Header Ads

Internet prices in PNG to drop gradually, says DataCo

Papua New Guinea will soon have high speed low cost internet soon . PNG Dataco says Internet prices will drop gradually depending on demand.  “Obviously the prices will come down but not all at once”.
“Prices will be reduced by a certain amount at first and based on the growing commercial demand by the ISP (internet service provider) and their retail customers, it will be reduced again.
“That will continue over a period of time and in the next two years there will be a big change in the level of the internet prices.
“We are dealing with market forces and supply and demand are part of market forces so we will have to consider these things.
“When we look at our supply, we will have to see how much it costs us when building our infrastructure and also the number of people that are using it. As the demand grows and the ISP’s buy in bulk, the cost will be shared and that will also have a positive impact on the retail consumers.
“For example, in the past, there was only Telikom and the cost was shared among the telecommunications company and its retail consumers only, that’s why the price was high.
“But now with the CS2 (Coral Sea Cable System) and KSCN (Kumul Submarine Cable Network) projects, retail ISP’s can buy in bulk from PNG DataCo and the cost will be shared on a bigger base.
“When an ISP gains a lot of users, the bulk price will be reduced which will allow the ISP to also reduce its retail internet price and users can use a lot more capacity at a much lower cost.
“The price must also be set according to the cost of doing business meaning that it is sustainable and enables the wholesale business to continue and not die out due to loss in revenue.” The National/PNGeEhow


Powered by Blogger.