The Solomon Islands government says it's opening up the country's telecommunications industry to competition in a bid to reduce the high cost of mobile phone and other services.

The prime minister, Derek Sikua, says he's ending the 15-year monopoly held by Solomon Telekom to allow new operators to invest in the country.

He says the state-owned carrier's exclusive licence will not be renewed when it expires later this year.

Britain's Cable & Wireless has a one third stake in the joint venture.

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