Punaha acknowledged the difficulties of providing reliable internet services in PNG and welcomed the connection of internet service providers to the exchange point, Loop PNG reported.
The opening commemorated World Telecommunication and Information Society Day held May 17.
"The challenge for us in PNG is very harsh," Punaha said.
"Once we acknowledge that [the] cost of rolling out infrastructure services in the country is very high due to the topography foundation, [the] power grid does not extend beyond major centres, and operators have to put up stand by generators and buy fuel.
"Over the last 10 years when [the] market [opened up], there have been achievements, but we still have a long way to go to meet government policy for affordable and reliable internet services in the country."
The exchange point will serve as a common hub which all ISPs will use to send data.
Punaha expressed disappointment, however, that the state-owned telecommunications service provider Telikom had not planned to connect to the exchange point.
He urged Telikom management to come on board as the exchange point would not be effective if one or two major operators were not participating.
PNG Internet Exchange president Keith Anderson said internet cost would drop once all ISPs were connected to the exchange point facility.