The ICT Agency won a first round battle in the District courts, but a parallel Appeals Court case and a subsequent appeal on the District court ruling are up for hearing in May and June 2006.
The two regional telecom licenses, one for the North and East and the other for the deep South of the Island, were part of an overall strategy to connect backwater Sri Lanka to the rest of the world and to take ‘so far Colombo based’ citizen service to the districts.
The ICT Agency’s Programme Director, Information Infrastructure Reshan Dewapura said ICTA was in talks with the seven telco’s for an early settlement, as operator concerns over the licenses was delaying implementation of the e-Sri Lanka initiative.
“Connectivity in the North and East and the South are underlying components needed to fully implement the e-Sri Lanka initiative…”
Dewapura added that “we have proposed the two methodologies to the operators and hope to have a meeting with all the operators to come to a final agreement.”
Other concerns from the operators include claims that the regional telecom license awarded on a least cost subsidy model, gives the successful bidder a five-year monopoly to operate a wireless local loop network in the deep-south and north and east zones.
Another claim is that tariff approvals will not apply to regional telecom networks, allowing the regional licensee to set call charges below the current average rate of Rs. 2.00 (estimate based on call rates published by Sri Lanka Telecom, Lanka Bell and Suntel - applicable between peak and off-peak hours).
Operators have also raised other issues related to the licensing, including telephone number allocations and interconnection with existing operators if the regional licenses are issued to a newcomer.
Dewapura said the two new proposals to entire issue data only licenses or put together a consortium to invest in an internet backbone would overcome most of the concerns of the industry.
The World Bank’s International Development Agency is backing Sri Lanka’s e-Sri Lanka initiative with US$ 80 million and comes under the purview of the Sri Lankan President.
Parts of the funding from the International Development Association have been proposed for subsidies to the two networks operating in the north and east and the deep south region.
-Shafraz Farook: shafrazf@vanguardlanka.com
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