Papua New Guinea's competition watchdog is investigating a multimillion dollar telecommunications deal between Papua New Guinea's state owned Telikom and foreign investors.

PNG correspondent, Steve Marshall, reports that PNG Telikom has agreed to sell 50 per cent of its ailing mobile phone business to foreign investors for around $US50 million.

The country's Independent Consumer and Competition Commission is seeking more information before allowing the transfer of Telikom's public mobile services.

Black Dolphin Limited and Capital Way Consortium are making the purchase.

The Consortium is made up of several investors including General Enterprises Management, GEMS.

The ICCC is concerned that GEMS, which lists former US secretary of state Henry Kissinger as an advisor, is a shareholder in another PNG mobile phone company.

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