mobile

PTC PNG goes mobile

The Post and Telecommunications Corporation (PTC) in Papua New Guinea was to introduce a perma nent cellular mobile telephone service using the AMPS technology to Port Moresby and Lae in February 1996. Its Board of Directors originally considered digital GSM technology. However, after considering the time constraints and costs, it instead recommended AMPS. Another factor the board considered was the cheap er costs of AMPS handsets. A 100 per cent wholly owned subsidiary of PTC Telikom; Pacific Mobile will operate the service as a separate business unit.

Stanilite Electronics, a Perth based Australian company, won the contract to supply and install seven cellswitches in Port Moresby and two cellswitches in Lae, PNG’s second largest city.

Apart from producing cellswitches, Stanilite produces military communica tions equipment, cellular systems and trunked mobile radio systems. It has sup plied the AMPS cellswitch technology to Australia, Guam, American Samoa, Nauru, Vanuatu, Solomons and the Marshall Islands.

A 100 per cent wholly owned Telikom company, Pacific Mobile will operate the service that is expected to cost approxi mately SUS 3 million. Conservative esti mates indicate that 2000 customers will sign on during the first year of service.

However, initial enquiries from poten tial customers as a result of pre-launch publicity campaigns has indicated that more customers will queue up for a hand set come the launching date. Inquiries from potential customers such as company executives, and entrepreneurs have indicat ed that there could be more users than originally envisaged.

PNG began proposals for a joint ven

ture cellular telephone service four years ago. Twenty expressions of interest were received and were shortlisted to five, and then two. These were Cable & Wireless and Telecom New Zealand International.

By February 1992, only one proposal had been received from Cable & Wireless. This was found to be insufficient to make a rec ommendation to the Board.

Three of the companies that were on the original shortlist were contacted again in May 1992 and were asked to submit detailed proposals within a month.

Two of these companies, Detecon of Germany, because they could not meet the deadline, and Telecom Australia International, because they were doubtful of the joint venture. Only one detailed pro posal was received from Telecom New Zealand. Both Telecom New Zealand and Cable & Wireless recommended the AMPS cellular system.

In September 1992, the proposal to have a joint venture had changed from the notion of providing wide ranging services to that of providing a low cost, low risk venture contained within PTC. Feasibility studies were carried out to ascertain the viability of operating a cellular mobile telephone system without a joint venture partner, initially in Port Moresby alone. At that time the original design was based on a five-cell AMPS system at cost of supply ing and installing and commissioning the system ranged from KBOO,OOO to K 3 mil lion ($BOO,OOO to $3 million).

In June 1993, Telecom New Zealand was contracted to design a cellular mobile telephone system for Port Moresby, Lae and Mount Hagen on a turnkey basis, pro duce tender specifications and assist with evaluation of the tender bids. Telecom New Zealand also carried out a market sur vey during the year.

Calls for tenders were advertised in August 1993 and attracted 18 companies.

Tenderers were asked to bid for the supply and installation of either AMPS or GSM cellular systems, bids were received from Ericsson, who offered both GSM and AMPS, Alcatel who offered GSM only.

Motorola who offered AMPS only, and Stanilite who also offered AMPS only.

Costs of the AMPS systems offered were 40 per cent less than those of the GSM sys tems. Evaluation of the bids were made by Telecom New Zealand who recommended that PTC select AMPS as the cellular tech nology.

Mid-1995, PTC held several discus sions with Stanilite Electronics of Sydney who had developed a ‘distributed intelli gence’ AMPS cellular system. This type of system is cheaper and more flexible than a conventionally switched cellular system. It offers the operator entering the cellular market minimal start up costs with a sys tem that can be expanded to meet future demands. A Stanilite Cellswitch was obtained and tested, and proved success ful. It was purchased and was primarily used for providing telephone services to Hanuabada, Elevala, and Tatana villages on the outskirts of Port Moresby. These villages have demand for telephone ser vices, but cannot be connected by conven tional means because it is difficult and expensive.

The Rabaul volcanic eruption in September last year saw the installation of a cellswitch terminal at Kokopo within five days of the eruption to provide emergency telephone services. This system has since been transferred to Tunnel Hill above Rabaul to provide telephone services to commercial customers in Rabaul.