Country Report

1
Country Report

• Telecommunication Development
• in
• Republic Of Palau
• By A.Sato

2
GENERAL BACKGROUND

• The Republic of Palau (Palau) is an archipelago
  located in tropical western Pacific. The nearest
  landmasses are the Philippines (550 miles to the
  west), Papua New Guinea (800 miles to the south),
  and Guam (800 miles to the northeast). The main
  island group stretches some 60 miles and contains
  several populated islands and hundreds of smaller
  uninhabited islands. There are also several
  remote islands that are 200 to 350 miles to the
  southwest. The total land area of Palau is 170.4
  square miles. The Republic of Palau (Palau) is an
  archipelago located in tropical western Pacific.
  The nearest landmasses are the Philippines (550
  miles to the west), Papua New Guinea (800 miles
  to the south), and Guam (800 miles to the
  northeast). The main island group stretches some
  60 miles and contains several populated islands
  and hundreds of smaller uninhabited islands.
  There are also several remote islands that are
  200 to 350 miles to the southwest. The total
  land area of Palau is 170.4 square miles.
• In recent history, Palau along with the rest of
  Micronesia was part of the United Nations Trust
  Territory of the Pacific Islands. The
  Territories were administered by the U.S.
  However, in 1994 after numerous years of
  negotiations, Palau became an independent,
  sovereign nation. Palau now has tripartite form
  of government headed by an elected president
  (four-year term). Palaus legislative branch or
  National Congress is a bicameral legislature made
  up of senators and delegates elected every four
  years.
• Palaus population is approximately 18,000 most
  of the population is located in the capital state
  of Koror. Palau has a developing economy that is
  small but fairly stable. Palau has the potential
  for sustainable growth particularly in the areas
  of tourism and fisheries. Because of the
  environmentally sound waters and the sizable
  barrier reef that surrounds most of Palaus
  islands, there is abundant and diverse marine
  life. As a result, Palau offers some of the
  Pacifics finest diving and fishing.
• The key to sustainable growth is modern reliable
  infrastructure. In todays global information
  age, Palaus vitality and growth will be heavily
  dependent on the capabilities of PNCCs
  telecommunications network.

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Brief History of Telecommunications Development
in Palau

• The Palau National Communications Corporation
  (PNCC) is the Republic of Palaus national
  carrier for local and international
  telecommunications services. Telecommunications
  was the responsibility of the Trust Territory
  Administration. However, in 1982 that function
  was privatized resulting in the incorporation of
  PNCC. At that time PNCC had less than 200
  customers and less than 70,000 in annual
  revenues. In addition, a growing list of pending
  service orders was inherited from the Trust
  Territory government along with an undersized and
  outdated telecommunications system.
• Since that date, PNCC has made vast system and
  operating improvements digital switching and
  fiber optic technologies have been implemented,
  subscribers have increased to almost 8,200, and
  annual revenues have grown to over 5 million.
  Today, PNCC has one of the highest telephone
  penetration rates in the Pacific region as well
  as an investment per subscriber ratio that is
  over twice the global average.

4
Mechanism for Infrastructure Development

• The PNCCs enabling legislation established the
  corprations charter including operating
  conditions and parameters. The purpose of
  privatization was to establish a self-sufficient
  entity capable of providing telecommunications
  services at a reasonable cost and capable of
  attracting financing for infrastructure
  development projects. Given the massive
  investment costs to rebuild the nations
  telecommunications infrastructure coupled with a
  limited subscriber base, PNCC also was granted
  various rights and authorizations that enable it
  to operate as the sole carrier in Palau.
• As a result of its self-sufficiency, PNCC was
  able to secure low-interest financing form the
  U.S. Government. In particular, several years
  ago PNCC secured a 39.1 million, long-term loan
  from the U.S. Rural Utilities (RUS) to completely
  rebuild and modernize the nations
  telecommunications infrastructure. RUS
  specializes in providing financial, technical,
  and management assistance to utilities for
  infrastructure development. RUS provides
  traditional asset based financing (i.e., PNCCs
  loan is collateralized by PNCCs assets and
  revenues).
• PNCCs infrastructure projects are also built
  according to stringent specifications and
  standards established by RUS. RUS standards and
  specifications encompass buildings, material,
  equipment, and systems and are based on industry
  standards and codes (such as Bellcore, ITU, ASTM,
  TIA, and ANSI) as well as transmission, central
  office, and outside plant standards developed by
  RUS engineers.

5
Current Network Development in Palau (PNCC)

• PNCC has been very active in the last few years.
  Recently, PNCC completed the installation of a
  state-of-the-art digital switching system and
  subscriber carrier equipment. In addition,
  aerial cable plant was replaced with a
  combination of buried and marine fiber optics,
  copper and microwave facilities. The following
  paragraphs provide more specific network details.
• Central Office Equipment
• Trunking
• Fiber Optics Transmission
• Microwave Transmission
• Local Distribution Systems
• Wireless Systems
• Support Facililities
• International Connection

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• Central Office Equipment Two Lucent 5ESS
  CDX-2000 digital switches, a domestic and an
  international gateway, have been installed in the
  new headquarters building in South Babeldaob.
  The domestic switch also utilizes a remote
  switching module located in the capital city
  (Koror) exchange. In addition, containeraized
  carrier equipment (SLC 2000) has been installed
  in fourteen locations throughout the island of
  Babeldaob as well as the islands of Peleliu,
  Kayangel and Angaur. All equipment is served
  through the South Babeldaob main switch.
• Trunking All trunking is out of the tandem
  switch in the South Babeldaob office. The tandem
  switch provides CAMA/LAMA recording capabilities.
  The gateway switch trunks to the satellite earth
  station via fiber facilities. Both domestic and
  international facilities have SS7 capabilities.
• Fiber Optics Transmission PNCC has installed an
  OC3 SONET fiber optic undersea transmission
  network to connect local networks throughout the
  islands of Palau. In particular, PNCC has
  installed a festooned undersea fiber optic ring
  around Babeldaob and a fiber optic link to
  Peleliu using newly available shallow-depth
  materials and placing methods. There is a
  landing site at each of the fourteen locations
  where the fiber interfaces with containerized
  carrier equipment. These facilities have the
  capacity for distance learning, telemedicine, and
  cable television applications.
• Microwave Transmission Digital microwave radio
  facilities linked the containerized carrier
  equipment on the islands of Kayangel and Anguar
  to the SONET ring and, in turn, to the PNCC main
  switching center.

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• Local Distribution Systems PNCC recently
  completed construction of a buried outside plant
  distribution system in Koror and Airai. This
  system was designed to replace the overburdened
  and undersized aerial plant. The system features
  state-of-the-art distribution technology using a
  fiber to the distribution node design with
  subscriber carrier systems directly interfaced to
  the main switching center in Southern Babeldaob.
  PNCC has also constructed a first time
  distribution plant on other islands using both
  fiber and copper cabling.
• Wireless Systems In addition to buried cable
  distribution systems, PNCC also explored ways in
  which wireless local loop systems can enhance and
  expand services in Palau. Currently, PNCC and
  FTC, a private company joined efforts in capital
  and facility investment and created a Cellular
  company, PNCI utilizing an analog AMPS cellular
  system with coverage throughout Palau.
• Support Facililities The most significant
  support facility is the Headquarters and Central
  Office complex in Southern Babeldaob. This
  complex serves as the primary administrative
  office for PNCC and the communications hub for
  Palau. The facility has almost 15,000 square
  feet of office/public floor space and 6,000
  square feet of equipment/technical space. The
  site also has a large warehouse/shop building for
  materials supplies and equipment maintenance.
• International Connection In 1993, PNCC
  purchased and installed satellite transmission
  equipment that allowed the expansion of telephone
  lines out of Palau from 10 to 24. In 1994, the
  earth station was completely refurbished and
  upgraded to a digital Standard-B station. PNCCs
  earth station is fully owned and operated by
  PNCC. PNCC shares various digital satellite
  circuits, of which accommodates the growing need
  for private networks, public services and
  Internet access with seven international carriers
  ATT, MCI, Sprint, KDD, GTE-Hawaiian Tel,
  ITE. and Teleglobe in Canada.

8
Telecommunications Growth and Services

• PNCC has been experiencing significant growth in
  the last several years. With the completion and
  cutover of the new network, PNCC has been able to
  meet the demand for at least basic telephone
  service. At one point the pending application
  list had over 800 applicants but today it has
  been reduced to an average of 50 or less per
  month. Subscribers utilize a variety of services
  related to voice, data, and Internet
  communications. As a result of the new network,
  PNCC is also working towards offering new and
  enhanced services. Provided below is a summary
  of acitivities
• International Services International Direct
  Dial (IDD) service was implemented by PNCC in
  1993. PNCC currently has over 600 IDD customers.
  PNCC also utilizes a debit and credit card
  system for international calls (customers
  purchase an average 3,000 prepaid cards a month
  and there are over 700 credit card users). In
  addition, PNCC has 6 dedicated international
  leased circuits.
• Internet, Distance Learning, and Telemedicine
  Applications PNCC introduced Internet and
  e-mail services to Palau in March of 1997.
  Internet service has been so popular (over 1,200
  customers) that PNCC recently expanded from a
  dedicated 64 KBPS to a 192 KBPS pipeline in the
  second year of service and recently added another
  backbone connectivity with Teleglobe Canada with
  an Asymetrical link at 1.5MB downlink and 128KB
  uplink bandwidth. In addition, PNCC introduced
  domestic broadband applications including the use
  of ISDN and ADSL technologies. These
  technologies would provide remote schools and
  medical clinics with distance learning and
  telemedicine capabilities.
• Value Added Services The new switching system
  enables PNCC to offer a full range of tariffed
  custom calling features such as call waiting,
  call forwarding, Caller ID, and speed dialing.
  PNCC also plans to offer ISDN services, voice
  mail, multi-distinctive ringing, automatic
  redial, account and authorization codes,
  automatic callback and much more.

9
Future Development in Palau

• PNCCs effectiveness is challenged in many
  different ways. Significant and rapid changes in
  technology coupled with the removal or revision
  of traditional industry practices has had a
  profound effect on our ability to make capital
  improvements, to maintain our network, and to
  offer modern yet affordable services. For
  example
• Our services must be more cost reflective and
  must factor in todays global changes (i.e, the
  impact of refilling, callback, and forced
  reductions in the settlement rates). In the past
  we may have subsidized local service rates in
  attempts to offer affordable universal service,
  however, these global changes are pressuring us
  into re-balancing our tariffs. Determining a
  reasonable level of re-balancing versus domestic
  spending capacity will be challenging to say the
  least.
• Todays technology is electronic, software
  driven, and constantly changing. Migrating from
  our old antiquated network to a complex network
  with a myriad of sophisticated systems is
  requiring a substantial and continuous investment
  in re-training and education.
• To say connected to the global network and to
  meet new service demands we must consider
  frequent enhancements and upgrades to our
  existing infrastructure.
• PNCC is also considering ways to provide service
  to several distant islands 200 to 350 miles from
  the main body of islands. Population is less
  than 50 on each island but there is potential for
  growth as each island has their own economic
  development plans. PNCC is assessing the
  feasibility of various technologies such as HF
  radio, GMPCS, and Vsat satellite.
• Further, PNCC is considering the use of Vsat
  satellite technology in a DAMA type application
  to provide redundancy on Palaus international
  connection and to be more cost efficient on its
  international thin routes. In addition, PNCC
  is currently participating in several
  international consortiums involving proposed
  cable routes. As mentioned earlier, PNCCs
  international connection is via satellite
  utilizing a single earth station in Palau so
  redundancy and diversity are critical planning
  issues. PNCC has made a sizable investment and
  effort to modernize Palaus telecommunications
  network however, as with all telecommunications
  carriers, network development is continuous
  process.

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Thank you Very Much!!