On this episode of Business PNG, we dissect why Internet costs in the country are so high.
Considerable improvements in PNG’s technological architecture have been made in recent years.
Deregulation has driven considerable improvements in competition, and the roll-out in 2008 of Digicel’s network has brought internet services to millions of previously unconnected Papua New Guinean citizens.
However, PNG’s internet infrastructure appears to be reaching its limits, and service outages are commonplace throughout the country. And although penetration has improved considerably in recent years, it remains amongst the lowest in the world.
According to a report released October, 2016, by the National Research Institute, the costs of reliable internet services to businesses remain substantial — moderate-to-high data usage packages cost many thousands of Kina and the requirement for businesses to adopt redundancy solutions to manage intermittency adds substantially to costs.
Lack of reliability also results in numerous indirect costs to retail and business customers.
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