Finance Ministry has confirmed it will pay 109-million dollars in compensation to Solomon Telekom instead of the previously announced 84-million dollars.
A statement from the Prime Minister's Office says the new compensation amount is a result of recent calculations on losses that the telecommunications company will incur on fixed line networks outside of Honiara.The calculations are provided for in the Settlement Scheme recently signed by Our Telekom and the national government.
The Economic Reform Unit says the new settlement amounts is fitting and makes sense.
The Unit says Our Telekom company has the option to shut down fixed lines outside of Honiara once competition is introduced in the market.
Meanwhile, the national government has agreed to fund the fixed-line losses that Our Telekom expects to incur over the next five years.
The losses amount to a total of over 20-million dollars.
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