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Digicel dials into the South Pacific

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  • Digicel dials into the South Pacific

    <TABLE cellSpacing=0 cellPadding=1 width="100%" border=0><TBODY><TR><TD><SPAN class=TopStory>Digicel dials into the South Pacific</SPAN>
    <SPAN class=Subheadline>Jamaica-based mobile firm investing US$400m in Fiji, Samoa, Papau New Guinea</SPAN></TD></TR><TR><TD>BY VERNON DAVIDSON Executive Editor - Publications
    Wednesday, September 13, 2006
    </TD></TR></TBODY></TABLE>
    <P class=StoryText align=justify>JAMAICA-BASED mobile firm Digicel is on an aggressive expansion drive in the South Pacific, having acquired licences in Fiji, Samoa and Papau New Guinea through a sister firm, Digicel Pacific Ltd, which is investing approximately US$400 million in that region.<TABLE cellSpacing=0 cellPadding=5 width=180 align=right border=0><TBODY><TR><TD></TD></TR><TR><TD><SPAN class=Description>Denis O'Brien </SPAN></TD></TR></TBODY></TABLE><P class=StoryText align=justify>"We're in, building towers in Samoa and we're hoping to launch in October there, we have a team on the ground," Digicel chairman Denis O'Brien told the Business Observer last Thursday. "In Fiji, we're assembling sites and we're moving on now to Papau New Guinea where we're going to drop in a roll-out team."<P class=StoryText align=justify>The major chunk of the investment - US$265 million - is being spent in Fiji under a 15-year development plan. But O'Brien is facing resistance there from a businessman who, after organising a boardroom coup, took control of Digicel Pacific Ltd's joint venture partner - Ba Provincial Holdings.<P class=StoryText align=justify>According to media reports out of Fiji, the businessman, Ratu Tevita Momoedonu, has written to Telecommunications Minister Isireli Leweniqila warning the government to revoke the provisional licence granted to Digicel which he (Ratu Tevita) has accused of splitting the indigenous people of Ba.<P class=StoryText align=justify>"We have voiced our concerns to you in that Digicel is single-handedly splitting the vanua [people] of Ba," Ratu Tevita wrote. "This will be devastating for the yasana [people] and we will not be able to contain any subsequent bloodshed."<TABLE cellSpacing=0 cellPadding=5 width=130 align=left border=0><TBODY><TR><TD></TD></TR><TR><TD><SPAN class=Description>Colm Delves </SPAN></TD></TR></TBODY></TABLE><P class=StoryText align=justify>The Business Observer was unable to ascertain the motive for Ratu Tevita's objection, and last week O'Brien shrugged off his comments as hyperbole. "A lot of that is just beating the drum a bit, little bit o' rhetoric," the Irish entrepreneur told the Business Observer. "It's just a different way of communicating. But we're not splitting anybody. We're just trying to build a mobile business in Fiji."<P class=StoryText align=justify>Added O'Brien: "It doesn't in any way stop us from going into the market. We'll be going regardless. The government is just at the moment tidying up the legislation to issue the licence. They told us we have a licence, so they are just putting the legislation before the Parliament."<P class=StoryText align=justify>O'Brien said that given the development, Digicel Pacific could either continue the deal with Ba Holdings or go into partnership with another Fijian company.
    Digicel Pacific's plan, he said, is to use either Fiji or Samoa as a hub for a seamless network in the South Pacific.<P class=StoryText align=justify>"We hope to get maybe 10 licences up and running there over the next couple of years - across all the islands," said O'Brien.
    The South Pacific, with approximately 20,000 islands, is regarded as a lucrative market for mobile telephony. But O'Brien insists that the region is being under-served by main prov
    "Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has."
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