"A 3G license gives mobile users flexibility and portability, allowing one to do more on the move," says Ratwatte.
"One could make and receive video calls, emails, high-speed internet connections for web browsing with 3G technology."
Ratwatte says the TRC has fixed the license fee at 5-million dollars. "Operators have two weeks to respond and we hope to give the licenses within a month thereafter."
With over 3.5 million subscribers, Sri Lanka's four-horse mobile market is shared between Dialog Telekom, Mobitel Lanka, Celltel Lanka and Hutchison.
Dialog Telekom, a unit of Telekom Malaysia, is currently the biggest of the four, commanding around 60 percent of the cellular market.
The firm, which is also the biggest listed stock on the Colombo Stock Exchange, inked a 150 million dollar two-year plan last week to grow its mobile and broadband business in Sri Lanka.
Dialog is currently offering 3G test runs and hopes to offer high speed internet access on mobile phones later this year.
In other countries, operators paid high fees after auctions.
This slowed down rollout so much that countries like Hong Kong and Denmark designed their auctions to reduce the fees that would be paid.
The previous highest fee paid by LK operators was around USD 1 million, when 1800 MHz frequencies were issued through an auction.
Here, the money was intended to be used to clear the frequency band (to compensate the previous occupants).
The urgent need is for greater investment in the sector.
There has to be a very strong rationale to pull money out of the sector and put into the Consolidated Fund.
The government gets a lot of money from the sector through VAT and levies.
The sector drives the country's economic growth.
It should be careful about harassing the goose that lays the golden eggs.
All Rights Reserved.