ICCC powerless on internet prices

ICCC Commissioner Paulus Ain.

By MATTHEW VARI

Sunday, October 9, 2016 (PNG)

INDEPENDENT Consumer and Competition Commission Commissioner Paulus Ain has stated that policy restrictions do not allow the economy watchdog from having any influence in the internet sector and its pricing, despite it fast becoming a most consumed service since the introduction of broadband services in the country.

Commissioner Ain agreed with the findings the recent report launched by the PNG National Research Institute that there needs to be some control and cohesion on the issue.

“I agree with the finding that we need to address this concern. We deal with the competition issue and our good friends from NICTA deal with the pricing issue- we seem to be all over the place at the moment and we need to look at how best we can assist the industry growing forward,” Mr Ain said.

“With the wholesale and retail I guess we have seen a great reduction and I think we need a further reduction. Our friends from Digicel are doing a wonderful job around the country but we need to give more back to the people of this country by reducing.”

“Retail part of the market we are struggling because nobody is looking at it- there needs to be some oversight in the setting of these prices- basically I can’t do much where I sit because this is a policy that the government sets.”

He said the commission will take on the findings positively to look at how best both they and NICTA (National Information and Communications Technology Authority) would handle the issues involved.

“We are taking in on positively and particularly we are looking at the regulatory reform areas, there seem to be two regulators dealing with almost the same thing.”

“We deal with the competition aspect of it and NICTA deals with the other aspect technical and others so we take this findings positive and go and sit down depending on what NRI as the lead agency in this report, and come up with reform than we should be to assist in trying to get a regulatory arrangement that is workable for the industry.”

He said the wholesale rates are not set by either regulators which he said with reforms should be enable them to.

“We do similar thing with wholesale rates for other PNG Power, PNG Ports and other industries, but for this one since the regulator is NICTA we are unable to do anything, but if there is a reaction to thorough change to government policy that ICCC can set than we are looking forward to set those.”

“Our influence extends to competition, we ensure that there is vibrant competition in the industry and there is no price fixing and there is no players in the industry colluding prices so we ensure that there is vibrant competition in the industry.”

“Our role extends that far, in terms of price setting and technical regulation is something that NICTA does.”

“Initially we had the economic regulatory function with the ICCC, but in 2009 after the amendments to the previous telecommunications act, the function has been taken back to NICTA again so we are only left with the competition aspect of the legislation.”

“I am particularly the internet rates and other telecommunication rates, having those roles under us previously I am fully aware of that industry, now that it has gone back we are just an observer seeing what is happening,” Ain added.