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Telecom operators express support for liberalisation

Telecom operators providing domestic fixed line and mobile telephony services in Sri Lanka have deemed it necessary to clarify their position regarding the impending liberalisation of international services in the wake of recent media reports which could potentially misconstrue their position in the eyes of the consumers and public.

In a news release, operators expressed their support for the liberalisation of the international sector and the introduction of multiple gateway operators and thereby, the reduction of prices to consumers for international calls through the forces of competition and maximised choice. Customers of telecom operators would themselves benefit from the impending liberalisation, they said.

"As such, telecom operators recognise the proposed regime as a progressive and forward thinking step in the direction of placing Sri Lanka's telecom market among the most dynamic in the region. The operators have and will commit their fullest support to the fulfilment of the Government of Sri Lanka's vision in this respect," the release said.

The misconception that the operators are opposed to liberalisation, as reported in the media, appears to have risen following the operators expressing concern with regard to certain elements of the policy. These concerns are primarily with respect to the reduction of rates levied from overseas operators (not Sri Lankan consumers) for terminating calls (incoming calls) into domestic networks.

The proposed regime would result in the reduction of foreign exchange inflows to the country and compensation received by domestic operators for the use of their infrastructure. Unnecessary reduction of in-payments to Sri Lanka would benefit foreign operators and directly deny the national economy and local operators of substantial revenues which otherwise would help boost the economy and encourage the development of local infrastructure including rural networks.

These and other technical concerns, as expressed to the Telecommunication Regulatory Commission of Sri Lanka (TRCSL), would in no way impact the potential price reductions local consumers would enjoy or the liberalisation policies of the Government, the release said.

Discussions are currently under way between the TRCSL and telecom operators regarding these concerns.

The operators are confident that these discussions will result in a regime which is in line with the Government's vision of a liberalised market, delivering maximised benefits to the consumer, the national economy and the industry.

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