Forum Economic Ministers Meeting : telecommunications tariffs in Forum Island countries ; session 2 Background paper held in Nadi,Fiji on 7-8 July 1998.

The attched report, prepared by the Forum Secretariat, reviews issues concerning the availability and cost of telecommunication services. Key findings are that costs are generally higher than in developed economies and that there is a high level of corss-subsidisation from international to domestic services (which assists residential users at the expense of trading business users). Other important findings are that service prices have not fallen as much in the region as they have elsewhere and that reform could be expected to lead to lower costs and greater penetration in the long run, though costs may rise in the short run if subsidies are wound back.