evidoria

← Back to browse

Good practice

Solomon Islands Telecommunications and ICT Development Project

Solomon Islands · Honiara · See the Solomon Islands profile

A World Bank/DFAT-backed reform opened Solomon Islands' mobile market to competition, cutting call prices ~60% and lifting telecom access from about 11% to 54% of the population by 2013, though internet affordability remained a challenge.

1.2 US$
Cost of a 3-minute local call, 2010 (2010)
<0.50 US$
Cost of a 3-minute local call, 2013 (2013)
~60%
Fall in call prices
11 % (~65,000 people)
Telecom access, pre-competition
54 %
Telecom access, May 2013 (May 2013)
8,000+ agents
'Telekom Me' agents signed up since 2010
above 10%
Agent margins
4.8 AUD million
DFAT co-financing
Solomon Islands Telecommunications and ICT Development Project

Details

Maturity
Established
Promoter
Solomon Islands Government (Ministry of Communication and Aviation), World Bank/IDA, with Australian DFAT co-financing
Period
2010-2015
Keywords
connectivity, mobile access, market liberalisation, rural, affordability, women in business, Pacific islands

Context

Before this project, the Solomon Islands — a nation of over 900 islands spread across 1.34 million km2 of ocean — had one of the least developed telecom sectors in the Pacific, dominated by a single operator with high prices and minimal rural reach. The World Bank-financed Telecommunications and ICT Development Project ran from August 2010 to March 2015, with AUD 4.8 million in co-financing from the Australian Government's Department of Foreign Affairs and Trade (DFAT), working with the Ministry of Communication and Aviation to open the mobile market to competition and extend last-mile access.

Objectives

The project aimed to lower the cost of telecommunications and expand access by ending the single-operator monopoly and enabling market entry by a second mobile operator.

Activities

Reforms opened the mobile market to a second operator alongside incumbent Solomon Telekom, and the project catalysed a distributed retail network of 'Telekom Me' mobile top-up agents.

Results

The reform coincided with the entry of a second mobile operator, driving a roughly 60% fall in call prices — a three-minute local call cost $1.20 in 2010 and less than $0.50 by 2013, per the World Bank. Telecom access grew from an estimated 11% of the population (about 65,000 people) before competition to 54% by May 2013. Over 8,000 individuals and small businesses — the majority women — signed up as 'Telekom Me' agents since 2010, earning margins above 10%.

Conclusions

An Australian DFAT Independent Completion Report evaluated the programme as having achieved its intended outcomes, corroborating the World Bank's own reporting. However, the World Bank is explicit that this was primarily a voice/mobile-access success: internet affordability and outer-island broadband coverage remained a significant unmet challenge after the project closed, prompting a follow-on National Broadband Infrastructure Project.

Implementation

Implementation detail (cost, timeline, staffing, conditions for success) is not yet available for this practice.

Data sources

Where this practice's information was retrieved from, and when.

Attachments

Similar practices you may find useful

★ 72

EstWin

Estonia

The “Estonian Wideband Infrastructure Network” (EstWin) project seeks to solve the rural connectivity challenge in an area under-served by telecom …