Members of Fiji Bus Operators Association, Land Transport Authority chief executive officer, Naisa Tuinaceva (back to camera) outside Prime Minister office yesterday. Photo: RONALD KUMAR.
Some bus companies call for open market as another two-week extension to compliance announced
By RANOBA BAOA and JYOTI PRATIBHA
The Commerce Commission has written to the Attorney-General Aiyaz Sayed-Khaiyum over the e-ticketing saga whichcausing some division in the bus industry.
It is understood that the commission has expressed concern over possible non-competitive and discriminatory aspects of how e-ticketing is being introduced by the Land Transport Authority. This is being done through a partnership involving Foneology (front end) and Vodafone (back end).
It is understood the commission has suggested a two-month delay in the compulsory introduction of e-ticketing to sort out the issue.
On the eve of the deadline for compliance two Suva bus companies, Tebara and Shore, were challenging the Land Transport Authority’s preference for the Foneology-Vodafone solution. Tebara has said it has what it calls a cheaper solution for bus companies readily available.
Chair of the commission Dr Mahendra Reddy yesterday confirmed that he wrote to Mr Sayed-Khaiyum last Saturday and again yesterday, but declined to say what he said.
“I have written to the Attorney-General and the Minister for Transport. In fact I wrote another letter to him today,” Dr Reddy said.
“I am trying my best to resolve the issues regarding the e-ticketing and it would not be prudent to reveal the discussions to media as yet.”
Mr Sayed-Khaiyum was not immediately available for comment.
However, yesterday Transport Permanent Secretary Francis Kean announced a further two-week delay in compulsory use of e-ticketing.
Enforcement to forge
In an interview with Sun Business, Land Transport Authority chief executive officer Naisa Tuinaceva said:
“We worked through a full transparent expression of interest process to engage with solution providers.
“We have done the right thing, we have followed the process. It was open to the market. We did that. And we got the five solution providers that have been accredited by the authority, unfortunately you cannot open this forever.”
Mr Tuinaceva said they had taken into account competition in their introduction of the whole process.
This comes as a written request to the Prime Minister and the Attorney-General – said to have the support of 28 bus companies – seeks an open market for the e-ticketing solution providers and solution networks.
The request claims that the fees charged by the current providers Foneology/Vodafone Fiji are too high for some companies to carry and there are less expensive alternatives.
It was noted that some bus companies have up to 90 buses in their fleet.
The letter also goes on to say that while they fully support Government’s initiative of the e-ticketing system, fair competition should be provided and not just stick to one provider.
Only revenue is bus fare
Tebara Transport Limited owner Arvin Maharaj said: “The only source of revenue for our industry is bus fare and for us not to have a say in the product that will collect and distribute this very and only source of income will be suicidal and catastrophic for us.
“All we are asking from Government is to allow us to use the product and e-ticketing provider that we want and not to force us to use services of any other particular network provider.
“This is totally against the norms of good competition policy the country wishes to forge ahead with.”
Solution provider, Foneology director James Trusler said: “All I can say really, is we’ve got 57 bus companies using our console at the moment and no one has actually expressed their concern directly to me.
“I don’t think it has anything to do with the pricing but I personally think now, they’re not supporting e-ticketing I would say.”
On negotiating for lower pricing Mr Trusler said: “Well like I said, 57 bus companies are using our machines so I don’t see an issue with them.”
When this page went to press last night, Vodafone had not yet replied to a written request for comment.
Binding agreements
Flying Prince Transport Company Limited operator of the Vatukoula Express Satendra Prasad said:
“We want a system that is beneficial to all parties.”
Mr Prasad said they currently do not have binding agreements.
“This will tell us what are the terms and conditions so that our lawyers and accountants are aware of it and from there we can be able to gauge whether it is good for our company or not.
“What happens after six months if the agreement finishes? To renew we might have to pay additional costs and that is not acceptable.”
Compliance extension
Meanwhile, the Ministry of Transport said bus companies now have until midnight on the 17th of May to make sure that all of their buses have e-ticketing machines installed.
The Permanent Secretary, Francis Kean, said that this decision was taken after a meeting with the Fiji Bus Operators Association yesterday morning.
“The ministry is here to work together with the bus operators and the FBOA, and overall we have been extremely pleased with the way the industry has worked to implement this new system,” he said.
“The overwhelming majority of operators have reacted very positively to e-ticketing, and so we were willing to give an extension in order to allow those who were not yet in full compliance a little more time.”
57 of the nation’s 59 bus companies are said to be already in full or in partial compliance.