 OUR VISION |
ATH is dedicated to become an Internationally competitive
company, facilitating communication within the South
Pacific Islands and with the rest of the world.
| OUR MISSION |
ATH'S mission is to grow its business, by expanding
investments into areas that complement or leverage
off the core investment in Telecommunications, both
in Fiji and beyond Fiji, to enhance its shareholder
value.
| OUR VALUES |
INTEGRITY - ATH will maintain high standards
of honesty in all its dealings.
ACCOUNTABILITY - As a good corporate citizen,
ATH will report and disclose information about
its business that is relevant to its stakeholders'
interests.
EFFICIENCY - ATH will manage its resources in
a manner that will generate the best outcomes
for its shareholders, customers and other stakeholders.
RESPONSIBILITY - ATH will serve the well being
of staff and others who make and depend on its
business.
GOALS
· Enhance shareholder value
· Exploit coverage between the information
and telecommunication sectors to enter new areas
of business
· Acquire existing business or create and
invest in newly established businesses to achieve
growth
· Become e company operating internationally
and prominent in the South Pacific Islands
· Adopt international best practices, standards
and methods of operation
| HIGHLIGHTS
DURING THE YEAR ENDED 31 MARCH 2001 |
· Net earnings for the year was $30.144
million up 1.1% on an annualised basis from last
year.
· New CDMA platform commissioned, enabling
roll-out of 'Easy Tel' wireless telephone system
initially in the greater Suva area
· Contact centre commissioned at Telecom
Fiji Limited, up 44% from last year
· Cellular mobile connection reached 55,057
up 135% from last year
· 125,000 telephone directories were published
and distributed, up 8.7% from last year
| FINANCIAL
PERFORMANCE |
Table
| PUBLIC
LAUNCH |
ATH was officially launched on April 3,200 by
the country's Prime Minister at a function attended
by many of the nation's political leaders and
businessmen.
It was the beginning of a public awareness campaign
to brand ATH that included the introduction as
well as the company's logo, highlighted on billboards,
televisions, and in newspaper advertisements.
We have introduced the theme: "Communication
have never been better hands," because
we believe that ATH has an opportunity to take
the communications industry and its products and
services to a new level, and are confident that
we will achieve this.
In our first year of operation we concentrated
on formulating and instituting the corporate structure.
But this year we have ensured that ATH is a known
entity in Fiji through our on going public relations
and advertising campaigns. The results have been
pleasing.
An important aspect associated with our branding
campaign is that Government has announced its
intention to sell 18% of its share in ATH in the
near future.
| PRODUCTS
AND SERVICES |
As a necessary first step to improving its network,
Telecom Fiji has been laying high capacity fibre
optic cables to link its exchanges together. And
while this is presently limited to selected areas
around Viti Levu, the company plans to extend
the fibre optic cable route entirely around the
island.
Telecom Fiji core telephony business has been strengthened
by the commissioning of the new CMDA wireless platform.
This has enabled services to be extended to new
areas that were previously uneconomical to cover
using connections to areas where cables are fully
utilized, and it offers another option for additional
connection to customers wishing to have separate
line for Internet.
An upgrade of the Telecard platform is being planned
for the New Year. It will make this increasingly
popular service available to a larger customer base
with added attraction of other value added services.
Vodafone's new Cellular mobile telephony continues
to show phenomenal growth in Fiji due to the popularity
of the Fastfone pre-paid service. The customer base
reached 55,057 at the end of the financial year,
a growth rate of 135% for the year.
The mobile network is supported by 59 base stations
and international roaming agreements, with 52 network
operators covering 37 countries around the world.
The Oracle and Unix based software that was developed
locally to produce the Fiji Telephone Directory
is generating interest from several island countries.
This follows the successful installation by Fiji
Directories of this software in Papua New Guinea.
| OUR FUTURE
|
ATH is a dynamic company that could very well be
the leader in communications not only in Fiji but
in the South Pacific as well. We understand our
potential but at the same time realise that to carefully
integrate our subsidiaries, grow our products and
services, and provide the leadership and commitment
from management and staff alike. I believe that
we are well on track to achieve these results.
| AN OVERVIEW |
As one of the largest companies in Fiji, reflected
in the continued positive growth of its three
subsidiary companies, ATH believes that it has
an opportunity to expand, not only the telecommunication
industry, but to introduce a range of products
and services in the entertainment and in the information
technology industries.
In only its second full year of operation since
it was incorporated as a public company on March
10, 1998, it has achieved substantial profits
after tax that has been given it the financial
strength to pursue its objectives.
For the financial year ended 31 March 2001, ATH
has reported consolidated net operating profit
after tax and outside equity interests of $30,144,000.
After adjusting for the different period lengths,
this resulted in a 1.1% improvement over the previous
period. Telecom Fiji Limited accounted for 17.7%
and 11.5% respectively.
The improved result was due to 4.6% increase
in sales revenue on an annualised basis. As can
be expected, Telecom Fiji Limited contributed
75.9% to total group revenue while Vodafone Fiji
Limited contributed 19.7%. The increase in sales
revenue was achieved despite the economic difficulties
that followed the events of May 2000. The major
contributing factors were the increase in the
international calls and calls route through the
mobile network.
The total income of ATH holding company increased
by 18.5% over the previous period on the basis
of direct comparison. Dividend income accounted
for 83.3% of total income and was 15.6% higher
then the previous period.
ATH was initially set up to consolidate Government's
investments in Telecom Fiji Limited, Vodafone
Fiji Limited and Fiji Directories Limited. The
consolidation was part of Government's sector
reform that included the corporatisation and then
partial privatisation of a number of public enterprises.
Following the initial set up of ATH in March,
a subsequent international bidding process conducted
by investment banker Credit Suisse First Boston
on behalf of the government resulted in sale in
November 1998 of 49% of Government's interest
in ATH. The bid by the Fiji National Provident
Fund (FNPF) was successful. The FNPF is now the
majority 51% shareholder after having acquired
another 2% as contracted, in September 1999. The
Government is currently retaining a 49% interest.
This would reduce to 31% if it succeeds by floating
up to 18% to the public.
Telecom Fiji Limited, is a 100% owned subsidiary
of ATH. It is the holder of an exclusive license
to provide domestic transmission of voice and
Data services until 2015. It operates Fiji's only
Public Service Telephone Network (PSTN) and Internet
service, and competes in the deregulated market
of selling customer premises equipment like telephone
handsets, PABXs and customer premises cabling.
Vodafone Fiji Limited is the country's sole provider
of mobile telephony service, using the Global
Systems for Mobile (GSM) standard. It is a joint
venture between Telecom Fiji Limited (51%) and
Vodafone International Holdings BV (49%).
But it is actively pursuing opportunities to invest
in Internet Service Providers with complementary
expertise, Application Service Providers, Data Centres,
Call Centres, Voice-over Internet and other content
businesses such as Television/Entertainment, to
substantially broaden its source of revenue.
In excess of $600 million has been invested in
the Telecommunications sector over the past few
years. It is testimony to the to the commitment
to deliver world class services to customers in
Fiji. It is the kind of commitment that only ATH
can continue to deliver with the help of a clear
and fair regulatory environment.
As one of the largest institutions in Fiji. ATH
understands that it has to operate to certain
standards expected of a good corporate citizen.
ATH will put in place policies and procedures
that ensure standards are met according to international
best practices.
A successful ATH will benefit not only its shareholders
but also the country as a whole.
| CORPORATE
GOVERNANCE |
ATH, as one of its goal is to attain best practices
in corporate governance. It plans to adopt international
practices, standards and methods of operations
towards this end.
Its corporate governance practices will continue
to be developed as it moves continue to be developed
as it moves towards public listing, which will
result in a wider shareholder base. It will continue
to adopt practices that are normally expected
of public companies even though it presently has
only two shareholders.
This is because ATH was incorporated public company
with its ultimate beneficiaries extending to many
thousands of people through its major shareholder,
the Fiji National Provident Fund.
ATH's adoption of a corporate governance policy
demonstrates its commitment to being accountable
and transparent in the way it operates, and confirms
the integrity of the system of control in place.
| TELECOM
FIJI LIMITED |
Telecom Fiji Limited is the domestic telephony
access provider in Fiji. The telephone system
was first introduced in Fiji in 1895 by the Colonial
Sugar Refinery Company. In 1910 it was taken over
by the Fiji Government to provide a national telephone
service. On August 19, 1989, the Post and Telecommunications
Decree was passed to provide the legislative base
for the corporatisation process of the telecommunications
industry.
A private limited liability company called the
Fiji Post and Telecommunications (FPTL) was formed
to acquire all the assets and liabilities of the
government post and telecommunications services.
The transfer of business from government to the
new company (FPTL) occurred on January 1, 1990.
FPTL was responsible for all commercial activities
and the government responsible for the control of
shares and regulation of the sector. Additionally,
the presentation of a Post and Telecommunications
License gave the company exclusive rights on the
provision of network services. The provision of
terminal apparatus was deregulated and opened to
competition.
Six years later on July 1, 1996, FPTL split into
two separate entities, Post Fiji Limited and Telecom
Fiji Limited. The separation recognizes the current
realities that the two services must be separated
to enable each to achieve its full potential as
a profitable business. The privatisation process
for Telecom Fiji Limited was brought into place
in December 1998.
Amalgamated Telecom Holdings Limited (ATH) was
formed by government in March 1998 as the vehicle
for privatisation of the telecommunications industry.
100% of the State shareholding in Telecom Fiji
was transferred to ATH. The government also entered
into a contract with Fiji National Provident Fund
(FNPF) as the strategic investor in the telecommunications
industry. FNPF purchased 49% of government's shares
in ATH and acquired an option for a further 2%
of the shares in ATH and management rights over
the government's 51% interest in FINTEL. FNPF
has acquired the 2 % and today have a 51% interest
in ATH. Of governments 49%, 20% will be offered
to Fiji citizens by way of an Initial Public Offering
(IPO) in July 2000. Government is expected to
hold 29% of ATH at the end 2000.
Telecom Fiji Limited has posted an after tax profit
of $25.4 million for the 12 months period ended
31 March 2001. On an annualised basis it is a 16.9%
improvement over the previous period. Total revenue
was a record at any 12 month period at $149.5% million
and exceeded budget of $148.7% million. Core services
once again accounted for the bulk of revenue at
75.8%. The major contributing were international
calls which exceeded budget by 5.2 % and mobile
interconnect revenue, which also exceeded budget
by 19.6%.
Given that the national economy is estimated to
have shrunk by 2% over the same period, this result
is most encouraging and reflects an ongoing commitment
and excellent communications between the Board,
management and staff to better focus their efforts
especially in the area of customer service.
A new Strategic 5 years Business Plan was adopted
by the company. It is substantially based on the
Scoping Study that was produced by Telecom New Zealand
for ATH. It includes steps to recognize Telecom
Fiji into a more customer focused organisation.
To this end Mr Norman Nicolls was appointed Chief
Operating Officer to drive the drive the business
agenda.
The CMDA Wireless Local Loop (WLL) platform was
also commissioned enabling the rollout of the
Easy Tel product. A total of $14.6 million will
be spent over 3 years over 3years on the CMDA
project, while total capital expenditure for the
year was $18.8 million. For the first time Government
has provided $800,000 to accelerate the deployment
of rural telecommunication infrastructure, part
of which 116 Easy Tel stations have already been
installation in the Rewa delta and Tailevu South
areas.
Plans are already in place for the installation
of a digital Subscriber Line (DSL) platform that
will provide customers with high speed access
to the Internet and corporate networks. DSL is
an enabling technology that is capable of delivering
services like high access for Internet content
and data customers, video on demand and video
conferencing for tele-health applications.
Telecom Fiji had realized for some time that there
was a need for a higher speed access network for
their customers. To solve these inconveniences
Telecom Fiji has recently launched ISDN and its
first generation products "Speedstream"
and "Speedstream Max". It has been laying
capacity fibre optic cables to link its exchanges
together. To speed up the process of making the
network available to other areas than Viti Levu,
where it is presently limited to, it will soon
purchase two optic cable-laying machines appropriately
called mole ploughs. These will substantially
speed up cable laying and will increase the availability
of ISDN significantly.
|
With the ISDN, the company is spending an initial
1.1 million FJD in the first year, and will spend
an additional 4 million FJD, with 1 million FJD
a year for the next four years, to put high speed
access within reach of the majority of our customers.
The Tele-card platform will also be upgraded to
give greater access to a wider customer base with
the added potential of offering the following services
on a pre-paid basis: calling card, Internet, residential
and Easy Tel.
Due to the difficult economic conditions, the
marketing strategy was focused on selected products
and services with a strong growth potential, including
Internet, Digital Data Services (DDS), Card Services
and Services and Customer Premises Equipment (CPE).
Amongst the major promoted activities initiated
during the year were: Tele-card Return and Win
competition, Tele-card 2000 design competition
and Net Saver and Easy Tel packages. Special promotions
were conducted for 5 cents per minute off peak
trunk call and special introductory discounts
for international calls to mark the commissioning
of the Southern Cross Cable Network.
Telecom Fiji had a total of 1,515 staff as at the
end of the financial year, including salaried, contract
and un-established employees. There were some difficulties
with staff relations resulting from the political
crisis last year but these were successfully negotiated
without unduly disrupting the flow of work. During
the year the new Performance Management System (PMS)
was implemented, staff relations resulting from
the political crisis last year but these were successful
negotiated without unduly disrupting the flow of
work force was rationalized.
Telecom Fiji is using international benchmarks
to gauge its performance in key areas. The telephone
penetration rate in Fiji is currently 10.6 lines
per 100 population. The international benchmark
is based on assessment of factors such as the
state of the economy, topography and national
development.
Another benchmark is the number of complaints
per 100 lines. The business plan had set a target
of 50 complaints per 100 lines. The business plan
100 lines but 132 complaints per 100 lines was
actually achieved.
Telecom Fiji potential is enormous, reflected
in its increasing profits and the expansion of
its increasing profits and the expansion of its
products and services. With the opening the Southern
Cross Cable that gives it substantial IT possibilities,
coupled with development funds especially in wireless
and rural growth, it will be an important factor
in ATH operations far into the future.
| VODAFONE
|
Vodafone Fiji Limited posted its most successful
year since it began operating seven years ago,
while record profits of $10,467,782. This was
a 44% increase over the previous financial year
and resulted in an $8 million dividend to its
shareholders.
Because of the political turmoil caused by the
May 19 coup, Vodafone became an important source
of telecommunications for a significant sector
of the population which helped increase its customer
base. Added to this was its innovative marketing
that significantly expanded customer access through
a number of prepay products. Vodafone experienced
record numbers, up from a customer base of 23,382
in 2000 to 55,057 this past year, a percentage
growth of 135%.
Prepay products proved popular with a number of
business organisations successfully obtaining
dealership that contributed to the record-breaking
increase in customers and income. The company
expects the dealers to continue to play a pivotal
role in growing its customer base.
It has introduced a new tariff plan on the prepay
platform called "Familyfone," during the
year. This has expanded the company's product range
and has been favourably received. The company is
now exploring further initiatives of a similar nature.
Vodafone continues to introduce innovations that
not only provide much needed services to the country,
but have made the company's product range more useful,
and therefore more in demand; one such product is
the fax and Data services targeted at the business
community.
It has introduced a new service friendly billing
system for post pay customers called Gemini. This
will go far towards strengthening its billing function
relationship with Vodafone Australia.
Much of Vodafone's success can be attributed
to its strong aggressive marketing through advertising
and its encouragement to its dealers to promote
and sell Vodafone products. This synergy between
the company and its dealers is highly visible
in the media where a constant stream of advertising
has strongly branded Vodafone throughout the country.
The company continues to increase its roaming
partners globally, which now stands at 52 network
operators covering 37 countries.
Vodafone won the Fiji National Training Council's
competition or its Quality Award that now establishes
it as a leader among the quality compliant organisations
and businesses throughout the country. Vodafone's
ISO9002 certification was also successfully renewed.
The company has committed a further $13,845,432,
in capital expenditure in infrastructure/base stations
installations. An additional $3,748,023 capital
expenditure has been approved by the directors,
but not committed by the end of the year.
| FIJI DIRECTORIES
LIMITED |
Fiji Directories Limited, that markets and publishes
Fiji's official telephone directory is shown another
profitable year with an after tax profit of $558,958.
The company has been profitable since its began
operations in 1993 as a joint venture operation
between Telecom Fiji and Edward H. O'Brien (Fiji)
Limited. This year's performance was all the more
extraordinary because of the political upheaval
the country has faced since may 19th 2000. The
company suffered a major disruption in sales through
restrictions imposed because of Security reasons.
In addition the political climate discouraged
a portion of the clients from advertising.
It now publishes and distributes 125,000 directories
up from 115,000 last year. It also resulted in
two month delay in the printing of the directory
that has forced a major reworking of its sales
and publishing schedule. But even with these difficulties
the company was able to achieve total revenue
of $2,249,683, down by only 11% on projections.
Fiji Directories continues to investigate ways
to increase its revenue base. Towards this end
it is exploring the possibility of expanding its
Internet web site that now features a search mechanism
for people and businesses in its white and yellow
pages. This would include opportunities for clients
to advertise as well as a linking service. Future
possibilities being explored are on-line shopping
and a range of on-line product services. Its web
site is http://www.whitepages.com.fj
Queries about the use of an Oracle and Unix base
software that was designed and developed to produce
the Fiji telephone directory have been received
from several island countries. This follows the
successful business transaction with Edward H.
O'Brien (PNG) Ltd where a copy of this unique
software was sold and mortified to produce Papua
New Guinea's official telephone directory.
Sales of the company's Fiji Business Search that
features selected categories of business from
its Yellow Pages, transferred onto floppy discs,
is picking up. It is a new concept in Fiji that
has required extensive education to illustrate
its uses to the business community. Those involved
in telemarketing, direct mail, and other forms
of niche communications have shown interest.
As part of its overall expansion into related
fields such as Internet, the company plans to
develop the sales team into a total business unit
capable of selling a range of telecom products.
With its Fiji Business Search and its Internet
web site this is beginning to happen.
It has an ambitious five year plan that underscores
the success of Fiji Directories. With its strong
financial base, it has the capability of taking
advantage of a range of business opportunities,
like the high speed Southern Cross Cable.
| CONNECT
INTERNET SERVICES |
Internet Services Fiji Ltd was proud to announce
the beginning of a new company on June 2002, Connect
Internet Services. Connect the re-structured internet
company was made a reality with the launching
of the $1.4 million new look Internet company.
The new company is part of the ATH $600 million
investment, even though they have broken away
from Telecom Fiji and set up Connect as an independent
company.
With its new name, new image, and new management,
Connect has introduced a number of innovations,
they have made major inroads into the previous
Internet problems. A number of concerns by Internet
customers have been addressed including price.
Significant attention has been given to customer
services with expanded office hours. They have
given a great deal of attention to improving their
relationship with customers and the public and
have introduced intensive training programmes
to make sure that staff is well versed in customer
needs.
Another innovation is the ability of customers to
now review their bill and usage on-line. By logging
into www.connect.com.fj,
customers can now review the status of their account
on a daily basis. Connect has also taken a more
proactive role in helping customers manage their
internet usage and advising them on the most cost
effective package to be on
Connect is offering five packages that range from
three hours to forty, reflecting the wide range
of demand and customers. Connect customers will
receive a separate bill each month instead of having
it as part of their telephone bill. This will allow
Connect to develop a closer working relationship
with their customers as well as include special
offers. For instance, to encourage a more efficient
billing system, customers will be given a choice
of either having their bills posted to them or in
receiving them via e-mail.
To further add to the ATH $600 million investment,
Telecom Fiji has developed its network. To achieve
it has purchased high speed access equipment that
will improve services for customers with ISDN,
an alternative to analogue dialup. This investment
has been made due to the increase of computers
as communications and information sharing tool
in Fiji. In addition, Connect has invested in
more powerful computer equipment to improve speed
and reliability.
| TRANSTEL:
THE PREPAID CARD PEOPLE |
Transtel is a newly created subsidiary company,
which will operate as a wholly owned Subsidiary
Company of Telecom Fiji limited under the Amalgamated
Telecom Holdings Limited (ATH). The company will
commence operations on 1st April 2003. The emphasis
of Transtel is to be totally responsive to Customer
needs and to face competition in this field.
Transtel will own and be the operator of the
unique Drua (Public) Phone booths. In addition
to the traditional prepaid telephone card Transtel
will manage the new Pre paid residential telephonic
service. Much excitement is abound within the
company that the service, which is gaining popularity
amongst the credit challenged and budget control
segment of the market, is amongst the first of
its' kind in the world if not the first.
The company will have a complement of 25 staff,
which includes those that are presently with the
section within Telecom Fiji at the moment. The Transtel
team will form the platform for the on time delivery
of innovative solutions to the customers in Fiji.
Current management foresees a role for the company,
with its current technology, in the provision to
the market of solutions for:
1. Exchange of information.
2. Transfer of funds
3. Exchange of goods and services over distances
with the use of Public Switch Telecommunication
network.
Transtel is confident that in the provision of these
services, the company will not only be serving its
corporate objectives but also be contributing positively
to nation building.
| EXCEED
PACIFIKA LTD |
A new telephony supply company has been born
out of Telecom Fiji and will commence operations
on 01 April. The company has a working name of
Exceed Pacifika Ltd, and will be on ATH Limited
subsidiary and will be made up of experienced
staff from Telecom Fiji. The new company will
focus on supplying customer premises equipment
(CPE) and cabling (CPC) to the business market
in Fiji and the South Pacific.
This field is deregulated in Fiji and the business
has to be more nimble footed and this was not possible
within the structure of Telecom Fiji. The new company
will have around 250 staff and supply leading brands
such as NEC, Brother, LG ARIA, Samsung, Kirk, Krone
and various telephony software applications. The
extent of distribution for products is across the
South Pacific and the new company intends to pursue
additional business opportunities in this area far
more vigorously than in the past.
The new company will also be focused on satisfying
its customer by improving its customer services
and delivery standards. There will be a vigorous
push to introduce service standards to match the
world's best practice. The new Chief Executive Barry
Cooney says the plan is to delight customers, not
just satisfy them. |
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