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| Wednesday, 22 October 2003 |
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No TRC legislation to prevent acquisition By Chamitha Kuruppu Despite several protests by telecom operator companies, Sri Lanka Telecom (SLT) will go ahead with the controversial acquisition of Lanka Bell Limited. Since the Telecom Regulatory Commission (TRC) is helpless in preventing acquisition due to lack of necessary legislation the deal is most likely to go ahead as proposed, Secretary to the Ministry of Mass Communication Kumar Abeysinghe told the Daily News yesterday. The TRC is not in a position to stop SLT buying Lanka Bell as no existing law can prevent a company buying shares of another, Abeysinghe said. We have learnt that several telecom operator companies have shown concern over the proposed deal but due to a mere complaint TRC cannot stop the deal, he said. " If the two companies want to form a strategic alliance, why should the TRC get involved in it," he queried. Abeysinghe said that if the acquisition creates any anti-competitive practice the TRC will get involved directly. There are laws to prevent anti-competition practices, therefore in such a situation the TRC will take measures to protect other operators, he said. TRC Director General Themiya Hurulle who is out of the country at present is to 'take up the issue' when he returns on Friday, TRC sources said. The media last week reported that five telecom operators including mobile and wireless local loop have voiced their protest to the TRC over SLT acquiring Lanka Bell. "After its breakneck transformation of Sri Lanka's telecom sector over the past 18 months, Sri Lanka is now in the era of high expectations; huge growth and discerning subscribers have been nothing short of mind-boggling with over 40 EGO licences. As anyone who has experienced the past can attest, placing a simple local phone even in one of the more developed cities used to be a frustrating ordeal. The telecom policy makers must prevent the change of a return to that era," the operators have stressed in the letter to the TRC. "Unless the government acts to prevent yet another monopoly taking shape, independence of the regulator will remain an elusive goal," the letter said. |
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