ICT to Fiji

(Last updated: 16 Apr 2012)

Trends and opportunities

The market

Fiji has a relatively efficient and reliable telecommunications system with links to New Zealand, Australia and North America via access to the Southern Cross Cable. The Fiji Government has previously provided protection to three major monopolies, through the incorporation of a public company called Amalgamated Telecom Holdings Limited (ATH). ATH collectively makes up the bulk of the country’s telecommunications industry. However, after the deregulation in 2008, other telecommunication providers have started to come in – Digicel being the most prominent.

The Fiji government recently acquired the Cable and Wireless shares in FINTEL and transformed it into a fully local company.

The main companies include:

• Telecom Fiji Ltd provides domestic transmission of voice and data services.  
• Fiji International Telecommunications Ltd (FINTEL) is the supplier of international voice and data services into and out of Fiji and has launched a brand ‘Kidanet’ which is the supplier of Internet services. 
• Vodafone Fiji Ltd is the provider of mobile telecommunication services. 
• Digicel is already providing mobile telecommunications services and has become the second mobile telecommunications service provider in Fiji. 
• Unwired has also become one of the main providers of Internet services apart from ‘Connect’ and ‘Kidanet’.

The information technology industry is driven by the private sector with local franchise holders representing a wide range of internationally renowned brands and a number of local firms involved in software development and support.

Recently, the Internet market in Fiji was deregulated and new entrants to this market segment have started offering ADSL and wireless Internet services across Fiji.

With a population of less than a million people, Fiji is not a large market but one that is well suited for small to medium enterprises to test their products and fine tune export strategies.

Opportunities

Opportunity areas in Fiji’s information and communications technology industry include:

• Network integrators
• Mobile application providers and value add service providers
• Computer hardware and peripherals 
• Uninterruptible power supplies and surge control systems 
• Telephone systems 
• Integrated voice recording systems 
• Software and hardware consultancy services 
• Software products particularly in accounting, payroll, HRM, distribution and logistics, library, medical, legal, manufacturing, agricultural, hospitality, retail and POS systems 
• Wireless Internet services

The Fiji Government is embarking on e-commerce for all its ministries and departments and centralising government's data back-up storage bank.

Competitive environment

Australian suppliers face competition mainly from New Zealand. The other source of increasing competition is Asia, particularly for hardware.

Tariffs, regulations and customs

Fiscal duty on IT-related products varies from five per cent to 32 per cent. Examples include:

• Computer hardware – 5 per cent fiscal 
• Printers – 15 per cent fiscal
• Software – 5 per cent fiscal, 10 per cent import excise
• Networking equipment – 5 per cent fiscal
• Telecommunications towers (with fittings) – 5 per cent fiscal
• Copper cables – 32 per cent fiscal + 10 per cent import excise
• Optic fibre cables – 5 per cent fiscal

In addition, a 15 per cent Value Added Tax (VAT) is applicable on all products.

Customs authority contact details:

Customs Service
Fiji Islands Revenue and Customs Authority
5th Floor, Dominion House
PO Box 175
Suva, Fiji
Tel: +679 324 3000
Fax: +679 330 2864
Web: www.frca.org.fj  

Marketing your products and services

Market entry

It is recommended that Australian information, communications and technology (ICT) suppliers consider the following approaches to Fiji’s ICT industry.

Government

Government Suppliers Department and Information Technology and Computing (ITC) Services coordinate the Fiji Government’s ICT requirements and regularly issue tenders and requests for quotations. ITC Services will be able to provide further advice on short- and long-term requirements in various government departments.

Local partnership

Most Fiji ICT-based companies are interested in pursuing exclusive distributorship arrangements with reputable brands that give them the leverage for differentiation and competitive advantage. The advantage to the supplier is having a local representative that can grow and penetrate the market and that has the expertise to provide support services for long-term viability.

Australian suppliers should be aware of the following issues when exporting ICT products to Fiji:

• ICT suppliers would have a better chance of success if they are able to differentiate their products from what is already sourced from New Zealand, North America and Asia.
• Fiji businesses have experience in dealing with ICT products and are receptive to new and innovative products.
• Services and consultancy is emerging as an industry sector and this has been due to the loss of skilled personnel due to migration and limited capacity by local training institutions to adequately meet demand.
• Consistent contacts with the Government Procurement Office and ITC Services will be beneficial as they would be able to advise on short- and long-term opportunities and usually these are of a reasonable value and size.
• Fiji companies expect good back up support for ICT products that they take on.

Distribution channels

ICT products and services are distributed in Fiji through:

• Direct distribution
• Joint venture or distribution arrangements with one or a number of local business partners 
• Supply arrangements with large corporations and government based on their requirements 
• On a project-by-project basis through direct consultancy contracts with government agencies or corporate entities

Links and industry contacts

ICT-related resources

ITC Services Online (Publications) – www.itc.gov.fj/index.php?option=com_docman&Itemid=183

Government, business and trade resources for Fiji