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Cambodia
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V.I.P. INTERVIEWS
H.E. SO KHUN Interview with:

H.E. SO KHUN

MINISTER OF POSTS & TELECOMMUNICATIONS
THE KINGDOM OF CAMBODIA


Phnom Penh, June 27th, 2003

Reportage Special pour World Investment News et Far Eastern Economic Review
Can you give us a background and main developments of the Telecommunications and IT sector in Cambodia?

The Cambodian telecommunications sector has developed rapidly in the last 10 years. Before 1992, telecommunications in Cambodia was not really significant and in terms of infrastructure, not much had been set up. From 1992 on, the Royal Government of Cambodia, under Hun Sen's leadership, opened the telecommunications sector to foreign operators. The government started a joint venture with an Australian company called Telstra to develop the international gateway. Even though it was very hard to attract foreign investors towards Cambodia, the telecommunications sector in this country had two points of interest. First we put unto place a very liberal and open market and second there were plenty of donations from international organizations to help develop the sector. The private sector is mainly investing mobile phone services. Currently there are several operators in the country 011, 012, 016, etc…

On the other hand, the donations from foreign countries like Japan and France are mainly focused in the expansion of the landline telephone network. Japan is particularly active supporting the switching gear with capacity for a few thousand lines. The German government has also helped us to set up a cable network.

After the signing of the peace agreements, the UNTAC assisted us to set up a telephone network. When the UN mission came to an end, they left behind the network which was taken over by the Cambodian government. The penetration of fixed telephone lines is still low at present, only 3 per 1000. 85% of it is in the capital Phnom Penh and it is available in all provincial cities but not in the remote areas of the country. At the same time, the amount of mobile users is above 300,000. We have one of the highest proportions of mobile phones to fixed lines in the world.

What are the main infrastructure works undertaken by the Ministry and its partners?

Thanks to the German cooperation, we built an optic fiber transmission line from Thailand along road number one reaching Phnom Penh and linking the country with Vietnam. Thanks to this experience, the Ministry decided to finance and install with its own staff a 400 km underground line linking Serei Saophoan to Siem Reap. Now we are planning to start extending the lines towards the rural areas under the rural telecommunications development plan, we have to secure the equipment and the building will start. Next to our plans, there are also external initiatives like a Japanese group who is making a study for the construction of an optical fiber transmission line from the province of Kompong Cham passing by Takeo and Kompot to reach Sihanoukville. On the mobile telephony arena, each private operator is expanding their coverage to others areas in the country and what concerns Internet services, we have private and state owned providers. The setting up of the Internet in Cambodia was possible thanks to the assistance of a Canadian NGO.

The Ministry of Posts and Telecommunications has an operational side. There are already plans to privatize this operation to transform it into Telecom Cambodia. Can you tell us the main developments in this area and when this privatization take place?

The Ministry should have to be the regulator and not the provider, so indeed we are engaged in a policy of privatization of our services. The first step is to set up the Telecommunications Authority (TCA) in order to be able to prepare a Telecommunications Law. We have drafted some suggestions on how this regulator should have to function and discussed it for a long time with the Ministry of Finance how to set it up. The privatization is needed, but we don't want to go too quickly to avoid problems. We need to solve subjects like staff and assets and for that we have to create a committee. The ADB will assist us with foreign experts to set up these laws. They came last February to finalize the law that we want to see approved by the National Assembly by 2004. This year we have been able to finish the Law on Postal Regulations.

 

The Royal Government of Cambodia is making great efforts to reach the international standards of IT development with the formation of NiDA and the formulation of an ICT master plan. Can you tell us more about this institution and its role in the promotion of IT in Cambodia?

We really support this new entity, they have a very strong team with the prime minister as chairman. The NiDA has undertaken the task to create an ICT master plan and they are being assisted by Korea and Japan. They are also in charge of setting up the e-government, so they are being very useful to help structure internally all the governmental institutions.

You mentioned that the Ministry builds its own infrastructure and that you are supporting NiDA to achieve its goals. Does the Ministry have a training policy to get skilled staff for all the projects?

Indeed, we have one training center for mid-level technicians. When it comes to higher level of skills, we actually have a program to send our people abroad to Japan, Korea or Malaysia for instance. On top of that, Cambodia has also a university with a faculty of telecommunications.

Your Ministry is handling a sector with What about other

We have a…with a local company to set up a VOP network. I have heard they are in a trial period. I have already…and also you see from PP university…slowly we will call these companies to help us and the government will manage the VOP.

Gateway opening?

We have plans in the master plan to expand the number of gateways. We have the plan to have only two gateways in the first ten years.. For the moment they will handle the traffic. The Cambodian traffic is not enough for more gateways.

The government needs to privatize the commission so IT will develop through this policy. This government tries to facilities but the market is low and the investment is low… We provide the license for the cdma but the investor can implement because the market is slow. There are a lot of investors to contact me to invest but after they come they say they don't want to invest any longer. In telecommunication needs users and development of the country. Cambodia does not have enough users and so it will be a long term project for the long term investors. Stability of the country is important for the investor. Security is difficult for the investors.

I am please d to say I was you see the engineer in irrigation before 1970 at the ministry of Agriculture. Many proposals I wrote and I helped the farmer in the provinces by living there for more than a year. When the liberation came I came back here again and the government assigned me to a different department. Department of Water Resources and I was assigned as Prime Minister of Agriculture 1985-1992. Then I was assigned as Minister of Public Works and Post and Telecommunications. In the provisional government at that time I was Minister of Transportation. And after elections I was assigned to be the Minister of Post and Telecommunications as a new independent department. I have a BA and Masters in Economics. I was also an MP in the first assembly.

We are very proud and pleased because I can assist my country form the beginning when it was very difficult. To see all the developments in which I have participated gives me pleasure. From 1979 you can see so many things that have improved. The workforce has improved and we hope that the development will with the assistance from outside. The government considers the telecommunications sector to be important in the development plans for the country.

As Minister of Posts and Telecommunications, what is the message you want to bring over to our readers who are potential investors?

We are very happy to invite all the foreigner investors who come and want to invest in the economy. Why tourism is not the …full security, national security...we are now quite stable and the law and regulations comes to be more complete the investors will find it easier and easier to invest here in the country. Through you will you please help us to send the message. Cambodia needs investment from outside and we hope that this world will…we want to co-exist with the world we want to invite the whole world to come here…

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