ICT to Papua New Guinea

(Last updated: 18 Jul 2011)

Trends and opportunities

ICT business opportunities

• Telecommunications: The formation of National ICT Authority (NICTA) in Papua New Guinea (PNG), effectively introduces universal telecommunication services by removing barriers to competition and freeing up the ICT market in PNG. Unprecedented economic growth putting on existing infrastructure and demand for new services. Currently, fixed line coverage is 170,000 from 70,000 in 2007 and has the capacity to further double growth in the next couple of years.
• PNG LNG fibre and broadband project: The government's announcement of the 750km fibre cable to support PNG LNG project’s activities at a cost of US$60 million presents opportunities for fibre-optic cable manufacturers, developers, consultants and training providers to provide capacity to stake holders in the project.
• E-government: The endorsement by PNG Government to implement the A$57 million e-government project aimed at improving service delivery within the public service presents a range of opportunities for companies that provide e-government solutions and technology relating to change management, budgeting, governance, data and risk management etc.
• Mobile telecommunication: Competition among the two mobile communication carriers in PNG has been driving opportunities in the area of value add services and new technologies to improve service delivery. In 2010, there were 1.7 million mobile subscribers from about 60,000 in 2007 with a growth potential 2.4 million consumers by 2013. 
• ICT services: Growth and diversification among leading ICT services companies in PNG provides plenty of opportunity for Australian solutions providers with specialised systems (business intelligence software, collaborative software, digitise document management solutions, RFID etc.) across a range of sectors.

Other business opportunities: digital and mobile content, mobile value added applications services, E-learning, networking security and value added services, content processing software, broadband, ISP, PBX, etc.

Why is this market attractive for Australian companies?

• Australia has a geographic advantage, closet neighbour, just 1 hour 40 minutes from Cairns
• Key legislations adopted from Australia/UK therefore, similar in many ways
• Same time zone
• Shares very close political and cultural history (Mother country, colony)
• Language – English is the mode of communication for commerce and government

Marketing your products and services

Market entry

Top tips to be successful in Papua New Guinea

• Have a continuous follow up plan with potential customers in this country. It also shows your keen interest in doing business in PNG to the potential customer.
• Show plenty of interest in your potential customer’s business before proposing how your product or service can improve their business. Take the approach that you want their 'advice' to better understand 'if' this will work in the PNG market.
• Appointments can change at the very last minute so be prepared to allow some flexibility, show composure and lots of patience.

How does doing business in Papua New Guinea differ from Australia and what do Australian companies need to do in approaching this market?

• Ongoing legislative changes to the National ICT law is being implemented, and while it is construed as being pro-business, companies need to understand fully what these changes mean for their business and urged to investigate situations prior to entering into any business commitments.
• PNG is a very small market so if your product is genuinely unique, the small size of the market can mean a product can be introduced very quickly at little cost. However if there is a similar well established product already in the market (or one currently being introduced) the market is just too small to sustain many competitors.
• Avoid arrogance and the 'hard sell'. Papua New Guineans like to think they have made the decision to suit their needs.
• Always follow up when a company has shown interest but has not committed on the spot. They usually want to trust the person and even see the product before entering into any arrangements.

Links and industry contacts

Government, business and trade resources for Papua New Guinea

National Information and Communications Technology Authority – www.nicta.gov.pg
Telikom PNG – www.telikompng.com.pg
Investment Promotion Authority PNG – www.ipa.gov.pg