PNG DataCo Urged to Prepare for Starlink’s Potential Market Entry, Warns Minister Duma
State Enterprises Minister William Duma has issued a cautionary note to the PNG DataCo, urging its board and management to prepare for the potential disruption posed by Starlink’s entry into Papua New Guinea. Speaking at a Kumul Consolidated Holdings Limited meeting in Port Moresby on Friday, Duma emphasized the need for strategic readiness as the global satellite internet provider eyes opportunities in the country.
“DataCo continues to face challenges with low broadband internet capacity utilization in PNG,” Duma stated. “While it is commendable that DataCo remains committed to beginning debt servicing of the KSCN-1 loan in 2025 despite cash flow constraints, the looming presence of Starlink cannot be ignored.”
Starlink, operated by Elon Musk’s SpaceX, is the world’s first and largest satellite constellation utilizing low-earth orbit technology to deliver high-speed, low-latency internet. According to Starlink’s official website, the service supports activities such as streaming, online gaming, and video calls, leveraging advanced satellites and user hardware to provide connectivity to remote and underserved regions globally.
Duma also extended his warning to Telikom, another state-owned enterprise, stressing the importance of adaptability in the face of emerging competition. “The board and management must ensure Telikom adjusts itself accordingly to remain competitive,” he said.
Meanwhile, Information and Communications Technology Minister Timothy Masiu revealed last month that Starlink has yet to secure a license to operate in PNG. He explained that while the National Information and Communications Technology Authority (NICTA) had agreed in principle to issue certain licenses in December 2023, the process has been stalled due to legal intervention.
“A direction issued by the Ombudsman Commission in February 2024 under Section 27 of the PNG Constitution prohibits NICTA from granting approval for any network operator license to Starlink until further notice,” Masiu said.
In response, NICTA has taken the matter to court, filing judicial review proceedings in the National Court in August 2024 to challenge the Ombudsman Commission’s directive. The case remains ongoing, leaving Starlink’s entry into the PNG market uncertain for now.
As PNG’s telecommunications sector braces for potential changes, stakeholders are urged to proactively address the challenges and opportunities posed by advancements in global internet technology. With Starlink’s ambitious plans and DataCo’s existing infrastructure investments, the future of broadband internet in PNG hangs in the balance.
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