Vanuatu's Minister for Public Utilities, Edward Natapei, has criticised the level of online services provided by Telecom Vanuatu Limited.
Mr Natapei is standing by the government's decision to issue a license for Pacific Data Solutions Limited, or PDS, to provide telecommunication services in Vanuatu.
TVL, which controls all telecom services in Vanuatu and is one third-owned by the government, has expressed disappointment at the government's move and says it plans to appeal a Supreme Court decision which upheld the government's action.
But Mr Natapei says they don't see any problem with PDS establishing its services, mainly for online gamblers, because TVL is not providing adequate enough service.
"The service that they are providing to our people keeps coming off line for long periods. They need to improve that, to bring it up to standard before they're in a position to say that they could provide the same service that PDS is trying to provide to their own clients."