Vodafone Fiji has pulled out of a partnership agreement in Papua New Guinea which would have seen it manage state-controlled wireless operator Bemobile. The relationship between Vodafone Fiji, majority owned by the Fijian government, and the local…
Vodafone Fiji has pulled out of a partnership agreement in Papua New Guinea which would have seen it manage state-controlled wireless operator Bemobile.
The relationship between Vodafone Fiji, majority owned by the Fijian government, and the local operator fractured because of issues related to the use of a contractor to roll out the JV’s infrastructure, local newspaper the Post-Courier reported citing industry sources.
The agreement, struck in April, meant Vodafone Fiji would take over the management of Bemobile, which in turn would use the Vodafone brand.
However, it did not take an equity interest in the telco. Instead the Fiji National Provident Fund (FNPF) had agreed to take a 40% stake in the operator.
In April Pradeep Lal was appointed CEO of the joint venture, on top of his role as CFO and COO of Vodafone Fiji.
According to the local report, the end of Bemobile’s relationship with Vodafone Fiji opens the door to potential investors. However, the country’s prime minister reportedly indicated that state bodies would be tasked with reviving the operator.
Bemobile is the second-largest mobile operator in PNG, well behind Digicel. PNG has a population of around seven million and a mobile penetration level estimated at only 36%, according to the FNPF.
While Vodafone Fiji uses the UK group’s branding it is only 49% owned by the London-listed telco. The Fijian government has majority control.
