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SamoaTel CEO Challenged to Respond!

Citizens’ Coalition for Accountability in Telecommunications in Samoa (CCATS) is a non-partisan group of Samoans whose goal is to provide public awareness on telecommunication issues that adversely affect the public.
See their website: www.CCATSamoa.info for more details and contact information.

About four weeks ago we met with the CEO of SamoaTel and presented to him a signature petition from residents of Aleisa and vicinity asking for extension of landline telephone services to this area. In the petition letter we discussed the feasibility and viability of such extension, reminded the CEO, of SamoaTel’s Community Service and a number of other obligations. (1) We also requested a written response from SamoaTel in this regard. To date, we have not received a written reply. This petition seems to have, once again, been ignored by SamoaTel as it has been for the past nine years! We have come to believe that Mr. Johnstone, who has a precedent with us for not responding to any correspondence in writing, is also refraining from commenting publicly on any of our articles (2) published in Samoa Observer – this, despite his verbal indication that he does not agree with our statements, which, we, on the other hand, strongly hold as factual and wholly verifiable.

Loan

Amongst other things (discussed further below) one verbal, emphatic response from Mr. Johnstone in this meeting stands out, on which we expect a written and public response – namely his categorical denial of existence of a World Bank loan! Why is that? There are numerous references to the World Bank loan by various sources (3) including government’s own contribution of $350,000 and $340,000 tala in the 2004/2005 and 2006/2007 budget respectively, as counterpart cost to the Telecom and Postal Sector Reform Project assisted by the World Bank (4). In fact, the Telecommunications Act 2005 (5) itself was propelled by the World Bank reform project (6).

Why is it, we ask, that SamoaTel denies such incontrovertible facts including its own clear-cut community service obligation? SamoaTel is a public trading body, like Samoa Water Authority, NPF, EPC, Samoa Shipping Corporation and others. As such it is bound by the provisions of Public Bodies (Performance and Accountability) Act of 2001 and Regulations of 2002 (7) requiring SamoaTel to operate as a successful business and to this end meet any community service obligations as set forth in the Act, and furthermore, be an organisation that exhibits a sense of social responsibility by having regard to the interests of the community in which it operates.

Statement

Its own statement of corporate intent should spell out its mission and vision in line with the above. We would not like to presume, but cannot find such a statement (which should be a public document) anywhere. We therefore ask here that it be made available for public viewing – perhaps on SamoaTel’s website? (8) Perhaps the absence of such transparency – as well as of an effective regulator to date - has allowed this public service provider to get away with ignoring its obligations and core business… easy to do when no-one knows what they are!

Rehashing the Issues…

This is Samoa, a developing country with many basic needs – most of our schools are without libraries, telephone lines and internet access. Most of rural area residents (75% of Samoa) dream of a basic landline telephone line at equitable rates as in Apia and the possibility of connecting to the internet so that we can be better informed citizens and to be able to contribute more effectively to our country. Our social and economic development depends on fair, equitable and affordable telecommunications services throughout the country. We do not need to be deceived about the cost of delivering services, when in fact, in most cases the small investment is financially viable and where it is not, SamoaTel has a community service obligation and is eligible for funding – upon request of course. We don’t like to be dismissed by comments by SamoaTel, as we have been told on some occasions, that extension of landline telephone services in rural areas are not economical, because presumably a) there’s not enough of us, b) we most likely won’t be able to afford it considering that even residents in Apia default on their bills c) internet access not of importance for rural areas as most of us in villages are technologically aloof - almost arguing along the line that no schools are needed in a certain area because the people can’t read and write anyway! SamoaTel is wrong on all its presumptions: where do you think we go after work when all the hustle and bustle of CBD of Apia subsides and becomes almost like a ghost town in the evening? We go home to our villages, we the laborers, lawyers, cahiers, doctors, public servants, business owners, etc. Let’s face it - we are the most likely revenue generators for SamoaTel and we have the numbers to prove it. So, what’s the problem? Where is the hard evidence in terms of verifiable studies taking in account, not only cost-benefit, but also social-economic development factors?

GSM Mobile as a Substitute?

As much as we need competition and hopefully a fair bit of reduction in mobile rates we do not want mobile phones (no matter how advanced the technology – EGPRS or not) as a cheap solution for SamoaTel and other so-called competitors at high cost to us! Mobile rates are, and will remain mobile rates, and so, expensive mobile phones, at high call rates are beyond the reach of most people for routine use. To boot, online (internet) cost becomes unbearable for ordinary citizens and businesses, especially in light of the need to acquire an additional expensive GPRS modem or other type of interface.
Does the much touted GSM network serve the people of Samoa, especially in the rural areas, fairly and equitably and satisfy their basic telecommunication needs? The answer is a definite NO.

We believe that this is a quick and relatively inexpensive, revenue-generating scheme for SamoaTel and other providers with dire long-term impact on the economy and the society at large. Especially if SamoaTel continues the trend of intentionally stalling landline phone expansion while ignoring the growing number of people on the waiting list and so artificially keeping the demand for basic voice and internet services high (a diversion strategy to increase GSM mobile users) – short term at least – but long enough to get through the South Pacific Games (guess who is the major sponsor?) and get the return on investment (3 million?) fairly quickly. After that – who cares!

If no one else – we do! SamoaTel needs to live up to its responsibility to provide basic (meaning landline or other means equitable in price and capability) telephone services to rural areas and the executive management of SamoaTel must be held accountable for their decisions in this regard.

Landline

What has SamoaTel done in the recent years about the rural areas landline network expansion? Nothing worth mentioning! Instead, millions of tala had been wasted on installing, upgrading and sustaining a defunct GSM mobile service, aka HomeZone which is costing both SamoaTel and the end-user dearly. A few minor landline expansion projects (e.g. in Safata ) have brought phone lines only to a few – these have been mostly photo opportunities without much significance in terms of the overall rural area basic phone service needs. The new GSM network is yet another quick revenue generator, time-buying patchwork, public relations and a marketing opportunity for SamoaTel. But worse of all, it undermines the social-economic development in Samoa especially in the rural areas. If SamoaTel believes to the contrary and can prove its position factually, then by all means, bring it on – we are eager to hear what SamoaTel has to say!

Strategies at Work…

Is creating confusion, covering up facts, and be self-serving perhaps an accepted way of doing things in the telecommunications scene? Telecom NZ chief executive Theresa Gattung, who recently has been under intense pressure from the public and the government, blithely made the following remark:
“ Think about pricing. What has every telco in the world done in the past? It’s used confusion as its chief marketing tool, and that’s fine.” (9)

It is not fine for Samoa! Can we, as ordinary people, do anything in response? Absolutely! Please voice your concerns publicly, whether you agree with us or not – the process of a healthy dialogue in itself is a step forward.

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Notes and References:

1) World Bank's Telecommunications and Postal Sector Reform Project - embedded poverty reduction module, Regional ICT commitments, Strategy for Development of Samoa, Millennium Development Goals, etc.

2) To receive electronic copies of our past articles send a blank email to archives@CCATSamoa.info for an automated response containing the attachments.

3) Improving telecommunications services - Telecommunications and Postal Sector
Reform Project (US$4.48 million IDA Credit; approved 04/29/2004; closing date
12/31/2006). .. Access to reliable and reasonably priced telecommunications is a key
component of the objective of fueling private sector growth... Expected impacts:?Access to communications
services will be extended and enhanced, reduced cost of communications services. Source: The World Bank
Also, search The World Bank website for: “Samoa - Telecommunications and Postal Sector Reform Project, Report No.: 24794”

4) See Budget Address, By Hon Misa Telefoni, Minister of Finance on May 31, 2004 and by Hon. Niko Lee Hang, Minister of Finance on June 6, 2006: http://www.mof.gov.ws/publish/budgetspeech.shtml

5) Search the Government website: http://www.parliament.gov.ws for “Telecommunication Act 2005”

6) See speech by Hon. Palusalue Fa’apo II , former Minister of MCIT at the World Summit on the Information Society, November 2005 in Tunis: ITU: http://www.itu.int/wsis/tunis/statements/docs/g-samoa/1.htm

7) See “List of Acts and Ordinances” Government website: http://www.parliament.gov.ws

8) Amazing to see that SamoaTel website has not been updated for years - not even the rates!

9) See New Zealand Herald Saturday May 13, 2006 – article: Ringing the Changes