Undersea fibre optic cables are set to revolutionise internet connectivity in Papua New Guinea and the responsibility for that infrastructure locally falls to PNG DataCo. Managing Director Paul Komboi updates Business Advantage PNG on the Kumul Submarine Cable Network, and outlines the state-owned telco’s long-term strategy.

PNG DataCo’s Paul Komboi. Credit: BAI

Business Advantage PNG (BAPNG): What is the relationship between PNG DataCo and Kumul Telikom Holdings?

Paul Komboi (PK): PNG DataCo was initially listed as a wholesale service provider by the government. We are still carrying on that role within the Kumul Telikom Holdings Group. At DataCo, we are concentrated specifically on wholesale infrastructure assets. So, mainly we are looking at fibre infrastructure: terrestrial, submarine and satellite infrastructure.

BAPNG: So you are not a customer-facing organisation?

PK: Correct. We sell to retailers who have a licences with NICTA. That includes Telikom itself, Bmobile, which is part of our group, and Datec PNG, which is also part of our group. Outside of that it would be Digicel, PowerNet Global, Daltron and others.

‘Since we took over the operations and management of the wholesalers within Telikom, we have reduced the wholesale price to retailers by 20 per cent already.’

We also extend our services to enterprise companies like ExxonMobil, Oil Search and BSP: they also have licences with NICTA. We are not only building the cables, we are also installing the data centres to create the ability for cloud services and the internet of things (IoT).

BAPNG: What is happening with the Coral Sea Cable System?

PK: We are actively participating in that project. Cable manufacturing has already commenced and we are about to complete the final tests now. Loading will take place in April of the cable and the full system, and we expect the installation to start in June, or July. It is moving smoothly.

‘When the Kumul Submarine Cable comes into operation we will also reduce prices. And we will reduce prices when the Coral Sea Cable comes on board.’

Story continues after advertisment...

By December, or at the very latest January 2020, we expect the cable to be completed and the full network system operational.

BAPNG: What do you expect to happen with pricing?

Credit: PNG DataCo

PK: We think the more volume you have, the greater will be the ability to reduce pricing. It is a volume-driven business.

Since we took over the operations and management of the wholesalers within Telikom, we have reduced the wholesale price to retailers by 20 per cent already.

When the Kumul Submarine Cable comes into operation we will also reduce prices. And we will reduce prices when the Coral Sea Cable comes on board.

I think the wholesale price can continue to fall by another 50 per cent from what it is now. The government created DataCo to have an impact on the pricing and we are seeing that now. But we don’t have control over what the retailers do.

BAPNG: Are you aiming to connect all the country?

PK: The Kumul submarine cable network is connecting 14 coastal provinces of PNG. In November last year, we completed System Two, which is basically connecting Port Moresby all the way to Madang, via Alotau, Popondetta and Lae. That is in operation now; we have live traffic running on it—mainly international traffic and the traffic going domestically up into the Highlands region.

‘That is the beauty of the Kumul submarine cable system. It … is more than enough for PNG for the next 50 to 60 years, in terms of the demand.’

BAPNG: How are you going to get the connections out of the city centres and to businesses and ordinary people?

PK: We have a partnership with National Broadcasting Corporation (NBC), and also a very good partnership with PPL (PNG Power). The NBC is where our cable landing station is, which is next to stations for Digicel, Bmobile and Telikom. They can access it and redistribute the capacity.

Kumul Submarine Cable Network landing in Kila Kila, Port Moresby. Credit PNG DataCo

We need to carry the capacity around at least in the areas of the country that have power, and we can co-locate cables with the power network: it can run on PNG Power transmission poles and towers. PNG Power is critical—wherever there is power, there can also be internet.

We are investing for the future; we didn’t sign up for yesterday, or even today. That is the beauty of the Kumul Submarine Cable System. It has the capacity to deliver to all the provinces and is more than enough for PNG for the next 50 to 60 years in terms of the demand.

The retail end of the market is very dynamic, that will continue to change. But the foundations that we are building will remain future-proof in terms of technology whether it is 4G, 5G, 6G or 7G, etc.