Can competition transform FSM’s mobile market?
Competition in the mobile market works—even in small markets like Pacific Island Countries! When multiple providers compete, prices drop, and mobile usage rises.
When we look at other Pacific Island Countries, we can see the impacts of competition on mobile plan prices and usage. For example,
- Tonga’s population is similar to FSM’s. However, they have two mobile providers, TCC and Digicel. Tonga has achieved 100 percent mobile penetration, and the price of a basic mobile plan is $12.51 per month, less than half the price of FSM’s.
- Samoa also has two mobile providers, Vodafone and Digicel. They have higher mobile penetration and cheaper mobile plans than FSM.
Right now, there is room for improvement in the FSM mobile market. FSM’s mobile usage remains low at around 20-30% and isn’t growing. FSM’s basic mobile plan prices are more expensive compared to most other Pacific countries we look at. Competition is one way to enhance FSM’s mobile market.
The TRA collects data to track FSM’s mobile market and compares it with similar countries. The image below illustrates mobile competition in the Pacific Islands, or check out more information on our website here 👉consumers web page
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