Source: FIJI BUS OPERATORS
ASSOCIATION
The Fiji Bus Operators Association believes it is necessary to clarify many of the issues that have emerged in the media in the past few days regarding the operation of the electronic ticketing system.
At the outset, it would help to give the issues some context by briefly explaining the history of the e-ticketing project, which is one of the biggest and most positive changes the transportation sector has gone through in Fiji’s modern history.
Discussions among bus industry members, government, regulators and potential suppliers began in 2010.
Expressions of interest
The Land Transport Authority then advertised calling for expressions of interest to set up an e-ticketing system.
It was an open-tender process and applications were carefully evaluated in a transparent manner.
Digicel Fiji was not one of those who expressed interest in the beginning.
By November 2011, Telecom Fiji Limited was granted the first opportunity to launch a pilot e-ticketing project for select schools in the central/eastern division with Tacirua Transport Company Limited.
Bus fare programme
Under the pilot scheme, students on the Bus Fare Assistance Program would be given a personalised TFL Yehdo! Bus card with the child’s name, school and address.
Of the 53 paid up members of the FBOA, only two bus companies openly opposed the TFL’s e-ticketing system: Tebara Transport Limited and Shore Buses, the same two companies now agitating for a disruption to the successful implementation of the e-ticketing project based on claims that the joint Foneology-Vodafone Fiji system is “anti-competitive and discriminatory”.
Why is it that on the eve of a milestone achievement these two companies are again opposing the implementation of a system that aims to make the industry more accountable and transparent?
Transparent process
Transparency in the ticketing system will benefit all operators in the long run, with direct revenue collection for companies.
We feel that Tebara and Shore Buses are confused about what it is they really want: when we were exploring the TFL system, they opposed it.
When we began using the Vodafone/Foneology system, they approached TFL again. Later they approached another company before finally supporting Digicel in its attempt to provide a system.
Tebara and Shore operators
It should be pointed out that both Tebara and Shore Buses have not tried the Foneology/Vodafone system. They never at any point in time offered an alternative to the systems they criticised – only now when we are ready to roll out are they coming up with supposed options.
Tebara Transport Limited itself is an accredited supplier of e-ticketing consoles but nine months have passed and nothing has been achieved on their part.
Interestingly, when the TFL pilot failed, the FBOA had approached Digicel Fiji and asked the company if it would develop an e-ticketing system for the industry.
FBOA officials met with Trevor Elliot of Digicel but the company showed very little interest in a potential e-ticketing system.
Association gauges proposal
Only then did the FBOA look closely at the joint proposal by Foneology and Vodafone Fiji. The FBOA was looking for a system that could function not simply as a fare-collecting system but a complete bus company management solution.
Foneology provided the front-end while Vodafone provided the back-end technology for a solution the industry found was most suitable for its long-term needs and achieved its aims.
At the Annual General Meeting of 19 May 2012, the members were asked to vote on a resolution agreeing to work with Foneology and Vodafone to implement the e-ticketing system.
The resolution was agreed to and only after that was a special meeting called for the signing of an MOU between the FBOA and Foneology/Vodafone.
The beginning
On 21 August 2012, a letter was sent to the Prime Minister’s Office containing the signatures of 50 bus operators who supported the Foneology/Vodafone bid, an absolute majority of the bus industry.
Also, contrary to claims in the newspapers that the fees charged by Vodafone for their system is too high, it is in fact lower than the TFL system.
On the claims of anti-competitive behaviour that the Commerce Commission of Fiji now appears interested in, we would like to point out that the Commission never took issue when TFL was initially given the monopoly on the e-ticketing system (something TFL was not able to capitalise on).
Now that two more weeks have been given for the bus industry to fully comply, and implementation is well on track, the issue of anti-competitive behaviour is being raised.
Commerce Commission’s role
Yes, it is the Commerce Commission’s role to protect consumers from anti-competitive practices, but how is it in the public interest if the e-ticketing system is halted now?
Whose interests is the Commission supposed to be protecting: the consumers or the handful of bus operators who are opposing the Foneology/Vodafone system?
In March, Commerce Commission chairman Dr Mahendra Reddy and the permanent secretary for Works, Transport and Public Utilities Commander Francis Kean released a joint statement which acknowledged that the e-ticketing system was independent of any mobile phone company.
Vodafone
The statement agreed that people who were not Vodafone customers would not be disadvantaged by the system and in fact customers do not even have to own any mobile phone to use the e-card.
About 250,000 bus fare e-cards have been issued to the public by Vodafone with cash value on them.
In addition, about 30,000 free e-cards are being issued to senior citizens and people with disabilities.
Also, some 100,000 student e-cards are now ready to be issued to school children whose travel is subsidised by government.
It is not hard to see how a disruption to the e-ticketing roll-out now – with millions of dollars already committed to the system – could throw the transportation sector into chaos.
The FBOA is of the view that it is too late for Digicel to now want to get in on the game when the game is virtually over because of the huge financial and technological outlay involved in the implementing e-ticketing system.
We certainly would consider Digicel’s proposal at the appropriate time – once the agreement with Foneology/Vodafone has expired.
We hope good sense prevails and the e-ticketing system is rolled-out successfully on 18 May 2013 without further delay.
The majority of the bus operators currently using the system consider it a viable and workable solution.
FBOA is committed to this e-ticketing project and we will continue to work with government and all stakeholders to ensure it is successfully rolled out.