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.

We Poor Samoans!

Samoa is classified as a lower middle income country, with an average income per person of less than $6,000 tala per year. And yet, in year 2000 (our latest available data) Samoans contributed to the wealth of SamoaTel with over 9 million minutes of international outgoing traffic[1] at one of the highest overseas call rates in the world e.g. $4.09 tala per minute to USA. You do the maths!. These high outbound national and international calling prices have essentially remained unchanged since 1989 despite the rapid downward trend in the international scene[2] and with net settlement payments of about 40% [3] it also ranks well above the world average when it comes to incoming international traffic rates and revenues. Due to its monopoly standing SamoaTel enjoys one of the highest profit rates in the world (for a telecommunications provider). This despite extravagant expenditure on many fronts (unnecessary and inconsequential marketing campaigns, expensive overseas executives, etc.) With gross revenues reported in excess of 32 million tala, net profit of nearly 10 million tala and total assets of 78 million tala of which 28 million tala is cash at hand (fiscal year 2001) from its telecommunications and postal monopoly presence in Samoa, SamoaTel provides little to its customers who pay dearly for its mediocre to unacceptable service, has a disregard for community needs, despite its community service obligation, and is a major stumbling block for realising ICTs in rural areas. Don't take our word for it: according to a report [4] published in 2002 by the World Bank, major sector issues are:

“ Limited coverage and access to the telecommunication network. Fixed-mainline telephone penetration is 6.5 per 100 inhabitants, while on average penetration for other countries in the same income class as Samoa is 12 percent, which would be equivalent to an additional 11,000 fixed-line subscribers. Cellular penetration is around 1.7 percent, while penetration for other countries of the same income class is over 5 percent. The existence of a waiting list for fixed-line and cellular services (estimated to be in excess of 1,500 customers) confirms that there is room for growth. There is an issue of access to communications services. For example, 75 percent of fixed lines are in Apia, the capital city, where only 25 percent the total population lives. Fixed-line backbone infrastructure needs upgrading and expansion. This constrains the coverage of both fixed line and cellular services, especially in Savaii, where most of the island is without coverage. In addition to limited coverage Samoa's network also suffers from poor quality of service, with 1.5 faults per line, per year (while an efficient network in a developing country should have 0.1 faults per line, per year). The network is congested and call completion rates are low. Both local access and long distance infrastructure need to be upgraded, and are a constraint for service providers in the market.
High communications costs hinder the competitiveness of the Samoan economy. The cost of international voice calls is high and does not reflect the real cost of provision of service. For example, a three-minute call from Samoa to the United States costs $4.20, while a similar call from Australia to the United States costs $0.42. This contributes to Samoa's isolation and is a major obstacle to firms operating in the export-oriented sectors. Leased lines are expensive at the domestic and international levels. The retail price of a 64 kbps line is estimated to be 10 times more expensive than its cost. These prices, through their impact on the operations of Internet service providers (ISPs), severely constrain the growth of the Internet and ICTs in Samoa.”

Prepaid Services and Mobile Networks Not a Solution

Based on the premise that basic telecommunication services in most rural areas (basically any place in Samoa outside of Apia!) are currently non-existent or where available, are sub-standard, it is simply wrong and rather childish to assume that a relatively small capital investment in a mobile network and/or prepaid card services will remedy these telecommunications deficiencies while expecting to generate hefty revenues (as is the case with exuberant net profits of Telecom Samoa Cellular despite its own shortcomings – another subject to tackle later!). What Samoa needs is a solid telecommunications infrastructure that will sustain economic and social development and growth, not a prepaid, costly, ancillary and voice only mobile network - which after all drains resources of the poor. To set the record straight we, the broad public, welcome and embrace expansion, enhancement and competition in the mobile sector but NOT as an inferior substitute for basic telecommunication services! Access to good basic service such as safe water and sanitation, quality basic health, education, power, roads, and affordable and modern communications technologies all directly contribute to individual and ultimately societal well-being and are pivotal in helping low-income households to rise out of poverty. As a public service provider the question to ask SamoaTel is how to improve and expand services (which in due time often proves to be financially viable) rather than denying access based on short-sighted economical calculations.

Case in Point: HomeZone

While the HomeZone service level has somewhat improved since our public awareness campaign started and the multitude of billing problems that we pointed out have been partly rectified in the background by SamoaTel (without acknowledgment – but thanks anyway!), the real question still remains: why do we need the HomeZone service (which is really a mobile service) anyway? It is clearly not a substitute for a fixed-line telephone service: setting aside its serious billing and service level problems, it lacks the fax and internet capability, it costs SamoaTel separate investment in (GSM) equipment, maintenance and personnel, involves phenomenal cost for the so-called "boosters" (about $700 Tala per piece/customer), unlike regular fixed-line phone it requires mains power to operate (thus useless when power is off during cyclone), is not reliable for emergency situations due to frequent system outages, costs the end-user more to use than the regular telephone, undermines the fair and equitable distribution of communication cost and services in rural areas, and, last but not least, the so called "booster" is a potential fire hazard (see our website for details). In short, HomeZone is a bad investment and a disgrace for SamoaTel and a dis-service to the rural citizens who make up three quarters of the total population of Samoa.

Revisiting Billing Problems

It might be presumptuous of us to assert that SamoaTel will not provide refunds to its customers for its blatant billing errors and breach of terms and conditions, as we factually detailed over the past few months. We nevertheless feel obliged to highlight what rightfully is owed to the customers and so ask SamoaTel publicly to provide adjustments or refunds to residential and business customers as follows:

• Refund all HomeZone customers overcharges for the period of the past few years that were a result of incorrect prepaid card expiry date, multitudes of call rating errors and prolonged outages.

• Refund all postpaid (i.e normal residential telephone) customers for incorrectly charging national calls when calling local HomeZone numbers

• Refund all postpaid and prepaid residential and business customers overcharges for mobile call rates (charged 30 sene per minute (plus GST) instead of the published rate of 27 sene) since the rates went into effect a few years back.

While it is the responsibility of SamoaTel to initiate the refunds, we ask you, the customer, to simultaneously exercise your right and approach SamoaTel for refunds and elevate to the highest authority if not successful in obtaining the refund or adjustment which is rightfully yours. We also would like to know, either through the media, or directly, about your experience with SamoaTel in this regard.

In closing…

Our intent in pointing out inadequacies of SamoaTel on many fronts (basically providing a free consulting service for them!) is solely to trigger improvement while demonstrating that not everything SamoaTel claims can be taken as face value. We ask SamoaTel to make wise judgment in allocating budget/resources and start investing in Samoa:

• prioritise resources and start servicing growing number of people waiting for landline phone service (now about 4000 applicants waiting[5], some over five years[6] – why?),
  
• expand the rural area basic landline telephone service (highly populated, and fast growing areas close to Apia, such as Aleisa, would be a good start – incredibly, Aleisa still does not have landline phones up to this day, and hence no access to internet and fax despite a persistent, decade-long petition by its residents.)
  
• boost the bottom-line by lowering overseas call rates and provide the ISP's with better (and more reasonable charge structure) to benefit end-users,
  
• overhaul deteriorating copper line connections that, although connect to a 100% digital network, are mostly the cause of the frequent internet disconnections.

In short we ask SamoaTel to be right-minded, an ally of the people and mindful of future growth and development - none of which is counter to achieving growth, success and profit. If the answer is that the issues are much too complex and far-reaching, and that we and the broad public cannot grasp the intricacies involved - just try us! When has there been a feasibility study, a real cost-benefit analysis for providing services, a socio-economic impact study? And for that matter, where are all the financial summaries and statements of corporate intent of SamoaTel that ought to be public records?
The lack of appropriate response and remedial action from SamoaTel will only trigger us to intensify our public awareness campaign, broaden our scope, and if we see appropriate, elevate to higher authorities. We know SamoaTel wishes that we go away quickly and leave them alone so they can continue as they have done in the past - not a chance henceforth! This is a promise and a vow to our fellow hard-working citizen.

Sources:

1) International Telecommunications Union (ITU): Country Report – Samoa, 2000, Document: cntryreportsamoa.doc ITU Website: http://www.itu.int/itu-d/gender/documents/asia-pacificlwrkshopkorea/

2) International Telecommunications Union (ITU): The Changing International Telecommunications Environment, Samoa Case Study, 1998 – Document: samoafi2.pdf
ITU website: http://www.itu.int/osg/spu/wtpf/wtpf98/cases/index.html

3) International Telecommunications Union (ITU): INFORMATION DOCUMENT: COUNTRY CASE STUDIES OF THE CHANGING INTERNATIONAL TELECOMMUNICATIONS ENVIRONMENT
ITU website: http://www.itu.int/osg/spu/wtpf/wtpf98/cases/info/infodoc.html
See also: Central Bank of Samoa Bulletin, December, 1997, Table B-1, page 45

4) The World Bank: Samoa - Telecommunications and Postal Sector Reform Project, Report No.: 24794
Written permission obtained from The World Bank to cite selected segment
See full 99 pages report at The World Bank web site:
http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000094946_02120304010864

5) The number verbally stated by CEO of SamoaTel, Mike Johnstone in August 2005

6) Waiting list of up to 5 years stated in writing by SamoaTel former General Manager Business and Consumer, Peter Dix in January 2005