Phone Charges

July 10, 2007 (LBO) – Sri Lanka Telecom has said it plans to switch to a time-based tariff structure from a unit-based one as part of a court settlement in which it will cut call charges. The case will be called again on August 27.

In a telecom operator revenues are usually made up of call charges, rentals and connection fees. SLT, the island’s largest fixed access provider, said in a statement the supreme court has directed the Telecommunications Regulatory Commission (TRC) to facilitate further negotiations between SLT and the Consumer Association of Sri Lanka

The consumer association, a lobby group, took SLT to court seeking lower call charges.

“On the direction of the court, SLT has already forwarded five proposals to the TRC in order to effect a tariff reduction, switching from a unit-based tariff structure to time-based tariff structure.

When matter was called in court on Monday, the TRC forwarded its observations to court on one of SLT’s proposals and the parties agreed to a tariff revision with a revenue reduction.

Under the plan, SLT’s domestic telephone revenues are to be cut by 8.72 percent.

“This guideline in relation to revenue reduction will