Alongside the introduction of competition in the form of new service providers, the statutory regime includes provisions for promoting the availability of telecommunications services of a reasonable quality, for all the Country’s Pa Enua populations.

One of the historical justifications for having a monopoly telecommunications provider, as VCI has been up to now, is that a single network enabled the cost of deploying expensive infrastructure at remote locations, to be spread across all the network’s users.

The nature and scope of this significant cross subsidy between user groups remained opaque to the community at large however. Moreover, the monopoly provider situation inherently excludes the impact of dynamic and productive efficiencies on a sole provider’s operations. These are amongst the reasons why competition in telecommunications service provision is now the preferred policy around the world, even for ensuring service at remote areas.

Pending the Authority’s adoption of something different for promoting “universal access” for Cook Islanders, in the form of a new statutory Universal Access Plan (UAP), the provisions of section 120 of the Act, will continue to compel VCI to provide services to the Pa Enua at the current levels. That obligation endures until November 2023, unless it is replaced earlier than that by applicable provisions of the Authority’s UAP.

The Authority will commence consultation on its initial UAP in March 2021. Because VCI has continuing obligations to the Pa Enua for the time being, and because the local and international economic environment arising from the Covid 19 pandemic is so uncertain, it is to be expected that the first annual UAP will need to be a ‘plan to have a plan’.

As part of the transitional arrangements devised for VCI giving up its exclusive licence, there is to be only one additional mobile telephony licence available before the fourth anniversary of the new legislation, which is November 2023. After that, there is no restriction on the number. The criteria for the award of a second full service mobile licence are determined by the Minister on the recommendation of the Authority.

The emergence of a second full service mobile competitor to VCI, and the impact of the less direct competition offered by ISP licensees, are fundamental factors in the design of a successful UAP. This is because competitors are likely to approach new infrastructure installation and service provision in novel ways. In addition, there can be competing bids for providing subsidized service to Pa Enua. Accordingly, the Authority intends to address both issues in tandem.

Public consultation on the UAP and Second Licence will commence in late March 2021.