LIRNEasia was the only non-Indian entity that sent responses to the TRAI consultation paper no. 2/2008 dated 21st January 2008 on Access Deficit Charge (ADC).

Here, as the response to the first question LIRNEasia said

We agree with phasing out of the ADC. Our work on the subject in 2004-05 led us to advocate this same position by questioning if the ADC was merely ‘a politically motivated tax on private operators to protect the incumbent, its employees and its copper-wire access network during a very long transition to competition.’ 1 Today, in 2008, the need for the phasing out the ADC is much greater as there is no need for every new mobile customer getting connected to a network; who is more rural and less affluent, subsidizing a legacy wireline customer; who by virtue of having got connected early on is less rural and more affluent.

LIRNEasia lead economist Harsha de Silva also gives a critical analysis of the Indian experience on ADC in his book chapter in LIRNEasia’s new book ICT INFRASTRUCTURE IN EMERGING ASIA.

Click here to download the TRAI news release

Click here to download the responses to the TRAI Consultation Paper

Click here to view the chapter on ADC in LIRNEasia new book

Find the draft background paper here

Find the presentation slides here

LIRNEasia’s research evidence from the T@BOP study played an important role in pointing out the likely adverse effect of the proposed regressive tax on the mobile users at the “Bottom of the Pyramid”.

The following are the articles/discussions on this topic.

• Sri Lanka plans to tax mobiles more heavily

• Taxing Sri Lanka’s mobile customers; Goose or eggs?

• Sri Lanka drops unfair mobile phone tax, slaps higher usage tax

The following is an extract of the The Parliament of Sri Lanka’s Hansard on Mobile Taxation Issue on 6th September 2007.

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Translation: We will be pleased if Hon. Minister removes the regressive tax of LKR 50 as pointed out by Prof. Rohan Samarajiva, Dr. Harsha de SIlva of LIRNEasia and UNP Members. We also request not to increase the mobile subscriber levy to 10%. This tax will have an adverse effect on the common man.

Sri Lankan mobile users and service providers can be optimistic about MNP. It has resulted in better rates even in countries which had lower rates than ours before MNP. It will result in an overall improvement of the quality of services. If the operators are providing a good service for their customers, they can retain their customer base. If implemented properly, MNP can change the lives of 7 million Sri Lankans for the better.

A five minute cut on the discussion, where Professor Yunus discusses how a “digital genie” will appear from the “Aladdin’s lamp” [the mobile phone] to empower the poor, has been linked below.

In a press conference held yesterday to announce South Asia’s first Broadband Communications Congress and Expo (SABCCE) General Manager/ Head of Consumer Market Development Division of Sri Lanka Telecom SLT M.Z Saleem said CDMA Broadband technology will be introduced to the local market by SLT soon.

Most of the service providers in the local telecommunication industry are in the process of introducing this technology to the market. However the equipment needs higher investments for introducing this technology,
he said.

‘Broadband communications are very cost effective. It provides high-speed data transformation to the users, he said. The SABCCE will be held from September 4 to 6 in Colombo. The SABCCE will establish ties between decision makers of broadband industry in the region and provide the forum for sharing information and experiences.

Executive Director of Lirneasia Prof. Rohan Samarajiva said broadband communications are important for the country’s economy. These technologies will help businesses to be much more competitive in the market.
‘When using broadband communications people face technical problems and regulatory problems. SABCCE will provide the platform to discuss and share knowledge among the countries in the region on using broadband communications.
We need to have these type of congress in Sri Lanka, he said.

Financial Times – Daily Mirror – 09-June-2007

The telecom industry will be ensured with a mobile number portability that is expected to result in more growth, Posts and Telecommunications Minister Rauff Hakeem said yesterday.

It was observed that the government was currently involved in conducting discussions in a bid to tackle this issue. In this respect, Hakeem pointed out that they will be able to ensure affordable services but the government will try to resolve the issues on hand.

The minister addressing the Sri Lanka Economic Summit 2007 yesterday on the concluding day highlighted that this would provide with a more level playing field especially for the smaller and newer operators.
Pointing out the challenges ahead, he noted that it was the aim of the government to ensure affordable service to all parts of the country, opening a multitude of opportunities especially in the rural areas.

Fully aware of the bottlenecks faced by the operators, Hakeem stated that he will take it on to ensure there would be the establishment of policy for the approvals for the erection of base stations.

In addition, he pointed out that there is an increased growth in the mobile telecom industry although penetration is at a low presently; there is possibility of ensuring a 50% penetration by the end of 2007 and 75% in 2008.