk Puks, the Digicel Tonga 15s and 7s and the Digicel Vanuatu 15s and 7s, Digicel Vanuatu Cricket Team.
"In Samoa, we have invested in a mobile Diabetic unit to facilitate early diagnosis and improve access to treatment in rural areas. The diabetic unit is equipped with a text and phone hotline for enquiries. We also support the Children with Special Needs Organisation and the Samoa Victim Support Group and the Paralympics team in Fiji, Vanuatu and Papua New Guinea. The team in Vanuatu is working closely with the Vanuatu Society for the Disabled to build them a community centre. In Papua New Guinea we work with Business against HIV and AIDS (BAHA), the Heart Foundation and with Families against Violence. Most recently, Digicel has been awarded with a human rights award in Papua New Guinea.
"Another hugely worthwhile community initiative that PNG has developed is the ‘Susu Mamas Toll’ free line, to give free information about pregnancy and infant feeding to all families.
"PNG developed the ‘Street Vendor Programme’ a scheme to train and develop young unemployed youths to make a living by selling pre-paid cards which was supported by the Digicel community development initiative. A year later, 30 street vendors are operating profitable business and another 30 vendors are planned for training this year. We have also always been on hand to respond to our communities in times of real need. In 2004 Digicel established the Digicel Foundation is a non-profit organisation that distributes and utilises funds on a charitable basis from the sole purpose of building communities and investing in community spirit. The Digicel foundation is unique as the board comprises of Digicel staff members. The foundation to date has committed in excess of US$7 million to sustainable community development projects across the Caribbean as well as relief programs following hurricane Ivan in September 2004. We are in the process of launching the Digicel Foundation in Papua New Guinea in September. The board has already identified two launch projects—1) To construct a primary and elementary school and, 2) Set up a Mobile Learning Centre. We anticipate that in the next two years we will also launch the Digicel Foundation in Fiji.
"In January 2006 Digicel contributed to two separate payments of US$100,000 to address flood relief aid in Haiti and Guyana. In 2007, we launched the Digicel Haiti Foundation with the initial commitment of building 20 primary schools across the country.”
What is the status of Digicel’s operation in the Pacific?
“To-date, Digicel has launched GSM services in Samoa in November 2006 and in Papua New Guinea in July 2007, Tonga in May 2008 and Vanuatu in June 2008. Launch in Fiji is imminent. Digicel aims to provide nearly 100% network coverage throughout its countries of operation, bringing mobile service to local and rural residents that never before had a viable wireless option. Digicel is always looking for new opportunities to give people the right to affordable communications. The Pacific region, similar to the Caribbean region 7 years is characterised by monopolistic telecommunications providers who charge high prices and citizens of Pacific countries have had to accept this poor level of service for far too long. We believe that every citizen of the Pacific has a basic right to affordable telecommunications services.”
Does Digicel plan to be present in every country in the Pacific?
“Well, as I said in November 2006, our plan is to roll out a pan-Pacific network. So we are currently working with a number of governments who are keen for us to come into their country. Our aim is to continue the growth of mobile networks in the countries where we currently operate (Samoa, PNG, Tonga and Vanuatu) and to increase mobile penetration as quickly as possible, focusing focusing on customer acquisition and customer value. In most Pacific countries, mobile penetration is very low and the rates being charged by incumbents are high, therefore there is a need for a new innovative mobile operator to introduce affordable telecommunications services supported by a state of the art GSM mobile network at affordable prices. We are interested in spreading our footprint right across the Pacific and are looking at a number of opportunities. Many Pacific island countries are still characterised by telecom monopolies and high prices, our aim is to change that by providing choice and access to affordable telecommunications services for all Pacific Islanders. In the long term, we aim to provide a seamless pan-Pacific network, and become the leading mobile operator in the Pacific.”
There have been some hues and cries over Digicel’s perceived favourable position especially with its links to the International Finance Corporation in terms of financing when the World Bank, is assisting Pacific governments to liberate their telecom markets. Recently, the European Union was reported to have applied diplomatic pressure on Papua New Guinea to open up the international gateway access to benefit Digicel. These are sensitive issues for telecoms in the Pacific. Digicel’s views on these concerns?
“Digicel’s primary concern is the consumer, and that is why Digicel wants to see full open competition in the mobile telecommunications sectors across the Pacific. Open competition will enable Digicel - and other players in the market - bring better quality and more affordable mobile services, to more people, across areas that have not benefited from these services to date. Digicel believes in a level playing field for all competitors in the mobile telecommunications market, that is how Digicel and others can bring the best possible service delivery to consumers, and that is what Digicel is all about. The only hues and cries Digicel has heard are those of incumbent monopolies who are afraid that Digicel’s consumer-friendly, affordable and high-quality services will mean that customers flock to Digicel. I think it is important that the media understands this, and far from having a favourable position, Digicel often is at a disadvantage against incumbents, or former monopolies. And when competition is blocked and the market is not a level playing field, it is the customer who suffers, as the services that Digicel can provide are not at the optimum possible, under a full, open, competitive market. Digicel does not comment on the policies or mandates of other organisations. However, the EU did not approach the PNG government to benefit Digicel. According to the newspaper reports I have read the EU merely raised issues surrounding the PNG governments’ obligations under various international trade agreements to which PNG subscribes. In relation to the World Bank, we work closely with them across the region. Their remit is to provide funding for the development of infrastructure and telecommunications services in developing countries. We are a perfect example of a company who endeavors to break monopolies and improve the lives of Pacific Islanders by bringing affordable telecommunications services to them, so it makes perfect sense for us to work together. The World Bank also lends money to the incumbents."
What are the benefits Digicel can bring to the region?
“Digicel brings competitive rates, nearly 100% coverage and superior 24/7 customer care, a wide variety of innovative products and services, and state-of-the-art affordable handsets. Digicel’s presence in a market vastly—increases mobile penetration, in a very short time. We have shown this already through our operations in Samoa where there has been an explosion in the number of mobiles in use—up by 150 percent in the past 12 months, with calls billed by the second and starting at as little as 25 sene (12c) a minute. At the same time, the price of calls has decreased by up to 40% in PNG for domestic calls and up to 60% on international calls, coverage has increased and a wider range of handsets have become available at much more affordable prices. Mobile penetration in PNG and Samoa has quadrupled since Digicel launched services. The same has occurred in Vanuatu; Digicel brought 85% mobile coverage giving Ni-Vanuatuans access to affordable mobile communications for the first time. Digicel Samoa and Digicel Vanuatu have over 70% market share since launch, whilst Digicel PNG has approx 65% market share. It is important to note that Digicel’s presence in the Caribbean markets have led to a decrease of as much as 40% in exorbitant rates that were largely driven by incumbents and their monopoly position. Digicel’s entry into a market has resulted in significant reductions in handset prices, wider range of handsets being offered, better coverage and quality, 24/7 customer care, per second billing, a full suite of products and continuous reinvestment of our networks. All this is supported by building infrastructure to provide nearly 100 percent of network coverage throughout its countries of operation, bringing mobile service to local and rural residents that never before had a viable wireless option with the incumbent providers."