Telstra has announced its acquisition of Digicel Pacific, which is regarded as the biggest mobile operator in the South Pacific. The acquisition has been made possible thanks to a partnership with the Australian government.
Reports have claimed that the acquisition was made to counter China's rising influence in the South Pacific.
Digicel Pacific is the number one mobile operator in Papua New Guinea, Samoa, Vanuatu, and many more countries in the South Pacific region. It is also currently the second-biggest mobile operator in Fiji.
Telstra Acquires Digicel Pacific
Telecommunications company Telstra has just announced its acquisition of the South Pacific region's bigger mobile operator, Digicel Pacific. The acquisition was made in partnership with the Australian government.
"Today we have announced the exciting news that we have partnered with the Australian Government to acquire Digicel Pacific, the biggest mobile operator in the South Pacific region," the press release published by Telstra states.
The website of Australia's Minister for Foreign Affairs, Senator Marise Payne, has also published a statement saying that "The Australian Government welcomes today's announcement by Telstra of its decision to enter into an agreement to acquire and run Digicel Pacific."
Telstra is expected to begin working with the governments under Digicel Pacific's jurisdiction regarding approvals and regulations now that the announcement of the acquisition has been made.
According to a report by ABC Australia, the acquisition is seen largely as an effort to combat the rising influence of China in the South Pacific region.
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Telstra's Partnership with the Government
Per the Telstra press release, the company will contribute $270 million in equity to the purchase, which is worth $1.6 billion. The telecommunications company will own 100% of the ordinary equity.
The Australian government, on the other hand, will contribute $1.33 billion via Export Finance Australia.
Senator Payne's statement notes that the government's contribution "will include debt and equity like securities designed to secure the Government a long-term return on its financing."
The Minister for Foreign Affairs' statement states that the acquisition of Digicel Pacific reflects the government's commitment to supporting the growth and development of safe infrastructure in the South Pacific region.
Telstra, according to the statement, is committed to providing the South Pacific region with quality service as well as "forging trusted relationships with Pacific governments."
What is Digicel Pacific?
The Telstra press release describes Digicel Pacific as the South Pacific region's biggest mobile operator.
Telstra's press release specifies that Digicel Pacific is the biggest mobile operator in Papua New Guinea, Samoa, Tonga, Vanuatu, and Nauru. It is the second-biggest mobile operator in Fiji.
Digicel Pacific has a total of 2.5 million subscribers from retail customers as well as 1,700 employees.
Telstra has said that it will continue Digicel Pacific's community development efforts in Papua New Guinea, Fiji, Samoa, Tonga, Nauru, and Vanuatu.
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Written by Isabella James
