A news report published in the Papua New Guinea Post Courier on Wednesday said that Digicel, just four days after launching its services, was asked by PANGTEL to immediately cease operations in the country. According to the report, the government agency cited that "...due to amendments to the Information, Communication and Technologies policy, Digicel's licence was null and void".

Digicel's two cheques for the payment of the licences were sent back.
However, the Caribbean-based telecom giant said that it has successfully sought out a court order to restrain the authorities from carrying out its revocation. In a press release, Digicel announced that it had obtained a National Court injunction on Tuesday to prevent PANGTEL's action.

"What PANGTEL has done is illegal," said Seamus Lynch, Digicel group board director. "I met with the Prime Minister Grand Chief Sir Michael Somare in early March 2007, and he personally gave us the reassurance that our investment and licence to operate in this country was protected.
"The actions of PANGTEL (on Tuesday) appear to be very politically motivated. We have the full support of the ICCC. It is business as usual for Digicel," he added.

According to the report in the Papua New Guinea Post Courier, PANGTEL, in a letter dated July 20, one day before Digicel launched its services in the country, advised the firm that its interim Spectrum licence had been withdrawn and warned it had to stop all operations. PANGTEL warned Digicel that if it failed to seize operating, the agency may pull down the company's satellite towers.
As published in the report, PANGTEL, in its letter to Digicel issued the following warnings:

. DIGICEL should not use the spectrum licence as of now on;
. DIGICEL should stop erecting, maintaining and operating stations and radiocommunications apparatus and
. DIGICEL stop further installation as of the date of this letter and submit the present status of its network rollout and total number of base stations installed.

Indeed Digicel has not been spared the wrath of the authorities in the southwestern Pacific nation, as it was also reported that the company faced "...hefty fines for allegedly by-passing procedures and laws concerning advertisement billboards and banners in public areas".
The country's energy regulators, PNG Power Limited (PPL), described as "stupid and foolish", Digicel's action of putting up banners on power poles in the nation's capital, Port Moresby. According to the report, Digicel "...went on an advertisement frenzy to capture public excitement" before being launched.

Last week, in its fiscal fourth quarter report Digicel posted revenue which exceeded expectations, despite the firm's faster-than-expected sub-growth (higher subscriber acquisition costs). Fourth-quarter revenues were US$347 million for the group (US$276 million for the restricted group), which exceeded the company's US$312 million guidance (US$240 million for the restricted group).
As of March 31, 2007, the company had 4.7 million subscribers.

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