Well-Connected 
  Samoa Tel Opens New "Intelligent" Offices 

  By Afamasaga Toleafoa 
  Pacific Islands Online | Frburary 2005
  http://www.pacificislands.cc/pm22005/pmdefault.php?urlarticleid=0016

The building has an unmistakable state of the art look about it-smart 
lines, an ultra modern facade of reflective glass and metallic-gray 
alucobond, a composite construction material made from aluminum and 
plastic. 

"Alucobond was chosen for its durability and resistance to 
ultraviolet light. It is also low on maintenance, and will hold its 
look over time," Samoa Tel CEO Mike Johnstone says. The inside is 
also state of the art, the first "intelligent building" in Samoa, 
wired up to utilize the latest technology in building design and use. 
Special features include a bunker type construction in the switch 
area for maximum security especially during natural disasters, tele 
housing and audio and video conferencing facilities for the business 
community, a new 30,000-line switch, which is double the existing 
capacity, access for the physically disabled, special safety features 
against fire and other calamities, and its own power supply.

The building is three stories high, and easily dominates the semi-
urban surroundings. Next to it stands the satellite dish that 
connects Samoa to Intelsat. Together, the two proclaim in no 
uncertain terms that this is Samoa's telecommunications hub.

It is also the new home and nerve center, for Samoa Tel, Samoa's 
state-owned telecommunications provider. Samoa Tel was created two 
years ago when Samoa's old Post and Telecommunications Department was 
turned into a corporation, and given the mandate and the wherewithal 
to fast track Samoa's telecommunications and postal services to the 
21st Century.

In pursuit of its vision "to be a world standard communications 
company, delivering shareholder value through the provision of high 
quality products and services to its shareholders," the company 
embarked on a major infrastructure investment program that includes 
the laying of a fiber optic ring around the two main islands, the 
extension of telephone coverage to 85 percent of the country, 
restructuring of the postal services, and construction of new 
headquarters and a new telephone exchange.

Weeks before the opening on Dec. 20, telephone services to the remote 
west of Savaii Island were opened. This followed the earlier 
expansion of telephone services to the south side of the island of 
Upolu. "The opening of these services brings telephone services to 85 
percent of the country," Johnstone explains. "And we intend to 
increase this to 90 percent by the end of this financial year." 

But expanding the reach and quality of telephone services is only the 
first phase of Samoa Tel's development plans, according to Johnstone. 
The next stage will be data, with emphasis on broadband for business 
and for institutions such as schools.

According to Johnstone, Samoa is one of the few island countries in 
the Pacific that offers dedicated private lines at present. But the 
growth of this kind of service, and of other more advanced data 
processes, will depend on the economy.

Ensuring that Samoa is fully networked, locally and internationally, 
is a crucial part of Samoa's development. Existing businesses need 
adequate communications to compete and to market themselves. Samoa 
also needs to be in a position to take advantage of opportunities for 
investment in new industries, as Asian countries have shown.

It is with that in mind, says Johnstone, that Samoa Tel was recently 
restructured to be more of a business itself, "to change the way we 
do business, to operate Samoa Tel as if there was a strong 
competitor."

President of the Chamber of Commerce Sala Epa Tuioti says it is too 
early yet to see the full benefit of Samoa Tel's infratructural 
development of recent months. "The most pressing need for most 
businesses right now is to obtain reliable and reasonably priced 
telephone and Internet connections. Samoa Tel picked up a system that 
was a long way short from meeting the needs of business, and there is 
some way to go yet to achieve this. The new developments should help 
bridge the gap."

"There is also the question of cost," Tuioti says. The Chamber 
believes that the cost for international connections especially is 
too high and should come down. Government sees privatization of state 
owned enterprises and competition as the means to obtain the best 
results. So it remains to be seen what will happen with the Samoa Tel 
state owned monopoly. Tuioti adds that Samoa was a small market, and 
may not sustain too many competitors in such a capital-intensive 
field. "Nevertheless, government needs to appear to be even handed 
with its privatization program."

Samoa Tel, according to Johnstone is already at the forefront of 
communications in the Pacific. The company is relatively large by 
Pacific Island standards with revenues in excess of T$50 million (US$ 
30 million) annually, and a staff of 230.

Last year, Samoa Tel was criticized for having too many expatriate 
managers. But that is changing, with two of the five manager 
positions localized. The other three are being advertised locally and 
overseas.

CEO Johnstone himself joined Samoa Tel late in 2004 having worked 
previously for Telecom NZ, AT&T and Telstra among others. "Samoa Tel 
is a unique model for a country of this size. It is already an 
important player in the region. It is also unique because like the 
company's new T$17 million head office, it is fully owned and paid 
for by the people of Samoa." 
 










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