Telstra released a statement dated Monday 19 July 2021, titled, “Media Speculation on Digicel Pacific”, and confirmed to the Australian Securities Exchange (ASX) that it is having ongoing discussions regarding possible acquisition of Digicel Pacific in partnership with the Australian government.
We understand that the Pacific business covers markets in the South Pacific and is owned by Digicel Pacific Limited.
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| Photo by PNG Marketing Magazine |
Therefore, we are uncertain at this stage whether Digicel (PNG) Limited is affected by the Australian interest as Digicel (Singapore) Pte Limited (and not Digicel Pacific Limited) is the sole shareholder in Digicel (PNG) Limited.
We are also aware that Digicel (PNG) Limited is the sole shareholder in Digicel (PNG) Financial Services Limited.
Digicel (PNG) Limited is licensed by National Information and Communication Technology Authority (NICTA) and holds an Individual Application Licence which expires on 5 February 2024, and an Individual Network Licence which was renewed on 30 June 2021.
The Bank of Papua New Guinea licensed Digicel (PNG) Financial Services Limited.
As such, the news from Telstra has implications for National Government regulations, and especially the National Information and Communications Technology Authority (NICTA), Investment Promotion Authority (IPA), Independent Consumer and Competition Commission (ICCC) and the Bank of Papua New Guinea (BPNG).
Although Telstra has stated that, “The discussions are incomplete and there is no certainty that a transaction will proceed”, we remind potential suitors like Telstra that the issue of transfer of licence rights in a NICTA licence or licences currently held by Digicel (PNG) Limited would still require written consent from NICTA.
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