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Thu, 9 Sep 2010
SUVA, Fiji ( FIJI SUN) ----- Expect a huge drop in internet charges soon in Fiji, Commerce Commission chairman Dr Mahendra Reddy said yesterday.
Dr Reddy said this was because Telecom Fiji Limited would be getting direct connectivity to the Southern Cross Cable before 30 October.
“That’s good news,” Dr Reddy said.
He said this would be the beginning of a new era of Information and Communication Technologies (ICT) development for the country.
“As with the direct connection, we expect the ensuing competition to bring down prices of band-width access by 50 per cent at the least,” he said.
“Given the importance of ICT in all spheres of Fiji’s economy, the Commission is determined to bring down the retail rates.”
Dr Reddy said the Commission notes Government’s vision to increase ICT penetration.
It is working closely with the telecommunications industry to ensure that prices come down so that the retail rates for accessing bandwidth is not a deterrent to ICT access.
“Following a rigorous study beginning in March, the Commerce Commission had intervened in the wholesale market to curb down monopoly providers from abusing its dominant positions by pegging wholesale bandwidth prices high,” he said.
Following the Commission’s ruling on Fiji International Telecommunications Limited (FINTEL) landing station, Dr Reddy said a wholesale price of bandwidth has started to decline starting last July.
“However, retail rates has declined as well, but not commensurate with the declining wholesale rate. The Commission is closely watching developments in the retail market and will take appropriate action later this year should the trend in the retail sector continue,” Dr Reddy said.
In the ruling made by the Commission on FINTEL’s Landing Station, it also declared that domestic network operators can directly source bandwidth from the Southern Cross Cable.
This will then provide competition with FINTEL thus paving the way for a market solution to bring down bandwidth prices.
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