Dhiraagu, the incumbent telecom operator of the Maldives had its license renewed for a term of 15 years. Since its establishment in 1988, Dhiraagu enjoyed an exclusivity on the provision of fixed line services. It was also the only company allowed to carry international traffic into the island nation and terminate on any network. We are happy to note that the Telecom Authority of Maldives (TAM) has not extended these exclusivities in the new license that will be effective from January 2009. The move should, at a minimum, have an impact on international incoming call prices to the Maldives, since Dhiraagu’s competitor Wataniya will now be able to carry inward bound traffic and terminate on any network.
Several weeks ago we speculated on why the Maldives, with its tiny population, needed two undersea cables. The answer is that the first cable is a collaboration between the new entrant Wataniya and India’s disruptive competitor, Reliance (through its FLAG unit). This created enormous pressure on the complacent incumbent Dhiraagu, the result being the cable to Colombo. LANKA BUSINESS ONLINE – LBO A new fibre optic undersea cable that connects Maldives to Sri Lanka will bring down international call charges from the Indian Ocean coral atoll, officials said Tuesday.Until the cable was commissioned this month, bilateral traffic of 600,000 minutes per month was routed via more expensive satellite links.