Papua New Guinea (PNG) has a population of 6.3m of which an estimated 37% live below the poverty line. The national economy is based on natural resources, primarily gold, petroleum, copper, coffee, palm oil and timber. Basic services such as education and healthcare are lacking, particularly in rural areas. Access to internet and mobile telephony services and equipment is very limited. Internet penetration is one of the lowest in the world at only 2% of the population. This lack of access to infrastructure and communication technology severely restricts the ability of PNG’s people to participate in the local and global economy.

Data Nets is one of the four companies in PNG which provides internet access and solutions to local businesses. Expanding its service will allow more of the population to benefit from the opportunities afforded by internet connectivity: new markets, information and contacts. It was the first company in the Pacific to make e-commerce in local currency available. Data Nets has also established wireless networks across Port Moresby, the capital of PNG.

With investment from CDC’s fund manager Aureos, Data Nets is currently expanding its services to include disaster recovery, internet hotspots, home wireless products and controlled internet access at schools. The internet connectivity for schools is expected to be provided at cost, as Data Net’s CEO views internet access for the young as a vital element in PNG’s development.

Data Nets currently employs 60 staff members, and provides indirect employment for many more through eight outsourcing centres. Data Nets provides high level training to its employees and for those who work for outsourced centres.

CDC’s fund manager Aureos contributed to the growth and development of Data Nets by assisting in the establishment of better audit and remuneration practices.  Aureos also supported management by analysing new ventures and contact opportunities within the Pacific basin.

Data Nets is expanding its operations to other countries in the Pacific. In April 2009, it acquired a shareholding in a Fijian based broadband provider. Data Nets is also looking to establish operations in the Solomon Islands, a nation with a very low internet penetration rate of 1.4%. The continued expansion of Data Nets is expected to increase the numbers of businesses and individuals with internet connectivity.