Sri Lankan government removes floor rates for call charges to assist the industry expand its market share
The government of Sri Lanka has reportedly removed floor rates for call charges in a bid to promote cost optimization and assist the industry to expand their market share.
The move is targeted at bringing more benefit to telecom users as well as companies, Telecom and Digital Infrastructure Minister of Sri Lanka, Harin Fernando has told Daily FT.
The Daily FT has reported that letters informing of the changes were sent to all the operators by the Telecom Regulatory Commission (TRC) last week.
According to Fernando, the move will result in cost optimization and allow more competition.
“The floor rates were implemented in 2010 to help the large operators. The new move will ensure cost optimization by operators and will give hope for small operators,” the Minister has said.
The move comes as new Finance Bill amendments proposed to slap more taxes on the industry, reports state.
If approved by Parliament, the amendment will charge a levy of Rs. 200,000 per annum for each tower from 1st of January 2019 for all mobile telephone operators who own cellular towers compared to the previously proposed Rs. 200,000 per month charge.
OSL take:
The Sri Lankan government’s move to take measures to promote cost optimization and assist the industry to expand their market share would result in the opening up of many investment opportunities in the country’s telecommunications sector. The reduction of tower charges would also further help boost the country’s telecommunications sector. Foreign companies engaged in the telecommunications and digital infrastructure could explore for business opportunities in Sri Lanka.
| Article Code : | VBS/AT/27082018/Z_1 |