Papua New Guinea technology services company Datec is developing a ‘winning’ culture, according to Chief Executive Stanley Ng Plyler. He tells Business Advantage PNG that the company is looking to achieve both tangible and intangible improvements.

Datec’s Stanley Ng Plyler. Source: Datec

Plyler says the focus will be on innovation, productivity, and caring for the staff.

‘Last year we started a cultural change. We instituted what I call a “winning culture”.

‘What I did is get together all my leadership team for a retreat. We brainstormed what a winning culture is and decided on things such as teamwork, focus, caring for our people, results, process and so forth.

‘We looked at our vision, mission and values. Last of all, we articulated what our culture is all about. Because without a culture we cannot demonstrate our identity and our soul.

‘We will recognise your effort and your results and that is why there is a lot of energy and passion in this company.’

‘[If] You have no purpose, you don’t know where you are going.’

Performance and Culture

Plyler says despite a very challenging year of a soft economy, foreign exchange availability issues and an extended quiet period of the national elections in 2017, Datec team rallied and the company has met its latest annual operating plan. He says that the message to the staff is ‘We will recognise your effort and your results and that is why there is a lot of energy and passion in this company.’

Datec operations. Source: Datec

He says the human resources strategy is based on creating a single internal culture.

‘Successful innovation, Plyler says, does not come just from providing new products but also the way the company serves its customers.’

‘The national staff come from different tribes. There are more than 800 different tribes speaking different languages.

‘Outside the organisation our national staff have their different cultures, but inside we are all one Datec family.’

Innovation

Successful innovation, Plyler says, does not come just from providing new products but also the way the company serves its customers. That, in turn, reflects the ‘way we treat our staff.’

He says the company has a continuous improvement plan in place. ‘I call it the 1 per cent improvement plan.

‘The proposed submarine cable from Sydney to Port Moresby will be ‘great for the whole country’.’

‘Think about it. If you get a 1 per cent improvement every month, then after 12 months you get a compounded improvement of 13 per cent. And after five years and nine months you can actually improve 100 per cent.’

Cable

Plyler says the proposed submarine cable from Sydney to Port Moresby will be ‘great for the whole country’.

‘It is not just that prices will come down, the reliability will be there because right now we don’t have that. And we need higher speeds to process 4G and future advanced applications like the Internet of Things (IOT).’

Plyler says the company is strategically positioning for the new cable. ‘We have to be adaptive.

Datec operations Source: Datec

‘In ICT, things change very quickly. It will benefit many businesses, communities and transform lives. That is why I am here, to make a difference.’

‘A number of innovations are in prospect and Datec is excited to deliver innovative solutions and valued services to PNG’s businesses and communities.

‘The company structure is very flat. It has that private mentality and way of doing things.’ Plyler believes that competition within PNG is not just the focus.

‘We are a total-solution provider, not just a provider of products—a one-stop shop, end-to-end ICT product, services and training company.

‘It is important not to be complacent. Not just aspire to be the best in PNG, but also to benchmark ourselves with the Hewlett Packards and Ciscos of the world.’

Plyler, who has been in the position for less than a year, has lived and worked in seven countries in technology, telecommunications, education and healthcare industries in private, public and non-for-profit sectors in the Asia-Pacific region.

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Software entrepreneur Samson Korawali has helped establish five start-ups and a digital consultancy located in Australia and Papua New Guinea. He tells Business Advantage PNG that the country can benefit from developing its online business capacity.

Samson Korawali says online business can improve the country. Credit: Reelae

‘Website development and SEO (search engine optimisation) is really lacking in PNG at the moment.

‘When you Google someone’s business, or try to find local information, there’s hardly anything relevant and up to date. It is really frustrating for me, and I am sure for others too.

‘This is a major problem, but at the same time, a huge opportunity for businesses to utilise digital strategies and integrate SEO.’

‘Exporting goods and services via online platforms would positively impact our country.’

‘Investing into the right technologies that align with the business goals can transform a business, if executed by the right people and strategy. Exporting goods and services via online platforms would positively impact our country and currency. It will also help generate more jobs.

‘Our Internet Payment Gateway limits this, though, and I am actively working with BSP (Bank South Pacific) on a project to make this possible for us all.’

Consulting

Korawali grew up in Lae and moved to Sydney in 2006 to train in 3D game development, multimedia and mobile app development.

After three years working as an employee in Sydney, he started his own business, KK Consultancy, which is registered in PNG and Australia. It has been operational for six years.

‘We provide innovative digital solutions, servicing clients across the mining, government, corporate and educational sector. We’ve done 3D visualisations for mining companies, showing exploration and rehab simulations, website development and SEO, branding, software development, mobile app development and multimedia.’

‘Let’s increase opportunities.’

Korawali says his clients range from some of the biggest mining companies to start-ups.

‘I am trying to encourage start-up companies to use online platforms to sell their products and drive visibility.

‘Let’s increase opportunities to do business, not just locally, but across the country and even internationally.’

Start-ups

Korawali has branched out into starting up other businesses. The first was a biometric solution for monitoring employee hours.

‘Instead of clocking in manually, we have a face recognition system that employees use to clock in and out by looking into the device.’

Another business, registered in America, is called RunwayBuy, a fashion app.

‘Another app is called GoFood PNG.’

‘People can attend fashion shows live or streamed online and buy in real time when they take a photo off the runway.

‘It creates a platform for designers to showcase their designs on the runway and then sell their designs at these shows through the app.

Another app is called GoFood PNG.

‘It is almost like Uber Eats in Australia but it is the PNG version. We have partnered up with some of the biggest restaurants in Port Moresby. We have a staff of five.

‘We have drivers who go to restaurants, pick up the food after you order it online, and deliver it to your doorstep. That has been going on for about a year and half now.

‘Most recently, we have partnered with a few grocery stores, so people can order online and have their groceries delivered to their doorstep.’

Learning online

Korawali’s biggest project is a learning management system (LMS) called Reelae: ‘a platform that a student and teacher can interact on. Institutions sign up to this service, student accounts are issued, and the student can interact with the teacher and other students in their classes.’

The teacher can share the lectures, take attendances, mark group work assignments, and facilitate forums.

‘Our analytics engine (using Artificial Intelligence) is robust and powerful, sifting through a student’s interaction and activity while using Reelae. Stats are sent to the teacher showing their performances and activity.’ Version 1.0 is now ready to be trialed across Australia and version 2.0 is due for market release later on this year.

Staff from the University of PNG and some Australian universities have already signed up to trial version 1.0, which is being provided free.

Capital raising

Korawali is looking to raise capital to complete the development of version 2.0 and prepare for commercialisation later this year across Australia and PNG.

Eventually he wants to expand into Asia, Europe and the US, then have an initial public offering (IPO) in the US. He believes that the current LMSs on the market have severe limitations.

‘Even Stanford and Harvard are using legacy learning systems and we want to disrupt that market.

‘We are looking to grow organically, be patient and strategic so we don’t grow too quickly.

‘We want to compete with the “big guys” overseas.’

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The Chairman and founder of telecommunications company Digicel, Denis O’Brien, describes Papua New Guinea as a vibrant country that is a ‘fantastic location’ for investors. But he says the physical terrain also made it his company’s most challenging market.

Digicel’s Denis O’Brien Source: Digicel

When Digicel founder Denis O’Brien first visited Papua New Guinea, he says he was ‘quite taken’ by the country:

‘It was a mixture of a quite modern economy and an emerging market, maybe because of the resource sector but also because of small medium enterprises and the whole service sector.’

O’Brien says Digicel has invested US$850 million in PNG.

‘We launched in 2007. It was our most challenging network build because the (electricity) grid does not go everywhere.

‘We have 1100 towers, of which only about 300 are on the (electricity) grid.

‘We have to fuel our towers (ourselves) and provide fuel with helicopter drops every week.

‘So, from a build point of view, it was the most difficult network that we have done.’

O’Brien says he was pleased to find a ‘depth of management ability and capability’ in PNG, which helped when establishing the company.

‘There were some first class companies that had spent a lot of money on training management, so we were able to attract management very quickly.

‘Digicel is an ‘eclectic’ company, with big investments.’

‘The other thing we found is that only about one or two per cent of people had a phone, so there was a real need and an under-served market.’

Giving back

A Digicel PNG Foundation mobile health clinic reaches another community. Credit: Digicel PNG Foundation.

O’Brien says he did not want Digicel to be seen as ‘some Irish company’ investing a lot of money in Papua New Guinea, providing a good service, but not putting money back into the country.

He says the Digicel Foundation was set up ‘very quickly’—a move which he describes as ‘probably the best thing we ever did’.

He argues that,although ‘PNG is a fantastic location for investment’ there is a requirement not just to seek profits but also to be socially responsible— and not be seen as “robber barons”.’

That meant working with communities across the country.

To date, the Digicel Foundation has built health centres, libraries, 250 primary class rooms and 276 elementary classrooms.

Vibrant technology plays

O’Brien says Digicel is an ‘eclectic’ company, with big investments in Haiti and El Salvador among its total footprint of 31 markets across Asia-Pacific, the Caribbean and Central America—’reasonably challenging countries.’

Digicel is making some big technology plays. ‘We are dropping out of 3G because it is old technology. Now it’s all about fibre and LTE [long term evolution, or 4G].

‘Yes, there is risk in every country. But I think all the risks you see in Papua New Guinea are very manageable.’

‘We have laid fibre in Port Moresby, we have a satellite television business, we have a digital business, we are hoping to participate in the new submarine cable coming in, we employ a thousand people and we have 10,000 people who depend on Digicel for their livelihood in selling top-up cards.’

Coverage

Digicel delivers 80 per cent coverage of the country, he says, but the challenge is knowing where to build your network and where to focus your capacity – expecially with a population that is on the move.

‘We used to hire small Cessnas and photograph the countryside because we wanted to know where communities were moving to during the build of the LNG pipeline.

‘It was a way of trying to be accurate and working out where we would actually build that coverage.’

O’Brien believes PNG’s investment environment benefits from the historical role of British law in the country.

Manageable risk

‘When I look at risk—yes, there is risk in every country. But I think all the risks you see in Papua New Guinea are very manageable.

‘You have to employ local managers who can actually handle that environment.’

O’Brien pointed to ‘government stability’, which he argues has created a policy environment positive for foreign direct investor.

He especially sees a future for PNG in organic farming, for instance.

‘When I go to Papua New Guinea I always get excited because the vibrancy is just extraordinary.

‘It is about being in business and being profitable but also having fun and meeting people who are just a knockout.’

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An K331 million undersea cable linking Papua New Guinea, Solomon Islands and Australia is expected to be up and running by the end of 2019. It follows concerns by Australian officials that if China’s Huawei telco built the project, it could access Australia’s telecommunications infrastructure, creating national security concerns.

Map of the proposed undersea telecommunications cable. Source: Vocus

The Coral Sea Cable System will connect Solomon Islands’ capital, Honiara, with Port Moresby and Sydney via a 4000-plus kilometre fibre optic cable, replacing PNG’s and Solomon’s reliance on old, unstable and expensive technologies.

Final design and construction will take 18 months, with Sydney-based telecommunications company, Vocus, managing the A$136.6 million (K331 million) project.

Vocus is currently finalising the construction of a new submarine cable system, linking Australia to Singapore.

Earlier this year, Vocus carried out a three-month scoping survey for the project, which includes constructing a domestic submarine cable network in Solomon Islands, linking Auki in Malaita Province, Noro in Western Province, and Taro in Choiseul Province with Honiara.

Efficiencies

Linking the three countries in one project provides a lot of efficiencies in design, construction and procurement, an Australian Department of Foreign Affairs and Trade (DFAT) spokesman told Business Advantage PNG.

The first step will be to appoint a marine vendor, who will build and install the cable after it confirms the precise route. Local companies in PNG and Solomons are expected to be involved in the building of local landing points.

Australia will majority-fund the link using up to A$200 million from its overseas development assistance fund, with financial co-contribution from both Solomons and PNG.

‘The message from Australia is twofold.’

The Solomons government originally awarded the contract to the Chinese company Huawei, in a move that prompted Australian intelligence and security chiefs to warn the Australian government against the deal, who said it would refuse a landing point in Australia.

Message

BuddeComm telecommunications analyst Henry Lancaster told Business Advantage PNG the message from Australia is twofold: ‘Letting the other ‘Five Eyes’ (the US, UK, NZ and Canada) know that they are on board on perceived security issues, and (belatedly) giving an indication both to island groups and the Chinese that they retain a material presence in Oceania’.

‘China is increasingly the dominant force in many affairs across Australia’s backyard, and the Australian government wants to be seen to be stepping up to the plate,’ says Lancaster.

‘Boosting connectivity in PNG and Solomon Islands will drive economic growth.’

‘Cheap vendor loans and other economic help have placed many of the small island countries at China’s mercy, increasingly in debt financially and economically.’

The Director of the Pacific Islands Program at the Lowy Institute, Jonathan Pryke, told the ABC: ‘Having a Chinese state-owned enterprise connecting up to a piece of critical domestic infrastructure is pretty unpalatable for the Australian Government.’

Economic benefits

Australian Foriegn Minister Julie Bishop. Source: Australian Federal Government

The economic benefits of the Coral Sea Cable System are clear, according to Australian Foreign Minister, Julie Bishop.

She claimed that boosting connectivity in PNG and Solomon Islands will drive economic growth, and improve governance and security.

‘World Bank research estimates improved internet access and connectivity could grow GDP by more than US$5 billion (K16.2 billion) and create close to 300,000 new jobs in the Pacific by 2040,’ Bishop said in a statement.

It will reduce telecommunications costs in Solomon Islands, which is solely reliant on satellite technology.

The Solomon Islands Chamber of Commerce and Industry Chairman, Jay Bartlett, has welcomed the deal with Australia, and has stressed the significance of the cable investment and the positive impacts it will have on the economy, growth, investment and the private sector.

‘Among many benefits, the cable will boost the country’s internet speed connection, lead to cheaper internet rates, make it easier for more investment opportunities, and of course potentially create more jobs and opportunities for Solomon Islanders when businesses are thriving and expanding their investment frontier.

‘For businesses it will also improve productivity and reduce wastage in time and costs.’

Pablo Kang, the man leading the task force to implement the undersea cable for Australia’s Department of Foreign Affairs and Trade, will be a guest speaker at the Business Advantage Papua New Guinea Investment Conference at the Sofitel Brisabane on 6 & 7 August 2018.

For further information, visit www.pnginvestmentconference.com.

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As Papua New Guinea moves into an era driven by technology, both business and the role of women in business are being transformed, Mollina Kapal tells Business Advantage PNG.

Westpac’s awards (left to right): Karo Lelai – Winner of the PWC Private Sector Award; Mollina Mercy Kapal – Winner of the Precinct Public Sector Award; Ruth Kissam – Winner of the Trukai Community Award and overall WOW winner; Priscilla Kevin – Winner of the Steamships Not For Profit Award; Crystel Kewe – Winner of the IBBM Young Achievers Award; Cybel Druma – Winner of the Moore Printing Sports Award. Source: Westpac

For Mollina Kapal, a winner in this year’s Westpac Outstanding Women of the Year (WOW) awards, expertise in Information and Communications Technology (ICT) has been fundamental to her successful career.

Having ICT skills and capabilities opens up a wide range of career opportunities, as well as delivering great business outcomes, says Kapal, who is the Principal Project Engineer for the National Information & Communications Technology Authority of Papua New Guinea.

 ‘The roll-out of reduced voice and data rates is a big win for business,’ she says.

‘People have better access to information and can connect across an often logistically challenged country and with the world,’ Kapal adds.

Uptake

Despite the late start in Papua New Guinea’s uptake of ICT, Kapal says people have quickly adapted to new technologies and have been embracing the benefits.

‘We’ve seen an uplift for businesses and in overall productivity but, more importantly, capability in ICT has provided great opportunities for women in business.’

Echoing this sentiment, Luania Temu, founder of U’i Tiki Fashion and one of three finalists in the entrepreneur category of the WOW awards, says access to ICT continues to play a key role in the success of her online retail business.

‘Having a business online reduces risk and opens the door for female entrepreneurs.’

‘As the first local female entrepreneur to launch a fashion retail website a few years ago, I have since seen a significant growth in the online space for retailers across a range of industries,’ Temu says.

Access and expertise

U’I Tiki’s Luania Temu. Source: NBC Extra

Access to and expertise in ICT allows business to reach a wide audience, which you can’t always do from a shop front or office, Temu adds.

With no rent and minimal overheads, Temu says having a business online reduces risk and opens the door for female entrepreneurs.

‘Technology will be critical to improving the standard of living and connecting communities.’

‘We are seeing a new generation of women in business who are challenging what has been considered the ‘normal’ standards of how businesses should be run,’ she says.

With more Papua New Guineans engaging in self-generated income from ICT businesses and taking up careers in the sector, Kapal says this will play a role in the country gaining a competitive advantage in the global market.

Connecting communities

In addition to ICT infrastructure and expertise helping drive local business, Temu says technology will be critical to improving standards of living and connecting communities.

‘The ICT platform has proven to be a catalyst in providing an avenue for an equal playing field for women.’

‘The development of ICT is likely to have a positive impact on the future of Papua New Guinea.’

‘It’s important businesses and the wider community are supported by reducing internet rates, providing more ICT programs for business development and the implementation of user-friendly policies for women of all levels,’ Temu argues.

Having enjoyed a successful career in ICT, Kapal says working in the sector provides great opportunities, particularly for women seeking a challenging but flexible career.

‘The ICT platform has proven to be a catalyst in providing for an equal playing field for women.’

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Many businesses in Papua New Guinea are using the slow economic conditions to upgrade their computer systems, notes Steve Hillyard, General Manager in PNG for Pronto Software. However, he tells Business Advantage PNG, there is a reluctance to use cloud computing due to concerns about network infrastructure reliability.

Pronto’s Steve Hillyard

‘Most of our major customers in PNG are in the process of upgrading,’ observes Hillyard.

‘As the market has got tighter, people are looking at their systems. It is a time for them to consolidate and invest in their business.

‘Sometimes they can’t do that because they are busy, or another major project starts and they are looking at opening more stores, buying more stock and putting on more staff.

‘All those things aren’t happening right now.

‘So, they are investing some money in their business to get them up to the latest release of the software.

‘So that they can then take advantage of the economy when things kick along again.’

The cloud

Last year, Pronto Software invested in local cloud infrastructure to enable it to deliver its services over the internet. Hillyard explains that only a small number of businesses are using Pronto Cloud at the moment, however—although others are showing interest.

This contrasts strongly with the trend in Australia, where the uptake level for cloud computing was 80 per cent last year and is running at 90 per cent this year.

‘It is hard when you buy a new system—you don’t want to buy all the new hardware as well, or upgrades.’

‘With various security breaches that have happened worldwide, more people are thinking that having somebody else manage security and manage their servers is an advantage to them. So they are moving it into the cloud.

‘People have the chance to take it back in-house if they don’t like it. But, while it is in the cloud, it has a greater level of security.’

Communications

Hillyard says the greatest impediment to cloud computing adoption in PNG is the quality of communications technology (comms).

‘That is gradually being addressed by the local comms providers,’ he says.

‘Certainly the link back to Australia, the undersea cable, will help in 2019 to 2020.’

‘Once comms improve, by 2020-22, we will have a much bigger percentage in the cloud in PNG.’

The area of disaster recovery will also be a catalyst for greater interest in the cloud, he believes.

‘We have had a few customers who have had fires, and have lost a certain amount of data.

‘I would think that cloud computing would be an offering they will take up.

‘And, once you have part of somebody’s business in the cloud, you have then proved what you can offer them if they need that back up service.

‘Once comms improve, by 2020-22, we will have a much bigger percentage in the cloud in PNG.’

Regional businesses

Hillyard adds that retailers with regional business often cannot use the technology because they don’t have the necessary communications technology to their stores.

‘They are all running with lower inventory than they would like.’

‘They have got businesses where they can’t run live off the main server.

‘They have to have another local server so everything is happening off-line and being updated later.

‘In PNG, they can run more off-line than on-line, so we just run them off-line and then update it.’

APEC

Hillyard says the foreign exchange restrictions have also affected Pronto, he notes that some of the retail customers are finding it difficult to get some stock.

‘They are all running with lower inventory than they would like.’

He is optimistic, however, about the economic repercussions of the APEC forum.

‘(During the forum) it will probably slow down some projects that we are working on because people will be busy.

‘But we should see a kick on in business afterwards based on a higher level of confidence—and consumer spending.’

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Improvements in Papua New Guinea’s mobile infrastructure have seen rapid recent growth in subscribers to mobile broadband, according to telecommunications researchers BuddeComm. But low incomes, difficult terrain, and a lack of electricity are hindering greater access.

PNG mobile broadband subscribers. Source: Source: BuddeComm based on ITU data

There has been a ‘big leap forward’ in mobile broadband subscribers over the last couple of years, as a result of improvements to the infrastructure and rollout of 3G and 4G LTE in urban areas, according to BuddeComm telecommunications analyst Kylie Wansink.

She also predicts the new Coral Sea submarine cable linking PNG, Solomon Islands and Australia will improve internet access in PNG, as well as increase capacity, reliability and reduce costs.

Her analysis of data from PNG telecommunications companies and agencies shows around 48 per cent of Papua New Guineans now have a mobile subscription, up from 13.8 per cent in 2008.

‘Digicel and Telikom are both rolling out 4G LTE services across the country.’

She notes, however, ‘this remains extremely low by international standards, even for a developing country.’ But she believes it indicates that there is growth potential.

The 3G network covers more than 60 per cent of the population and the new 4G LTE network covers 35 per cent. Wansink notes that many rural areas still have only 2G services, although the World Bank is funding an upgrade.

Roll out

Budde.com’s Kylie Wansink. Source: Budde.com

Digicel and Telikom are both rolling out 4G LTE services across the country.

‘Digicel may find that it has more competition going forward—with the newly-merged Kumul Telikom sharing resources and infrastructure from bmobile and PNG Telikom,’ she points out.

Of the total estimated mobile subscribers of 4.052 million in 2018, Digicel has about 3.8 million (96.7 per cent), bmobile has 190,000 subscribers (2.1 per cent) and Telikom Mobile (formerly Citifon) has 40,490 subscribers (1.2 per cent).

‘Citifon’s service, as the name suggests, is focused on the more profitable urban centres. Although its rates tend to be cheaper than bmobile and Digicel, it remains a minor player in the mobile market,’ says Wansink.

The factors inhibiting a more rapid growth, she says, include the high cost of infrastructure, low incomes, the geographical spread of the population and the lack of access to electricity, which is running at 12.8 per cent.

‘Digicel uses solar-powered cell sites to provide mobile services in rural areas via the rural Communications Project, funded by the World Bank.

‘Mobile phones are an important source of social interaction, particularly among young people.’

‘These conditions mean that PNG remains one of the least affordable mobile markets in the Pacific’.

Coral Sea Cable System

Mobile phones are an important source of social interaction, particularly among young people, who are ‘embracing’ the digital age, says Wansink.

The drawback however, is low broadband speed. PNG ranks 150^th out of 200 in a May 2018 global survey.

But it is widely agreed that the development of the Coral Sea Cable System will improve the situation.

‘Fixed internet access, via computers, is mainly used by businesses, organisations, schools and hotels, as computers are still considered luxury items, and are owned by relatively few people,’ says Wansink.

Growth of mobile subscriptions in Papua New Guinea, 2008-2018

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The co-founder of Port Moresby-based software company Crysan Technology, Crystal Krewe, said a partnership with Google, the APEC Secretariats in PNG and Singapore, and the San Francisco-based Asia Foundation will aim to sell bilums online. Called the Digital Bilum Project, the aim will be to create an international presence.

Crysan’s Crystal Kewe wants to sell bilums online.

Speaking at the Business Advantage Investment Conference in Brisbane, Kewe said the aim is to create an online forum for the traditional item.

‘The idea behind it is to develop a national platform for bilum weavers or what we call Bilum mamas in PNG to promote and market bilums on a global scale.

‘We are working on a model that we will test during the APEC Leaders Meeting, we will see a major launching, where we will see APEC delegates will have the ability to purchase bilums while they are in the country.

But the focus is fundamentally on promoting traditional bilums—and not those made of synthetic fibres.

Share

Kewe said most bilum weavers do not get an equal share of what they make by the time the bilums are sold.

‘The middle men get most of the share. There is the also the issue that tourists who come to PNG cannot connect with the traditional and cultural significance of those bilums.

‘A country which does not innovate will stagnate and regress at the peril of its citizens.’

‘So the focus is on promoting traditional bilums in Papua New Guinea.’

Kewe says she will also be working with Westpac PNG and Mastercard to develop a payment gateway.

Innovation

Kewe, who started her first company with her father when she was 15 (she is now 18), said developing an innovation culture is critical to the future of Papua New Guinea.

‘A country which does not innovate will stagnate and regress at the peril of its citizens.

‘Papua New Guinea is fortunate to have natural resources that have sustained our economy comfortably since independence.

‘There is an urgent need to develop innovation clusters and supportive government policies.’

However, most of these resources are non-renewable and will soon run out.

‘Without innovation I think the country will be doomed when resources run out and there is no inflow of new ideas, businesses and opportunities to sustain the modern economy.

‘There is a need to recognise and modernise all actors in the economy in order to sustain innovation as a critical element of national development.’

Genuine bilums for sale in PNG. Photo: RNZ

Policy

Kewe believes there is an urgent need to develop innovation clusters and supportive government policies.

‘Presently institutional actors such as the governments, science and innovation agencies and research and training institutions and the ICT industry do not harmonise because there is a lack of innovation policy, strategic framework and systems that promote innovation to enhance economic growth.

‘We have a small vibrant community of ICT start ups with a membership of over 30.’

‘But PNG is developing a National Innovation Policy.’

Kewe said the innovation policy is focusing on inclusive economic growth which aims to develop, support, fund and guide the development of non-extractive sectors such as cocoa, coffee, copra, fisheries, timber and other ordinary commodities headed by the development of regional innovation hubs.

‘This means that the PNG tech industry will be a key contributor to the changing development landscape in Papua New Guinea.

‘Currently we have a small vibrant community of ICT start-ups with a membership of over 30.

‘We have organised ourselves into the PNG ICT cluster with several of our members already contributing in the education sector, conservation, micro enterprise and other areas using web apps.

‘We are working to raise awareness and link up with international organisations.’

Kewe was a recipient of the 2017-2018 Westpac Young Achievers Category Award at the annual WOW Awards, enabling her to travel to Brisbane for the PNG Investment Conference.

Some of the companies in the PNG Digital ICT Cluster in Port Moresby include:

• Nova solutions
• ArTech PNG
• Minsoft
• Skylinkinvent
• Crysan Technology
• Cryptotech Ventures

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Port Moresby-based retailer/wholesaler Supreme Industries found itself needing facilities and services it couldn’t source in Papua New Guinea, so it created them. Group Managing Director Sanjay Shah, tells Business Advantage PNG that the group has grown quickly and is anticipating more diversification.

Supreme Industries’ Sanjay Shah

Port Moresby-based Supreme Industries started in July 1997, primarily as a retailer and wholesaler, but has grown into a diversified company.

‘It has expanded into various industries: from manufacturing of uniforms, to offset printing and ICT solutions,’ says Group Managing Director Sanjay Shah.

‘The internet services will not go down because we use three different providers to back it up.’

‘The Supreme Group is associated with a lot of organisations, from mining to agriculture to the retail industry.’

PNG solutions

The very nature of PNG’s business environment drove the company to offer additional services, as Shah explains.

‘When you start building up your organisation, you come across the fact that there is a lot of facilities that are not available,’ says Shah.

‘So you have to backward integrate, or forward integrate, to move forward.

‘And, in PNG, you often don’t find the skilled work force, so you have to get different expatriates out of different parts of the world.

‘You source people with skills in the different industries to head your different operations—and then build a workforce around it from the local and surrounding population.’

Growth

Shah says when the company moved into ICT solutions, establishing Digitec earlier this decade, extensive background research was undertaken.

‘We put our efforts into putting up our data storage centre and then moving into internet solutions.

‘Basically, [we offer] ISP solutions for the business houses with a triple redundancy package.

‘The internet services will not go down because we use three different providers to back it up.

‘We are the only current providers who have got this triple redundancy in place.’

‘The company has levels, ‘but it is a more open’ type of hierarchy.’

Shah says growth of Digitec has been rapid and it has become ‘one of the major focuses of our company’.

He says the uniform making operations have also achieved strong growth.

Management

Managing conglomerates can be complex. Shah says the company has levels of management, ‘but it is a more open’ type of hierarchy.

‘There are people who can step up very easily without any going to the board of directors.’

One important management imperative, says Shah, is to control costs.

‘The company is looking to get into other sectors which are lacking in Papua New Guinea.’

Many local companies, he says, were overly optimistic because of the PNG LNG project, and were then caught out.

‘A lot of people increased their capacity to cater to such projects coming in the future, thinking that the second train and the third train would start immediately behind that.

‘They didn’t. Some people had to scale down; while some people kept their costs down so they managed to keep on growing.’

Future

Shah says the company is looking to move into other sectors ‘which are lacking in Papua New Guinea’. He points to education and health.

‘[There is a need] for enhancement of the workforce in Papua New Guinea.

‘It hinders a lot of expansion in the country. There is a need for skills and education, especially in the vocational area.

‘If you are doing infrastructure you need trade skills: plumbing, electricians, bricklayers, road builders.

‘At the moment a lot of that is lacking,’ he says, noting that a lot of work that should be done in PNG is currently going overseas.

The post How Supreme Industries has expanded in Papua New Guinea appeared first on Business Advantage PNG.

The Regional Director of Digicel Pacific, Paul Statham, says the company has ‘aggressive’ plans to expand its offerings when the submarine fibre cable from Australia to Papua New Guinea is built. He believes these innovations will especially benefit business.

Digicel’s Paul Statham  Source: BAI

Statham says the new cable can bring sharply lower prices, pointing to his experience in Kenya, where costs of data fell by almost 99 per cent after a submarine cable was put in.

But he warns that bringing the fibre cable to the shore is only one step.

‘Unless it is distributed across the nation, it is of no real benefit unless you live in Port Moresby—and even then, when internet capacity improves and prices fall, demand just increases and increases.

‘The talent we do have we want to focus on high value tasks.’

‘So we have very aggressive plans to build out metro fibre across the major towns and conurbations of Papua New Guinea, leveraging our network.’

The cloud

Speaking at the 2018 Papua New Guinea Investment Conference in Brisbane, Statham said Digicel plans to introduce cloud services, which he believes will be of great benefit to businesses in Papua New Guinea.

He said it could reduce IT overhead costs by more than a third, improve flexibility and increase quality.

‘One of the challenges we all face is a lack of talent in information and communications technology (ICT),’ he says.

‘There is the potential for ‘great growth’ in the digital economy in PNG.’

‘The talent we do have we want to focus on high value tasks.

‘Digicel is investing around US$10 million (K32.84m) in hardware that will allow businesses to access cloud services.’

Statham says that will allow businesses to have their qualified ICT staff ‘focused on higher value tasks for your organisations.’

Digital economy

Statham says there is the potential for ‘great growth’ in the digital economy in PNG, particularly with small and medium enterprises (SMEs).

He said it could see the PNG economy develop in the ICT sector ‘on top of the resource boom’.

He pointed especially to the use of mobile communication in agriculture.

‘It could see the PNG economy develop in the ICT sector “on top of the resource boom”.’

‘We have wireless IOT (Internet of Things) centres that transmit information about soil quality directly to a depositary that can be made to support small holding farmers.

‘There are alarm systems and CCTV (Closed Circuit TV) that can assist in securing the nation and its cities.

‘There are wearable monitoring devices that can allow an understanding of health care in individuals and communities—and the containment of diseases.

‘It can all be accessed through this Digicel network that is so pervasive and touches so much of the community.’

Coverage

Statham says Digicel enjoys 53 per cent geographical coverage in Papua New Guinea ‘which covers 86 per cent of the population.’

He says mobile penetration in the country is low by world standards, however.

He believes PNG has an opportunity ‘ to leap the technology curve’ because it does not have some of the ‘legacy infrastructures that more mature economies have had such as copper.’

Digicel has a 92 per cent market share, ‘both across retail and my area of focus which is business-to-business’ says Statham.

‘That market share has really come from the courage and the investment in the towers and the building of the network quicker than anybody else.

‘At least 10 per cent of our towers are only accessible by helicopter.

‘The (rest) tend to be very difficult to get to for a variety of reasons.

‘There are very complex social arrangements, particularly around landlords—but Digicel has done it.

‘Last year, we invested over $US45 million (K147m) in upgrading the network; looking after it and maintaining it.

‘It has delivered a sustainable infrastructure that will deliver a connected economy.’

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The development of micro and small and medium sized businesses (MSMEs) in Papua New Guinea requires cheaper internet access, embracing digitisation and creating hubs for sharing ideas, entrepreneurs told an APEC discussion forum in Lae last month. These are crucial if the government is to achieve its goal of creating 500,000 SMEs by 2030.

Benefit Capital’s Bessi Graham. Source: Benefit Capital

Wayne Golding, a member of the APEC Business Advisory Council (ABAC) told the forum—whose theme was ‘Innovation and Driving the Growth of MSMEs’—that digital innovation is critical to distributing wealth evenly throughout the country.

‘The engine of growth and innovation in the APEC region are MSMEs, comprising 97 per cent of all enterprises and employing more than half the workforce of the APEC economies,’ Forum chair, David Chen from the University of PNG, told the forum.

In 2016, the PNG government launched a plan to become a middle-income country by 2030, and a high income country by 2050, by boosting the number of SMEs from 49,500 to 500,000 by 2030.

Chen claimed this would increase employment opportunities in the sector from 291,348 to two million jobs.

‘One thing that the internet does well is to break down barriers.’

This, in turn, would see the unemployment rate fall from ‘the staggering 81 per cent at present’ to 49 per cent.

‘A concerted effort is required to achieve this: regulatory reforms, better infrastructure, faster cheaper and more reliable internet, and greater access to cheaper power,’ Chen said.

Digital economy

Redex Mobile’s Jeff Gilpin

Jeff Gilpin, entrepreneur and founder of Redex Mobile and employment agency PNG Workforce, said one of the biggest challenges is the high cost of internet access.

‘One thing that the internet does well is to break down barriers. If you want to learn stuff, it’s all out there.

‘When the internet is affordable, you will have access to some of the big platforms (provided by) the big multi-million dollar companies.

‘For example, cloud software and programs like Salesforce.com are already available to small enterprises as well as big companies.’

Golding pointed to other agriculture economies where land that used to yield just 10kg per plot is now yielding as much as 30kg using the same asset base.

He said the delivery of seeds to farmers and of farmers’ product to market using drones are examples of the enormous positive impact of a digital economy.

‘Good governance is critical.’

‘No one will succeed unless we get our communications infrastructure sorted out,’ he said, adding that the gap between ‘the haves and have-nots’ is widening.

‘Digital technology is actually widening the gap, because the countries which have the infrastructure and political will to reach across the whole community are doing better.’

Governance

Golding told the students in the audience he hoped they would develop ‘E-governance’ or electronic government.

He said it has the potential to eliminate 50 per cent of corruption by introducing non-intrusive systems and processes that are not interfered with by people.

‘So, what you get is the facts and what you get is the reality—not what is told to you.’

Another keynote speaker, Bessi Graham, Director and co-founder of Benefit Capital, said good governance is critical.

‘Having accountability and having a good board and structure that give visibility and accountability with financials—the way staff are being treated, and the question of delivering on promises—requires significant focus and attention.’

‘One of the secrets of success for MSMEs is to work together and share ideas and thoughts.’

She recommended that potential entrepreneurs try to discover ‘the gap in the market’.

‘We need to start to have a different conversation and think differently about how we change ourselves in society.

‘Part of that approach is to say: “What is it that I have, or my community has, that is of value that someone might pay for?”

Hubs

Golding also said one of the secrets of success for MSMEs is to ‘work together and share ideas and thoughts’.

He said universities are the natural location for meetings because the requisite facilities are already in place.

The post Boosting digital economy key to developing Papua New Guinea’s MSMEs, entrepreneurs tell APEC forum appeared first on Business Advantage PNG.

The Coral Seas Cable System—the undersea fibreoptic cable to be laid between Sydney and Port Moresby, and then to the Solomon Islands—will transform telecommunications in the two Pacific countries. Here we answer 10 key questions about this keenly anticipated project.

Map of the proposed undersea telecommunications cable. Source: Vocus

1. What is the state of the current cable between PNG and Australia? Cables generally have a life span of 25 years. The current connection is coming to the end of its useful life and has very limited capacity. It would not be able to meet the demand predicted for the next 25 years.
2. When will the new cable be up and running? The 40 Tbps (terabits per second) cable system (nickname: CS²) is expected to be finished and operational by December 2019. The cable will have four fibre pairs, about the width of a human hair each. 20 Tbps capacity will go to PNG, and 20 Tbps will go to Solomon Islands.
3. What is the cost? It has been valued at A$136 million (K324 million).
4. How will it change capacity? The cable has a technical maximum capacity of 10 terabytes per second, which is about 1000 times current capacity.
5. What are the stages of construction? A marine survey will define the precise route that the cable will traverse. Terrestrial construction activities will take place, including building the cable landing stations in order to connect it to domestic infrastructure in PNG and the Solomons. The cable itself will be manufactured in Calais, France, then shipped and installed towards the end of 2019. The installation in PNG will only occur in the last three months of the project.
6. Where will it be connected to Papua New Guinea? The landing site will be Kila Kila in Port Moresby. The undersea cable will be dragged up to the shore and then connected to a cable station that will be built on top of the cliff. The land is currently owned by the Royal PNG Constabulary.
7. Which organisations will be involved? State-owned PNG DataCo and its parent, Kumul Telikom, will be involved on the PNG side. Vocus Group has been selected to manage the delivery. The work to build and lay the cable has been subcontracted to Alcatel-Lucent Submarine Networks, while Telstra will provide the facility on the Australian mainland. Vocus has form: it built a 2100 km cable to connect Darwin to Port Hedland, and is working on a 4600 km cable to connect Perth with Jakarta and Singapore.
8. What are the funding arrangements? It is majority-funded by the Australian Government: on a two-thirds, one-third basis. The funding only applies from the Sydney hub to Port Moresby and the connection to the Solomon Islands. It does not include the cost of the on-shore network in PNG.
9. Who will own it? The revenue that is generated through the cable system will be 100 per cent owned by PNG and the Solomon Islands. They will own, independently and separately, the right to the data that is generated through the cable.
10. What organisation will manage it? A Special Purpose Vehicle will be created to manage and maintain the cable. It will be an Australian-registered company, with a board of directors, and will have a telecommunications licence to operate in Australia. There will be three shareholders, one from each country.

The post Ten questions answered about the Coral Sea Cable System appeared first on Business Advantage PNG.

The Executive Director of APEC, Alan Bollard, tells Business Advantage PNG that finding digital solutions that suit Papua New Guinea has been a focus of APEC discussions. Trust and integrity will be key factors in implementation.

‘Papua New Guinea has been keen to have an overriding priority on digital opportunities,’ Bollard tells Business Advantage PNG of this year’s APEC agenda.

‘But we have to remember that it is in an economy with very limited broadband access, so that is quite a big ask.

APEC’s Bollard Source: APEC

‘There is very limited digital coverage outside Port Moresby so what we have been doing is focusing on technologies that can be used that are appropriate for PNG’s stage of development.’

Bollard says this means considering remote access issues and looking beyond commerce into areas like health and education.

Solar powered

Bollard says one innovation is a box that is solar powered which will take a thumbprint for identification purposes.

‘You take it out to a village, power it up, people can put their thumbprint on it, it will work out a digital code and then deliver a digital identity, and a digital card, in a way that they can then use to open a bank account or for other government services—or potentially as a voting system.

‘APEC’s main focus in the digital sphere has been continuing work on getting the big digital platforms linked up.’

‘That has been developed by the PNG central bank.

‘It is very much a cheap, easily portable device and we hope that will help get more inclusivity in terms of being able to get bank accounts for small village traders or growers.’

Big platforms

Bollard says APEC’s main focus in the digital sphere has been continuing work on getting the big digital platforms linked up with all the APEC economies to ‘get small businesses into the marketplace’.

ABAC’s Wayne Golding

Wayne Golding, a member of the APEC Business Advisory Council (ABAC), told a recent APEC discussion forum that the focus is on having trusted systems.

‘Trust and integrity is one of the key areas: trust in the data, trust in the people who host your data.

‘That goes beyond your contract with your supplier. It now goes to one level or two levels behind that.

‘You need to ensure that the person you give your data to has the capacity to manage your data.

‘It is critical to develop appropriate consumer protection regulations.’

‘Then it goes one step beyond that, where the people you have supplied have enough connectivity and trust and integrity in their systems.

‘It is now getting to the stage where trust and integrity is a key factor in innovation.’

Payments system

Meanwhile, the International Finance Corporation, a sister organisation of the World Bank, has been working on helping the Bank of PNG develop a digital national payment system strategy.

The IFC’s John Vivian

John Vivian, the IFC’s representative in Papua New Guinea, also emphasises the importance of trust in digital roll-outs.

He tells Business Advantage PNG that it is critical to develop appropriate consumer protection regulations and practices, ‘so that as the wider range of financial services becomes available to a wider reach of Papua New Guineans, it does so with the trust of the people.’

Vivian says work with the payments system is ‘quite well progressed’.

‘We have supported new legislation which was passed and are now focusing implementing regulations and strengthening BPNG’s capacity to oversee their payment systems.’

The IFC is also supporting BPNG’s plans for an ‘interoperable switch’ for cards and mobile payments.

This will be a system that allows customers to use any card or mobile payment product at any merchant, ATM or EFTPOS machine.

‘It will open the system up to more than the current four banks and pave the way for more inclusion in the financial system and potentially innovative payment methods such as the use of QR Codes.

‘All of this work is done with the understanding that the trust of the consumer is paramount,’ Vivian says.

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Digital technology is transforming mining, although there can be financial pitfalls. One company taking an aggressive approach is Newcrest Mining, which is looking to be a ‘leader’ in its application of digital technology, according to Gavin Wood, the company’s Chief Information Officer.

Newcrest technician Louis Wanpis, PNG’s first CASA-certified drone pilot

Wood, speaking at the International Mining and Resources Conference in Melbourne earlier this month, said the company is keen to control the costs of its investment in digital technology.

Newcrest’s Gavin Wood

Newcrest Mining operates the Lihir gold mine in Papua New Guinea and is a venture partner in the Wafi-Golpu gold and copper project in PNG’s Morobe Province.

‘With the Cloud, you don’t need to spend big bucks to get a good outcome,’ he said.

‘When the gold price was low, we looked at an agile delivery model.’

He said the company’s IT investment over the last two years had more than paid for itself.

Variables

McKinsey’s Heyning said technology can improve geological modelling, and reduce margins of error in operations.

‘Companies are using Artificial Intelligence (AI) to run processing plants in a way that is hugely profitable,’ he said.

‘Companies are moving from equipment optimisation to whole-of-plant optimisation.

‘Despite the investment in technology having more than tripled since 1980, many companies are struggling to get an adequate return on their investment.’

‘You are talking about tens of thousands of variables.

‘Suddenly, you get a whole new layer of value. Processing and advanced analytics is where the money is.

‘Robotics is more capital intensive. Increasingly, pairing robots is where the money is.

‘For example, combining drones and autonomous trucks can reduce the margin of error in [extracting ore from] soil volumes by 20-30 per cent.’

Return on Investment

McKinsey’s Christiaan Heyning Source: IMARC

Heyning said 53 per cent of the impact of digital technology comes from advanced analytics, 25 per cent from process digitisation and 21 per cent from robotics and remote control.

He noted, however, that despite the investment in technology having more than tripled since 1980, many companies are struggling to get an adequate return on their investment (ROI) in digital technology.

Only half of all mining companies get an ROI above the cost of capital.

The challenge is in laying the digital solution across the company.

‘How do you scale the technology up to get a company-wide effect?’ he asked.

Heyning outlined five key success factors to achieve scale:

1. Doing things that make money in the next 6-12 months;
2. Making sure that the business is “pulling” the solution rather than the technology being “pushed” on to the business;
3. Use small pilot projects in multiple settings and change course often;
4. Address the culture head on to build a digitally capable organisation;
5. Develop a data architecture that allows the business to scale up.

Culture

Cultural challenges are often critical, according to Heyning.

‘People will be asking: “Will this robot take my job?”

‘Eighty per cent of the new skills need to come from the people you already have.

‘You can’t go out and recruit an entirely new organisation.

‘The model must be fully tested.’

‘Working with people on the front line is also essential.

‘Using very plain language also goes a long way to easing fears.’

Heyning said the digital technology has to work technically, change the approach to maintenance and inventory, and the model must be fully tested.

He said the mining company must then reallocate money saved on maintenance to other activities or profits.

‘If you don’t do that, it won’t work.’

Gains

GoldCorp’s Luis Canepari Source: IMARC

Luis Canepari, Vice President Technology, for the Canadian miner Gold Corp, said the company’s digital system,Robots, drones and profits: how digital technology is revolutionising mining IBM’s Watson, is faster than humans in analysing the company’s existing data to locate opportunities.

‘Watson is using 100 parameters and took 4.5 hours, rather than 165 hours, to identify new targets successfully.’

Canepari added that the digital technology improved shovel precision.

The post Robots, drones and profits: how digital technology is revolutionising mining appeared first on Business Advantage PNG.

Kumul Consolidated Holdings, the holding company for Papua New Guinea’s state-owned enterprises (SOEs), has released its Year in Review. It says that 2018 has been ‘particularly difficult and challenging’ for the country’s SOEs and that a fundamental change is necessary if the enterprises are to expand.

Workers at PNG Power, one of Kumul Consolidated Holding’s SOEs Source: KCH

Kumul Consolidated Holdings (KCH)’s review states that, at the end of 2017, PNG’s nine state-owned enterprises had net assets of K5.06 billion, employing 7117 people.

Collectively, they paid K103 million in dividends to the State in 2017. However, the slowness of PNG’s economy has had an impact on revenues.

‘The past 12 months have been particularly difficult and challenging as greater emphasis has been placed on mergers, labour rationalisation, reduction to operating expenses, and budget-focused micro-management to deliver profitable outcomes,’ the report states.

‘Not all our planned outcomes have been achieved and realised in 2018.

‘A fundamental change in the way the SOEs perform is necessary to ensure they are appropriately positioned for expansion.

‘This is not hiding the fact that our assets in some cases are simply not performing to expectations.’

The report provides financial information on some of PNG’s biggest SOEs.

Air Niugini

Air Niugini is expected to increase its revenues this year by K51 million to K1.096 billion, a rise of 4.5 per cent. Profit after tax is budgeted at K14.4 million, also up from a loss of K45.5 million in 2017.

The dividend it pays to the State is forecast at K7.2 million, down from K10 million in 2017.

The KCH report says the company is ‘reviewing all areas of the current structure.’

PNG Power

PNG Power is expected to marginally improve revenues, from K865 million in 2017 to K923 million in 2018.

Earnings, however, are stronger. EBITDA is budgeted to more than double from K57.1 million in 2017 to K125.2 million this year.

Key projects

The report identifies four key projects currently being undertaken by KCH:

• The K410 million Port Moresby Sewerage System Upgrade, which was handed over to Eda Ranu in October
• The 180MW Ramu 2 hydropower project, which will be built, owned and operated by a consortium headed by China’s Shenzhen Energy Group, with early works starting in 2019. The asset will be transferred to state ownership after 25 years of operation.
• The K879 million (US$270 million) domestic Kumul Submarine Cable System and international Coral Sea Cable System, set to be commissioned in late 2019.
• The Port Moresby Port Redevelopment Project, which will involve turning 38.4 hectares of land no longer in use as the result of the port moving to Motukea Island. The proposed redevelopment will include residences, hotels, serviced apartments, recreational areas, commercial buildings, a cruise ship terminal, retail and dining outlets, an ‘innovation centre,’ and a museum, all under a public-private partnership.

Net operating profits after tax are budgeted to rise from a loss of K15.4 million in 2017 to 34.8 million in 2018.

Having paid no dividend to the State in 2017, PNG Power is budgeted to pay K17.4 million this year.

Kumul Telikom

Kumul Telikom performance. Source: KCH

The state-owned telecommunications company, Kumul Telikom, is looking to reduce costs, according to the KCH report.

It is budgeted to generate a turnover of K414 million in 2018—an 12.5% increase on 2017—but still make a K20.3 million net operating loss due to higher costs.

Cost reductions will be partly achieved by the merger of the three entities within the group—Telikom PNG, PNG Dataco and Bmobile—into a ‘one communications service provider’.

Water and agriculture

The KCH report says Water PNG and Eda Ranu will be merged, with one entity serving all centres in the country.

PNG’s newest SOE, Kumul Agriculture, will where viable ‘invest in the development of sustainable agriculture projects across PNG from coffee to cocoa, palm oil to copra.’ Kumul Agriculture projects include the Central Dairies fresh milk project on the outskirts of Port Moresby and the Sepik Plains Agricultural Development Project.

Ports

PNG Ports is anticipated to have slightly lower cargo volumes this year, but revenues are budgeted to be up by 7.4 per cent to K281 million.

Profits are also budgeted to be up slightly, with EBITDA expected to rise by 6.2 per cent to K135.5 million. Capital expenditure is expected to increase sharply to K400 million, up from K150.8 million in 2017.

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They’re creative, they’re tech-savvy and they’re keen to share their stories. In the first of a three part series, Lisa Smyth speaks to six Papua New Guineans who are at the forefront of the digital push in PNG.

Film maker Katherine Reki

Papua New Guinea’s digital revolution may seem slow compared to other parts of the world, but that doesn’t mean that it’s any less exciting.

According to the latest instalment of Hootsuite’s annual world report, Digital in 2018, there are over 900,000 internet users in PNG, which accounts for 11 per cent of the population.

‘Hetri describes himself as a ‘typical village kid’.’

PNG bloggers, podcasters, filmmakers and social media gurus are making waves both inside and outside the country with their homegrown approach to digital creation, education and storytelling.

Village kid

Digital marketing strategist Ian Hetri

Ian Hetri is Brand and Digital Marketing Strategist for Linkpad Technologies and Publishing.

He is based in Port Moresby, but was originally from Morobe.

Hetri describes himself as a ‘typical village kid’ who was selected under the Pacific Island Leadership program to study at the University of Hawaii in 2014.

On his return to PNG, he started his own branding and marketing agency, LinkPad Technologies & Publishing.

‘Companies like my own, and others such as Blockchain Pacific and groups like the PNG ICT Cluster, are doing lots to advocate and drive change in this country,’ he says.

‘Young, vibrant, industrious leaders are emerging.’

Content

Hetri has really made his mark as a content creator and thought leader on LinkedIn.

He has surpassed 10,000 followers since he began posting original articles and engaging on the platform eight months ago.

‘My choice to be active on LinkedIn was as a result of Facebook tweaking its algorithm and my business page getting hit hard.

‘Now, I generate high-quality leads every week on LinkedIn using content marketing.

‘I was pretty surprised I got picked.’

In November 2018, Hetri organised the first ever LinkedIn Local PNG event, with over 300 attendees.

LinkedIn Local is a global networking series that has occurred in 150 cities around the world.

Stories

Film maker Katherine Reki is based in Madang.

She says she has dreamt of having her stories made into a film, but never thought she would be the one writing, directing and editing a movie from start to finish.

In 2015, however, she entered the Commonwealth Foundation Pacific Shorts competition (commonwealthwriters.org/pacific-voices) and won.

‘I was pretty surprised I got picked. I had a lot of self-doubt, but after going through the process of making the film I realised I can do this sort of work.’

Reki’s digital short film, My Mother’s Blood, shines a spotlight on sorcery-related violence in PNG and how women are valued in society.

‘A Divine Word University graduate and the mother of four children, she has had her film screened in Hawaii, Samoa, Fiji, New Zealand, the UK—and, finally, in her home country at the 2018 PNG Human Rights Film Festival.

‘A lot of people have thanked me for making the film and encouraged me to do more movies to highlight social issues in PNG. It was important to make this film,’ she says.

Read the second part of our series here.

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Young Papua New Guinea digital entrepreneurs are developing followings in film and podcasts. They are bringing something relatively new to the country. In the second part of the series, Business Advantage PNG talks with digital filmmaker Mellah Kilangit and podcaster Elvina Ogil.

Digital filmmaker Mellah Kilangit Credit: Mellah Kilangit

Mellah Kilangit is a digital filmmaker based in Port Moresby.

A computer science graduate from Unitech, Kilangit never planned to be a filmmaker.

But eight years ago, a cousin asked him to shoot and produce a music video—and he hasn’t looked back.

‘I was working in the mines and I would work on films during my breaks.

‘I am entirely self-taught. I went online and learnt the basics and grew from there.

‘Just pick up a camera and go online and learn as much as you can’

Kilangit does music videos and films for politicians, but he is passionate about using digital filmmaking to document the lives of ordinary Papua New Guineans.

‘Film is a medium to say the things you need to say.

‘We have 800-plus cultures and tribes in PNG—there are so many legends and stories I would like to tell through film.’

Kilangit posts his passion projects to YouTube.

At the moment, he believes there is not enough investment in filmmaking in PNG, but he believes that shouldn’t stop those interested in pursuing it.

‘Just pick up a camera and go online and learn as much as you can,’ he advises.

Podcasting

Podcaster Elvina Ogil Credit: Elvina Ogil

Elvina Ogil is a podcaster based in Sydney, Australia.

Born in Mount Hagen, and a lawyer by trade, Ogil is a massive fan of podcasts.

So much so, that last year she decided to launch PNG’s first-ever feminist podcast, Who Asked Her.

‘There aren’t enough spaces for intelligent conversations about the issues affecting PNG women, and the role we play in our societies,’ she says.

‘I wanted to change the narrative.’

‘Podcasts are a new medium for PNG’

Lauded by Marie Claire Australia as one of the top podcasts for women by women in 2018, Ogil’s listenership is mostly international.

But she has also had a lot of positive reception from her home country as well.

‘I had messages from people in Vanimo telling me they were buying extra data to listen to it.

‘Podcasts are a new medium for PNG, but they require less data than video and can be listened to anywhere.’

Active on Twitter, Ogil believes there is enormous scope for political podcasts in PNG.

She says that people shouldn’t be put off by the technical side of things.

‘It’s just me, my laptop and a microphone in my apartment with a guest.

‘If you think your conversation is worth having take the plunge—people just want good content.’

Read the first part of our three-part series here.

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In the last part of her three-part series about digital entrepreneurs, Lisa Smyth speaks with two inspiring Papua New Guineans who use blogging to empower their communities.

Credit: Carole Cholai

Blogger Carole Cholai is based in Kokopo.

Four years ago Carole, originally from Manus and a Unitech Computer Science graduate, entered a blogging competition that focused on agriculture and information and communication technology (ICT) stories.

As one of three encouragement award winners, she was flown to Kenya, Africa, to attend a social media training and she found her interests shifting.

‘I had spent 10 years working with computer hardware, but I realised how powerful blogging and social media were becoming. I became passionate about upskilling and empowering women and children to use ICT to improve their lives,’ she says.

A single parent of three children, two girls and a boy, Cholai developed ‘Girls in ICT Tech Week’ in 2015, where 20 secondary school girls gained ICT skills and knowledge. The program continues to run annually, and over 60 girls have already participated.

The work inspired her to begin her own blog, sharing ICT jobs, scholarships, events and opportunities from across the region.

‘There is a lot more access to the internet now through mobile phones, so I hope PNG ICT Meri can grow beyond just being a blog into a full website and brand, inspiring PNG girls to take up jobs in ICT,’ she says.

Funding the extraordinary in the ordinary

Scott Waide

Scott Waide is a journalist and blogger based in Lae.

In 2017, he celebrated 20 years working in TV, and today he is the highly respected Lae bureau chief for EMTV. It was also in 2017 that he decided to start his blog, Inspirational Papua New Guineans.

‘Working in news you focus a lot on negative stories about politics and corruption, and I wanted to put positive stories out there. I wanted to highlight the ordinary people who are heroes in their communities,’ he says.

With 10,000 views a month, Waide says his readership is split between Papua New Guineans and foreigners, mostly from the US, Australia and the UK.

Even though it is still a hobby for now, with over 6000 Facebook followers, he says the blog has taken on a life of its own.

‘I get sent suggestions of who to profile next all the time. There is a demand for optimistic stories, and as internet coverage grows across the country so will the number of PNG content creators,’ he says.

Read the first and second parts of this three-part series.

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The high speed Coral Sea Cable System, expected to be completed by the end of this year, will open up development possibilities for several Papua New Guinea industries. Laine Kidner, Chief Executive of data centre services company Connected South Pacific, outlines some of the outstanding opportunities to Business Advantage PNG.

Planned (brown and grey) and existing (green) undersea cables surrounding PNG and the Solomon Islands. Credit: Telegeography

The 4,7000 km long Coral Sea Cable System is a fibreoptic submarine cable system linking Sydney, Australia, to PNG’s Port Moresby and Honiara in Solomon Islands.

Combined with the Kumul Submarine Domestic Fibre Cable Network, the system will greatly improve PNG’s global connectivity and provide opportunities for a number of local industries. Connected Pacific’s Laine Kidner says that education and health care are two sectors that ‘stand out’.

‘If you don’t have high speed internet in the hotel facility, it is generally the first thing people complain about.’

‘Instead of having medical training in classroom, you have got the ability to connect globally with universities and colleges around the world to get access to their education catalogues—which is very difficult to do if you don’t have high speed internet.’

Kidner tells Business Advantage PNG that health care can be provided through technologies such as video conferencing to remote areas where it is very difficult to get quality medical staff.

‘It can be done using major centres as an initial contact. But you can’t do that without high speed internet.’

Tourism

Connected South Pacific’s Laine Kidner Credit: Connected PNG

The tourism sector is another industry that will benefit from faster internet, according to Kidner.

‘Firstly, people have to know about Papua New Guinea and I think PNG suffers because lot of the world doesn’t know what they are or who they are or where they are.

‘The new cable will allow better use of CCTV cameras, technologies such as swipe cards and intra-firm communications’

‘To promote the country as a tourism destination,  it is critical to have high speed internet—not only for brand awareness out into the global market, but also when visitors come in, whether holiday makers or business tourists.

‘When the new connectivity is out to the regions, and people have secure power, the e-commerce platforms are very easy to use, although it will be new.’

‘Everyone in the Western world expects high speed internet; it is just a given in most countries.

‘It is generally one of the first things people do when they get into hotel rooms is connect to the Wi-Fi to upload photos to Facebook or Twitter or Instagram.

‘If you don’t have high speed internet in the hotel facility, it is generally the first thing people complain about.’

Security and agriculture

Security firms can also be beneficiaries of faster and cheaper internet.

Kidner, who was behind last week’s Connected PNG Technology Summit in Port Moresby,  says the new cable will allow better use of CCTV cameras, technologies such as swipe cards and intra-firm communications.

‘It is going to be an opportunity for those industries to get better products and solutions into their business to develop their offerings.’

The agriculture sector, one of PNG’s most important industries, can also benefit.

‘E-commerce is a huge opportunity, particularly for the agricultural market for PNG. Things like vegetables, fruit, coffee producers in the regions.

‘You can’t have communications without power.’

‘If you are known to the world—where you are as a country, who you are as a country and the quality that you can produce—people want it.

‘But if they can’t get access to it, they are not going to buy it.

‘When the new connectivity is out to the regions, and people have secure power, the e-commerce platforms are very easy to use, although it will be new.

‘Once those initial pioneers start using the [e-commerce] systems, you will find a lot of others will jump on the bandwagon.’

Barriers

Coral Sea Cable System. Credit: CS2

Kidner acknowledges that barriers will have to be overcome if the possibilities are to be explored. One difficulty is overcoming remoteness.

‘It is very easy to get it to the main capitals, particularly Port Moresby, where the initial cable will come in.

‘Fibre cable is a physical product, however, so you have got to physically run a cable to those different locations.

‘Much of PNG is very remote, very mountainous and they do have environmental challenges like earthquakes.

‘It is very difficult to run the infrastructure to those remote areas.’

Another problem is the unreliability of power, which Kidner says is making PNG businesses hesitant to use the Cloud.

‘To get the Cloud to work you do need the pillars of your business [to be in place].

‘One of them is connectivity—you need to be able to connect to the application you are trying to use, such as Dropbox.

‘The second problem with PNG is power. You can’t have communications without power.

‘For Cloud adoption you need both to be very available and very secure.

‘It is an ongoing problem in PNG. A lot of technologies out there take high speed internet for granted and reliable power.’

Kinder is optimistic that there will be rapid adoption of new solutions when the cable is put in later this year.

‘One thing, travelling throughout the Pacific Islands, you do see as a common occurrence is an ability to jump a generation in technology.’

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Data costs are likely to fall by 80 per cent because of the Coral Sea Cable System, which is scheduled to be connected to Port Moresby later this year, according to Peter Williams, Chief Executive of Deloitte Digital. He believes Papua New Guinean businesses will have to rethink their approach to investment, hiring, management and technological roll out.

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