Minister claims merger of state-owned operators is the only way to save Telikom PNG

20 Apr 2018

Papua New Guinea’s government has claimed that its decision to merge Telikom PNG with cellular operator bmobile and wholesale operator PNG DataCo is the only way to save the fixed line incumbent. The National cites Minister for Public Enterprise and State Investment William Duma as saying that Telikom is ‘broke’ and that a restructuring is the only forward.

As noted in TeleGeography’s GlobalComms Database, plans for a merger of Telikom, bmobile and PNG DataCo – all of which are state-owned telecoms entities – were confirmed in February 2017, at which date the National Executive Committee approved Decision No. 360 of 2016. Under this, a three-way merger is to be undertaken with a view to improving coordination and efficiencies across management and infrastructure, while creating a stronger, vertically-integrated company.

Response to proposed tie-up has been less than favourable, however, notably from the firms’ employees who are protesting the move over fears of layoffs. Duma has sought to quell such concerns though, noting: ‘Considering the tough economic times, we will not have any more termination of workers on the streets. Their jobs are secure’. He added: ‘As it is now, Telikom is broke and it is not making any money and to save the company from the banks, restructure is the only way.’

Papua New Guinea , bmobile (PNG), PNG DataCo, Telikom PNG

Subscribe



Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share