LEADER of Opposition Hon Matthew Wale has called for urgent reforms in the telecommunications sector describing the competition policy as ‘very weak’.
Speaking during the Public Accounts Committee (PAC) hearing recently, Hon Wale said urgent changes need to be done within the telecommunications sector.
Hon Wale made these comments when the Ministry of Communications and Aviation appeared before the PAC.
He said the current policy has placed Telekom in a very dominant position and they have been abusing it to the max at the expense of ordinary citizens.
“We acknowledge Telekom’s contributions to NPF. But it is equally important also that this does not come at the expense of its customers and the general public,” Hon Wale said.
The Opposition Leader said the competition policy must be reviewed and Telekom has to reduce its data charges.
He said it’s not only a problem for consumers but also the economy as a whole.
“Communication is basic to economic development. They can’t continue to stifle economic development,” Hon Wale said.
The Opposition Leader also questioned whether there are provisions in the Act that allows the minister to intervene and give directions to the regulator.
Permanent Secretary Alwyn Danitofea responded stating that the ministry can issue instructions based on state policy with concurrence with the regulator.
Hon Wale said this must be changed, as the regulator is not the Board.
The Opposition Leader said with the unjustifiable data increases by Telekom it is time the ministry brings in a third operator.
PS Danitofea said discussions are already underway with the regulator for a third operator.
“We have spoken to the regulator on the matter of dominance in the industry. We are waiting on TCSI to come up with a landscape assessment to see if it’s fitting to have a third operator on board,” Mr Danitofea told the hearing.
He said the decision on which operator is something to decide on when all assessment reports are satisfied with TCSI.
However, Hon Wale said there is no need for an assessment because it is evident that the current Telekom charges are alarming.
Chairman of PAC Hon Gordon Darcy Lilo urged the ministry to prioritize the reforms.
He said there should be a provision in the regulations that requires the minister or commissioner to step in to advice the regulator when there are unjustifiable increases by an operator that is affecting consumers.
“ It was in the initial discussions on the drawing board then whether to have a single commissioner or a board. So there is room for the ministry to move quickly with the review to make the necessary changes,” Hon Lilo said.
He said the law provides for the regulator to step in when the operator is over charging its customers.
“I must admit the current Telekom data charges are ripping off ordinary people in this country,” the PAC chairman told the hearing.