evaluations on timely basis in order to reduce the risk for an initially positive
intervention to start stifling the market development.
The Government recognises that its procurement of ICT services, products
and solutions has a potential to affect the operation of the private sector, especially
having regard to the scale of such procurement. In this context, the Government
expresses its commitment to act in this role as any other reasonable and prudent
large buyer of respective goods or services, seeking to maximise the long-term
value for its money. It believes that such best practice modes of procurement as
competitive tendering are the best tools to achieve such objectives. In any case,
the Government will avoid arbitrary assignment or distribution of its procurement
to specific market players. Where appropriate and subject to other provisions of
this Policy, the Government will also evaluate a potential of “build” versus “buy”
options, similarly to any other rational user of similar services or buyer of goods.
The Government is mindful, however, that it should seek to conduct its
procurement in a way that would avoid disrupt changes in market conditions (such
as resulting from a change of a supplier of services that constitute a significant
proportion of the market). Therefore it will investigate options to reduce an
impact of its tendering on the market, while still supporting and benefiting from
the market-force-driven operation of the sector.
The Government recognises that fair competition may, in certain cases, be
negatively impacted by “cream skimming”53. It considers, however, that direct or
indirect barriers for market entry or expansion would be a counterproductive way
to address such abuses, as they would enable complacency by existing market
players. Negative effects of such practices could be addressed by such policy
and regulatory instruments as coverage obligations, in particular associated with
radio spectrum assignments, and an appropriate Universal Access Policy (UAP),
especially the one formulated along the “pay or play” principles (i.e., requiring
every licensee to participate in the delivery of services to less economically
attractive users either by investing in the provision of such services or paying
money into the fund subsidizing such provision).
The Government acknowledges a potential, but also challenges presented by
internationalisation (and especially regionalisation) of ICT markets in enhancing
economies of scale. Many developing regions have been facing such trends. The
Pacific currently seems to be somewhat lagging behind in this process, but the
potential that such developments represent, especially for private sector players,
makes it likely that it will start catching up.
Internationalisation (in particular regionalisation) of ICT markets has a
potential to bring access to international expertise, new technologies, innovative
services and lower costs. Economies of scale, brought by this process, have a
potential of enabling stronger and more resourceful regional competitors and
enhancing competitive landscape by making national multiple-player markets
more viable.
The Government, however, also recognises potential challenges presented
by regionalisation and internationalisation of ICT markets, especially to national
policy makers and regulators constrained by the boundaries of their jurisdictions.
Local private sector players may also face challenges, if they do not find effective
53
“Cream skimming” is a practice of serving only high-value low-cost customers, and avoiding investments needed
to serve less profitable ones.
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National Information and Communication Technology Policy