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Telecom and reduction of tariffs

The Telecommunication Regulatory Authority (TRC) Chairman Kanchana Ratwatte should be lauded for his bold step in directing the Sri Lanka Telecom (SLT) to immediately reduce its tariffs on CDMA (Cord Division Multiple Accesses) phones.

The whole purpose of CDMA technology was to provide low cost services to subscribers who are already reeling under hyper-inflated telephone bills.

If there was one area where the former PA regime achieved unqualified success it is with regard to its development of the telecommunication sector.

The telephone which was at one time out of the reach of the ordinary man was made accessible to all so much so even humble homes today can boast of this most vital accessory.

This is apart from vast strides made in the development of telecommunication infrastructure not to mention the many players that entered the field.

It is therefore incumbent on the present Government to ensure all its past efforts are not torpedoed by the actions of the SLT monolith which today arbitrarily jack up their rates without a thought for the average consumer.

It has been pointed out that the two CDMA operators, both Lanka Bell and Suntel, are marketing their phones for around Rs.10,000 while the SLT is selling their phones for Rs. 18,000.

In addition installation costs of the SLT too far outstrip the other two operators defeating the whole purpose of introducing CDMA technology to make the telephone more affordable to the average citizen.

The TRC argues that the per-line costs and operating costs are on the decline and that these benefits must be passed on to the consumer partly or entirely. It has also observed that SLT tariffs are comparatively higher than the other operators using the CDMA technology considering that CDMA technology is used to by-pass the extensive copper network and that the services are not premium services.

Moreover the SLT has failed to carry out the instructions given by the TRC to review its tariffs in line with the other operators.

The SLT for its part says that it is burdened with heavy taxes and high costs hence the enhanced charges.

The SLT should be coaxed by the TRC to fall in line with its directive failing which some punitive action should be contemplated under the powers vested in it lest the benefits that were intended to accrue to the consumer through the development of the telecom sector go by default.

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