Sri Lanka: Fixed-mobile substitution drives down prices

Posted on September 7, 2009  /  0 Comments

We wrote a few weeks back that fixed-mobile substitution that was decreasing fixed subscriptions in India and Pakistan had arrived in Sri Lanka. Instead of waiting for more fixed phones to be disconnected, Sri Lanka Telecom is taking proactive steps to keep its customers. Shows that competition delivers what court cases and regulation cannot.

Sri Lanka Telecom, the island’s dominant fixed line operator, said it was offering lower rates and discounts in new subscriber packages amid intensifying competition among phone companies.
In its new post-paid tariff plans called ‘V talk’, call rates to fixed and mobile phones have been reduced up to 35 percent and monthly rental reduced up to 48 percent, the company said in a statement.

“The new packages offer per second billing, low call charges, low rentals, flat rates, low calling rates for mobiles, and are also able to meet special requirements like fixed rate per call or fixed rate per minute options.”

In one of the packages, subscribers can call any network, fixed and mobile, at just one cent per second, excluding government taxes, during the discount time band everyday between 9.00 pm to 5.00 am.

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