Information and communication technology / ICT infrastructure

Tonga has been the first country among the Pacific developing member countries that introduced competition in telecommunications sector. Since 2002, access to basic telecommunications has increased significantly in Tonga. Mobile teledensity is around 60%, among the highest in the Pacific, and call tariffs are among the lowest in the region. However, Internet access, particularly broadband, is extremely limited, and user prices are as high as $400 per month for 512/128kbps broadband service, and demand is apparently suppressed.

The principal constraint to further telecommunications development, including introduction of new services and new market entry, has been identified by all stakeholders as the limited capacity and high cost of international bandwidth. This is due to Tonga's dependence on satellite connectivity which is inadequate to meet growing demand for bandwidth. Current market price for two-way satellite capacity is approximately $3,800 per Mbps per month. Total demand for bandwidth is projected to increase from the 2009 level of about 70 Mbps up to 332 Mbps by 2017, driven primarily by increased demand for fixed and mobile broadband. With the current satellite capacity and price, it would be impossible to meet the growing demand.

Improved access to and lower cost of international connectivity in Tonga will stimulate increased access to broadband Internet, and lower the cost of telecommunications services generally. Faster and cheaper connectivity is expected to have numerous positive development impacts for Tonga, including reduced transaction costs for business, Government and household communications; new business opportunities (for example, investments in e-commerce and business process outsourcing facilities); improved public service delivery, in particular to support e-education and e-health services which are of great interest to the Government. Improved connectivity will have significant social benefits in a country with a large number of the people residing in Australia, New Zealand and the United States. Recent studies illustrate a sizable impact of broadband internet services on the economic growth especially in developing countries. The submarine cable would also facilitate regional integration by lowering communications costs between countries in the region, in particular trade in services, collaboration in health and education service delivery, and in part compensate for limited transport infrastructure between and within island countries.

The PPTA requires six consultants with expertise in diverse areas for short duration. Therefore, individual consultants will be engaged for 6 person-months of international consultant services.

Consultant requirements have been met. Implementation is still ongoing.