telecommunication Archives — LIRNEasia


Rethinking the regulatory raj

Posted on October 6, 2013  /  3 Comments

The headline suggests the focus is on the capture of regulatory agencies by retired IAS officers. But it is more, a wide-ranging discourse on problems of regulatory governance. It is a pity that the arguments are harmed by sloppy blame attribution: how can TRAI be blamed for spectrum auctions, when the article itself recognizes that is in the province of the Department of Telecommunications? So how do we reverse this capture of important decision-making bodies by the bureaucracy? In 2006, the Planning Commission published a report (Approach to Regulations: Issues and Options) with some suggestions.
Telecommunication Regulatory Commission of Sri Lanka loves SMS. In the pre-election period it requested operators to accommodate a ‘New Year Greeting’ from the President, who apparently was a candidate. Now it warns the users about a false spam SMS. If you have received it don’t worry. Calls from those numbers do not harm your brain or kill you, assures Director General of the Telecom Regulatory Commission (TRC) Anusha Pelpita.
Research on Peruvian demand for telecom services by Aileen Aguero, a researcher from DIRSI, who is current working at LIRNEasia for six months, has made it to the leading newspaper in Peru. The article, which documents the introduction of bundled services by telecom companies, uses Aileen’s research on the demand for telecom services in Peru to explain the provision of varied packages by operators to suit different socio-economic groups. Her study shows that the lowest socio-economic group spends only 5% of family income on telecommunications; however, for every 10% increase in family income, Peruvians increases their spending on telecommunications by 19.7% on average. The full (local language) article is available here.
One seemingly less important budget proposal made yesterday by President Mahinda Rajapakse – many might have missed it – is the eligibility extension of the popular ‘low cost’ UPAHARA package by Mobitel to clergy and employees of co-op societies. Only public sector employees plus retirees had the privilege before. No doubt, a private company, even a one with govt hand in it, can offer special rates for a niche market, which it finds lucrative. However, when that is recognized more as govt policy, and spelled in a budget speech, inevitably eyebrows go up and questions arise. The most deserving beneficiaries of low cost teleuse are the poor – or the so called ‘Bottom of the Pyramid’ (BoP).