TechInPacific – It is time for the citizens of Papua New Guinea to celebrate as the country will implement low-cost broadband Internet. PNG Dataco said that Internet prices will be gradually reduced according to demand. This policy of lower prices will require a continuous process rather than a simultaneous process. “As a first step, prices will be reduced by a certain amount and, based on the growing commercial demand of the ISP (Internet service provider) and its retail customers, they will be further reduced,” Dataco states in its official report. “It will continue for some time and in the next two years, there will be a big change in the level of Internet prices.”
The revolutionary decision is made because of the supply and demand of market forces. Providing the Internet at an affordable price is crucial to the increasing development of infrastructure in the country. “When we look at our supply, we have to see how much it costs us to build our infrastructure and also how many people use it. As demand increases and ISPs buy in bulk, costs will be shared, which will also have a positive impact on retail consumers”.
For example, for many years, Papua New Guinea had only Telikom as its main Internet service provider and the cost was shared by other telecommunications companies. The result has been a skyrocketing price that may be unaffordable for many citizens. “But now with the CS2 (Coral Sea Cable System) and KSCN (Kumul Submarine Cable Network) projects, retail ISPs can buy wholesale from PNG DataCo and the cost will be shared on a broader basis,” continues DataCo.
As the number of ISP users increases, the wholesale price will gradually decrease. This will allow the ISP to lower its retail price and users to benefit from much more Internet capacity at a much lower cost. However, the cost reduction will also take into account the business perspective. It must be sustainable and flexible so that the wholesale trade can continue to earn enough income, even at a lower cost.