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A proposed rural telecom fund for network development will not be set up, instead monies coming from overseas call operations will be held by the industry watchdog.









A proposed rural telecom fund for network development will not be set up, instead monies coming from overseas call operations will be held by the industry watchdog. The Vishwa Grama Fund (VGF) to hold 3.



8 US cents, of 11 US cents external gateway operators were to cough up for terminating international calls on local networks.

Regulatory officials told Lanka Business Online on Monday that a decision has been made not to set up the fund, instead to divert the monies to the Telecommunications Regulatory Commission (TRC).

A policy paper introducing the new model is expected from the Minister of Telecom before end September.

The fresh regulations will allow the TRC to manage the fund and make it available for rural infrastructure roll out on a “to be determined” formula that will be based on the number of people serviced and the capacity for expansion.

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Likely options include a lease cost subside, where the operator calling for the lowest state assistance will get access to the funds.