How to Enter the Market

Step-by-step guide for how to enter the FSM Telecommunications market

1. Decide what type of service you will provide and how you will provide it

  • This will determine what license(s) and access arrangements you will need
  • Services include internet, mobile telephony, fixed telephony

2. Research local business requirements

  • Understand what you need to operate a business in the FSM
  • For example, consider the need for visas, licenses, registrations, and local premises

3. Register as a business

4. Apply to the TRA for your telecommunications license(s)

  • There are three types of licenses you may need to apply for:
    – Individual license: This allows the person with the license to own network equipment and offer telecommunications services over that equipment
    – Class license: This allows the person with the license to offer services over a network but not own the network equipment
    – Spectrum license: You must apply for a spectrum license if you plan to offer mobile or fixed wireless services or use your own satellite for backhaul.
    – You must specify the frequencies you want to use when applying for a spectrum license. You can find spectrum frequencies that are allocated for telecommunications use here: https://tra.fm/wp-content/uploads/2023/10/National-Table-of-Frequency-Allocation.pdf
    – Spectrum already assigned to other licensees can be found here: https://tra.fm/public-register-of-licences/
    – There are specific spectrum rules that govern spectrum operators; these can be found on this link: Spectrum-LIcensing-Rules-FINAL.pdf
  • License applications can be made here:<hyperlink> : http://tra.fm/licence-application-forms/

– Use the operating license form if you’re applying for an operating license to own or operate a Specific Communications Network (an Individual License) or if you’re applying for a Communications Service (a Class license)
– New application fees are US$125 and Renewal application fees are US$100

  • Note that some services are currently exempt from requiring a license, including:
    – Services provided exclusively over an exempt network
    – Voice and messaging services offered over the public internet that are not assigned telephone numbers by the TRA.
    – The provision of satellite capacity by foreign satellite providers
    ▪ Exemptions are periodically reviewed and may be removed
    ▪ You can contact the TRA https://tra.fm/contact-us/ if you have questions about the licensing process or if you need assistance completing your license application.

5. Seek access arrangements

  • Telecommunication providers in the FSM can build their own network infrastructure or access existing infrastructure owned by other service providers.
  • In FSM, existing submarine cables connecting Pohnpei, Yap, and Chuuk, as well as FTTP networks in Pohnpei, Weno, and Yap, have been determined to be bottleneck facilities. The determination means that the owners of the bottleneck facilities are required, by law, to negotiate access to the infrastructure in good faith.
    Read more about the bottleneck determination here https://tra.fm/wp-content/uploads/2022/05/TRA-Determination-on-Bottleneck-Facilities-Final.pdf
  • Therefore, if you are not building and using your own network, then you will need to arrange access to an existing network for:

– International connection
– Local terrestrial distribution

In FSM, your current options are:

  • International connectivity:
    – CableCorp (subsea fiber: Guam-Pohnpei, Guam-Yap, Pohnpei-Chuuk)
    – FSMTC (subsea fiber: Guam-Pohnpei)
    – Satellite from a number of providers, including Kacific and Starlink
  • Local terrestrial:
    – FSMTC (FTTP) (available on Pohnpei, Chuuk (Weno), Yap Propper)
    – CableCorp (Open access FTTP) (Nationwide network currently under construction)

Access arrangement process
1. Request access from existing providers
2. If access is denied, or providers are unresponsive, contact the TRA for assistance
– The TRA has template access agreements that can be put in place through a determination process
– Note that licensees must first attempt negotiation in good faith on their own terms before approaching the TRA for assistance
– By law, providers receiving an access request are required to have made reasonable attempts to agree access within 30 days of receiving the request.

6. Seek interconnection arrangements
▪ If you are offering telephony (mobile or fixed) services, you will likely want to arrange Interconnection with existing telephony providers
▪ Interconnection will allow your customers to connect locally to the customers of other providers, without incurring international call or SMS charges.

Current telephony providers in FSM:
▪ Mobile:
– FSMTC
– iBoom!
▪ Fixed:
– FSMTC

Interconnection arrangement process
1. Request Interconnection from existing providers
2. If Interconnection is denied, or providers are unresponsive, contact the TRA for assistance
– The TRA has template interconnection agreements that can be put in place through determination
– Note that licensees must first attempt negotiation in good faith on their own terms before approaching the TRA for assistance.
– By law, providers receiving an interconnection request are required to have made reasonable attempts to agree Interconnection within 30 days of receiving a request.