The island's eight public switched telephone network (PSTN) operators will now be allowed to appoint a third party to operate and maintain a public phone booth on a revenue sharing model.
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"Its a scheme similar to selling lottery tickets, where the lottery operator does not undertake the burden of running, maintaining and collecting the money," the head of Sri Lanka's telecom watchdog, Kanchana Ratwatte said.
Payphone services are currently offered by three operators who have more than 7,500 booths scattered islandwide serving over 1.
8 million customers, according to Telecommunication Regulatory Commission figures.
Payphone booth locations usually closely mirrors fixed and mobile telephone distribution.
Over half the booths are based in Colombo, with at least 50 percent installed in the cash-rich Western Province, according to official figures.
Despite this concentration, it is common knowledge that some of the payphones in the rural areas give sig