Businesses and telecom providers face rapidly rising operational costs and challenges are exacerbated in Samoa by its small population and high level of investment says a telecommunication explaining internet prices.

Rana Bose, Chief Executive Officer of Vodafone Samoa said any increase in electricity and fuel prices will have a negative financial impact on the telecom industry, “the recent increase in electricity price increased operation expense by additional one million tala annually." 

“Samoa faces challenges due to sudden internet price reduction, increasing usage, network traffic, congestion, and requiring more investment in infrastructure, requiring a trade-off between pricing and resources," he said.

“The mobile towers and infrastructure require power supply for 24 hours a day and seven days a week, unlike other businesses

Mr. Bose further stated that the cost and pricing of internet services pricing is influenced by various components, including engineering, regulatory, and economic dynamics, arising from the interaction of various economic agents and competition.

“On the regulatory front, the telecommunication sector is heavily taxed and seen as a cash cow. The 27 per cent income tax, 2 per cent licence fee, 18 per cent customs on mobile, 15 per cent VGST and massive spectrum fees automatically increase the price of telecom services and products," he explained.

He assured that the network is adapting to the increasing demand for internet services, ensuring quality and control through optimal pricing to maintain network stability.

“Internet Service Providers (ISPs) are continuously investing to cater to the increasing demand of internet at a “controlled matter” through pricing to ensure Quality of Service," he said.

“The telecommunications industry does massive investments to stay ahead and relevant in the market.

"Moreover, the telecommunication industry is working on upgrading its network, including 5G, Moana TV app, e-SIM, QR Code, and M-Tala solution. These investments, despite being costly for a small population market, aim to stay relevant in the market."

He emphasised that data consumption increases with improved internet experience as congestion becomes less and the 5G service will be 10 times faster than 4G.

Digicel’s CEO Anthony Seuseu in response to queries from this publication said: “Expenses associated with maintaining network infrastructure have surged, driven by escalating power and fuel costs year after year."

He added that internet pricing undergoes rigorous annual scrutiny and approval by the Office of The Regulator, and consumer data consumption continues to soar annually, particularly on social media platforms.

From November, all commercial entities have had the 20 per cent discount revoked and the price per unit has moved up from 62 sene per unit to $1.21 per unit.