Our Telekom

Our Telekom: Pioneering Digital Finance in Solomon Islands

Solomon Telekom Company Limited, widely known as Our Telekom, stands as the leading telecommunications operator in the Solomon Islands. Established in 1988, this joint-venture entity has consistently provided essential connectivity across the archipelago, from bustling urban centers to remote rural communities. Its ownership structure is predominantly local, with the Solomon Islands National Provident Fund (SINPF) holding a substantial 97.32% stake, alongside the Investment Corporation of the Solomon Islands (ICSI) with 2.68%. This strong local foundation underscores its commitment to national development and service.

Traditionally, Our Telekom's business model focused on comprehensive telecommunication services, including mobile (2G, 3G, and 4G LTE), fixed-line, broadband (VDSL, GPON, FTTP), IPTV, and enterprise WAN solutions. However, recognizing the critical need for expanded financial access within the country, Our Telekom made a significant strategic move in June 2023. It launched M-SELEN, a mobile-money platform designed to bridge the financial inclusion gap, particularly for the unbanked and under-banked populations as well as small and medium-sized enterprises across all provinces.

M-SELEN represents a pivotal expansion of Our Telekom's role beyond mere communication. By leveraging its extensive nationwide network and established customer base of over 400,000 mobile subscribers, which accounts for approximately 57% of the nation's population, Our Telekom is positioned to deliver basic but crucial financial services directly to the palms of its users. This initiative aligns with broader national financial inclusion strategies and signals a future where digital transactions become a cornerstone of daily life in the Solomon Islands.

M-SELEN: Current Digital Wallet Services and Tariffs

While the M-SELEN platform's roadmap includes "Loans" as an eagerly anticipated future feature, it is important for potential users to understand that personal or business loan products are not currently available. The platform's initial focus is on foundational mobile-money services, which are already making a significant impact on daily transactions for many Solomon Islanders. These services are designed to be accessible and straightforward, catering to a diverse user base.

The core services offered by M-SELEN include:

• Cash In/Deposit: Users can deposit physical cash into their M-SELEN wallet at any authorized agent outlet located nationwide.
• Cash Out/Withdrawal: Funds can be withdrawn as cash from an M-SELEN wallet at any participating agent location.
• Send Money: Facilitates convenient peer-to-peer transfers within the Solomon Islands, allowing users to send money to other M-SELEN account holders instantly.
• Mobile Top-Up: Enables quick purchase of airtime for any Our Telekom mobile number directly from the M-SELEN wallet.
• Bill Payments: This feature is slated to expand soon, with utility bills (electricity, water, television) expected to be integrated, offering a streamlined payment experience.
• International Remittances: M-SELEN allows users to receive remittances from abroad directly into their mobile wallet, a vital service for families relying on overseas income.
• Balance Query: Users can easily check their current wallet balance via the mobile app or through the USSD code.
• Mini Statement: A summary of recent transaction history is available through the mobile application, helping users track their spending and receipts.

Regarding tariffs and rates, transparency is key. M-SELEN applies specific fees for certain transactions:

• Cash-in fee: A nominal charge of 0.5% of the transacted amount, with a minimum fee of SI$0.50.
• Cash-out fee: A flat fee of SI$1.00 per transaction.
• Peer transfer fee: A minimal charge of SI$0.50 per transaction for sending money to another M-SELEN user.
• International remittance fee: This varies, typically ranging from 1.5% to 3% depending on the specific international corridor and the equivalent United States Dollar amount.

It is important for customers to note that exact fees may vary, and real-time charges are generally viewable within the M-SELEN app or during USSD transactions. For registration and onboarding, Our Telekom requires valid government-issued identification, such as a passport or national ID, to be presented at an Our Telekom retail office or authorized agent. This basic identity verification ensures secure and real-name registration, although advanced credit scoring and collateral requirements are not applicable as credit products are not yet launched.

Navigating Our Telekom's Digital Platform: App, USSD, and Reach

Our Telekom has ensured that its M-SELEN mobile-money platform is accessible through various channels, catering to the diverse technological landscape present in the Solomon Islands. This multi-channel approach is crucial for widespread adoption, particularly in areas where smartphone penetration might still be developing.

For smartphone users, the M-SELEN mobile app is available for download on both iOS (Apple App Store) and Android (Google Play Store) devices. The app offers a user-friendly interface with several core features designed to enhance the digital wallet experience. These include a comprehensive wallet dashboard that provides an overview of funds, direct peer-to-peer transfer capabilities, a locator tool to find nearby cash-in/cash-out agent outlets, and access to a mini-statement for reviewing recent transaction history. While specific user ratings are subject to change, estimates suggest positive reception, with Android ratings around 4.0 stars and iOS ratings around 4.2 stars, indicating general satisfaction with its ease of use and reliability for basic transactions.

Recognizing that not all residents possess smartphones, Our Telekom has also made M-SELEN services available via a USSD code (*123#). This feature phone compatibility is vital for financial inclusion, allowing users with simpler handsets to access key services like balance checks, money transfers, and mobile top-ups. This dual approach ensures that the service can reach a broader segment of the population, particularly in rural and remote areas where feature phones remain prevalent.

Physical locations also play a critical role in the customer journey. New users can register for M-SELEN accounts at all Our Telekom retail offices and a growing network of agent outlets spread across the country. These physical touchpoints are essential for initial setup, identity verification (Know Your Customer – KYC), and for facilitating cash-in and cash-out transactions, which are fundamental to the mobile-money ecosystem.

Our Telekom's geographic coverage is truly nationwide, encompassing all nine provinces of the Solomon Islands through its extensive GSM and broadband infrastructure. With over 400,000 mobile subscribers, the company possesses a robust existing network that forms the backbone of M-SELEN's reach. This widespread presence allows for effective delivery of digital financial services to a mix of customer demographics, including urban professionals, rural households, and small businesses, with a notable and growing adoption among the youth.

Regulatory Landscape, Market Position, and Competition

Our Telekom operates within a well-defined regulatory framework in the Solomon Islands. As a telecommunications provider, it is licensed and overseen by the Solomon Islands Communications Commission. For its digital financial services, M-SELEN functions under the strategic guidance of the National Financial Inclusion Strategy (2021–2025), a government initiative aimed at expanding financial access across the nation. The Central Bank of the Solomon Islands plays a crucial role in monitoring compliance with digital finance regulations, ensuring consumer protection through measures like PIN security, transaction notifications, and established channels for dispute resolution. To date, there have been no reported regulatory penalties or sanctions against Our Telekom, indicating sound operational adherence.

In the competitive landscape, Our Telekom holds a dominant market share in the mobile telecommunications sector, boasting the largest mobile operator status with approximately 57% of subscriber share. This strong foundation provides a significant advantage for the rollout and adoption of M-SELEN. However, the digital finance space in the Solomon Islands is not without competition. Key competitors include:

• BeMobile (Digicel): Another prominent mobile telecom provider that also offers mobile money services, presenting direct competition in the digital wallet space.
• Ezi Pei (Solomon Post): A mobile-money service offered by the Solomon Islands Post, leveraging its own network of post offices and agents.
• iumiCash: An independent digital wallet provider also vying for market share in the growing digital finance sector.

Our Telekom's primary differentiation lies in its unique position as a long-standing, telecom-backed mobile money provider. It leverages its existing, extensive telecommunications network and a widespread rural agent network, which is critical for reaching underserved populations. Furthermore, Our Telekom has forged important partnerships with entities such as the UNCDF (United Nations Capital Development Fund) and the Australian Government, which provide funding and strategic support for financial inclusion initiatives. Its collaboration with KlickEx for international remittances and Oracle for digital transformation further bolsters its capabilities and service offerings.

The company's growth and expansion plans for M-SELEN are ambitious, focusing on a phased rollout of advanced features. These include the full integration of bill payments, enabling interoperability with traditional bank accounts, and the introduction of savings products. Crucially, as highlighted throughout, the launch of loan products is a significant feature on the M-SELEN roadmap, promising to further deepen its financial inclusion impact. Our Telekom also continues to invest in network upgrades, with 5G trials underway, signaling its commitment to maintaining technological leadership.

Practical Considerations for Future Borrowers and Current Users

For residents of the Solomon Islands considering engagement with Our Telekom's M-SELEN platform, particularly with the anticipated launch of loan products, several practical considerations are important. While loan services are currently under development and not yet available, understanding the existing ecosystem and preparing for future offerings is a prudent approach. Our Telekom's M-SELEN has garnered positive feedback regarding the ease of cash transfers and the overall reliability of its wallet services, indicating a generally favorable customer experience. However, some common complaints include occasional USSD timeouts and agent liquidity issues, which users should be aware of, especially in remote areas.

When loan products eventually launch, potential borrowers should prioritize due diligence. It will be essential to thoroughly understand all terms and conditions, including interest rates, repayment schedules, any associated fees, and the implications of late payments or defaults. Given Our Telekom's focus on financial inclusion for the unbanked and under-banked, it is likely that future loan products will aim to be accessible, but personal responsibility in borrowing remains paramount. Users should only borrow amounts they are confident they can repay within the stipulated timeframe, ensuring that any borrowing supports their financial well-being rather than creating additional burdens.

For current users of M-SELEN, maximizing the utility of existing services is key. The platform offers a reliable channel for sending money to family, topping up mobile credit, and managing daily transactions. Small businesses, in particular, can leverage mobile payments for supply orders and managing their operational cash flow, as evidenced by success stories of rural entrepreneurs utilizing M-SELEN. The ability for seasonal workers to remit wages to their families via M-SELEN also underscores its immediate, tangible benefits.

As Our Telekom continues its expansion, with features like in-app chat planned to complement its 24/7 call center, customer service accessibility is expected to improve. Future developments, including bank-wallet interoperability and savings products, will further enhance the platform's value proposition. It is advisable for all users to stay informed about M-SELEN updates via Our Telekom’s official website and social media channels. Engaging with the platform responsibly, understanding its current capabilities, and preparing for future credit offerings with a clear financial plan will enable users to derive maximum benefit from Our Telekom's evolving digital financial services.