Huawei behind PNG's digital rise

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Technology is increasingly becoming an important part of human life. Most of what we do today is influenced by our use of technology. As a developing country, PNG is seeing changes unfold caused by the technological revolution with the help of China. 

Many people now are slowly depending on their computers or smart phones to help them do things for their survival. One can access their bank account to transfer money from one account to another using their smart phone with access to the internet. There is no need to walk physically to the bank to manually fill in a withdrawal and deposit form. In addition, one does not need to stand in a long line to complete the transaction. 

COVID-19 is now seen as a catalyst for the technological revolution. The fear that we might expose ourselves to the virus if we come into close contact with others is changing human perception and behaviour. We now want to find out how best we can use technology to do some of the things that we do as human beings in crowded places.

The changes that are happening in PNG fits into the Digital Silk Road (DSR) timeline introduced by Xi Jinping. PNG has witnessed the setup of the Kumul Submarine Cable Network (KSCN) by Huawei for PNG Dataco. All of the coastal provinces are now connected to each other. The DSR project was divided into three parts:

  1. Consisting of 5, 457km span of submarine cable laid from Indonesia to Bougainville with branches into Vanimo, Wewak, Lorengau, Madang, Kimbe, Kaiveng and Kokopo. Date of completion May 2020.
  2. Connecting Port Moresby to Madang with branches into Alotau, Popondetta and Lae. Date of completion February 2020.
  3. Connects Kerema and Daru. Date of completion June 2020.  

Huawei constructed the KSCN but China National Machinery Import and Export Corporation supplied the cable equipment. This was the arrangement because China provided over 85% preferential buyers credit via the Exim Bank to the PNG Government to start the project.

However, other projects happened before the DSR period. In 2013, Huawei was given the contract by Telikom to setup the National Broadband Network (NBN). Interestingly, Huawei Global CFO Cathy Meng was in Port Moresby for the signing ceremony where she said; 

"Huawei is the world's leading provider of National Broadband Network rollouts, and we applaud both Telikom and the Government of PNG for implementing this visionary project".   

PNG Dataco completed the Highlands cable project in January 2016. The fiber optic cable known as PPC-1 or the northern link that runs alongside PNG Power transmission lines connected Madang and Lae to all Highlands provinces. In February 2016, they decided to connect the northern link in Mendi to the southern link, which runs from Port Moresby to Hides. The missing link connection enabled high speed-internet to the new Western Pacific University. 

Huawei has built the high-speed broadband backbone network that it has promised. Telikom customers are now using the ADSL+2 broadband fix-line service to access high speed and reliable internet. Telikom has capitalized on the service by offering their internet TV, which is a fixed line platform that offers 20 channels. Furthermore, Telikom now has a 4G LTE mobile broadband service, which uses the new backbone.       

PNG is now well connected and we have a second international internet gateway through Indonesia to the rest of Asia. As a result, the current internet speed is different in comparison to previous years. Also, internet pricing for mobile users has changed because Telikom is now competing with Digicel. Telikom has now merged with Bemobile to consolidate the competition.

In 2013, Cathy Meng said PNG would reap the benefits of high speed broadband, this is now happening. Emerging entrepreneurs and established businesses are using the faster and cheaper internet to engage in eCommerce. Credit to Huawei, PNG is now venturing into the unknown world of eCommerce.   

Instead of using only websites, emerging entrepreneurs and established businesses are using social media sites to market their businesses. Facebook and LinkedIn are popular social media sites that shows a lot of content and data about various new and established businesses. They are using these two social media sites because of the increasing number of users from PNG who have accounts.     

The PNG government and citizens are not concerned about the security issue expressed by Australia. William Duma said PNG does not have any enemies and is not worried about Huawei having access to the NBN. PNG sees Huawei as a genuine investor in the telecommunication sector and as a development partner.

The decision to knock back a counter offer by Australia, Japan and the US to build the domestic cable by PNG was bold. All three countries had the opportunity over the years to help PNG build its domestic network to help engage in eCommerce to improve the livelihood of citizens. In particular, Australia, who has a close relationship with PNG and has for years supported PNG with foreign aid.  

The Institute of National Affairs stated that the Coral Sea cable from Sydney to Port Moresby is unconnected. Is it because of the security issue? Is the delay caused by in-house politics between the different state agencies? It is now up to both governments to provide an explanation.   

Huawei might dominate the software and hardware market for internet technology in PNG. They signed a memorandum of understanding with Telikom, which allows the state-owned company to be the authorized distributor of Huawei ideahub. Telikom also sells the Huawei B315 hardware modem to all its broadband fixed line service customers.  

Apart from the 25 students from the University of Technology in Lae who went to China for training after the signing of the NBN contract, Huawei should train more citizens. The University of Papua New Guinea and Divine Word University offer IT programs. Students from these 2 universities must be selected and trained to continue PNG's digital rise.

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