The TRC is likely to address problems of a “level playing field” that come up when a global tech company offers the same service that a local company does.
It was back in 2009 that I was criticized for saying that regulation based on an understanding of the operative Budget Telecom Network Model did not permit strict regulation of quality of service. It was also around then that we started focusing on taxes as a factor. That was repeated many times in Bangladesh by us, for example, when I outlined what needed to be done to achieve Digital Bangladesh. That these things have to be said again and again, indicates we have not been very effective. The national exchequer gets Tk 51 of every Tk 100 spent by a mobile user, leaving less money for the operators to develop network and run business smoothly, the GSMA said yesterday.
Policy making in times of rapidly changing technology is not easy. Here is a description of the architecture of the new 5G networks: The new technology, known as 5G, delivers wireless internet at far faster speeds than existing cellular connections. But it also requires different hardware to deliver the signals. Instead of relying on large towers placed far apart, the new signals will come from smaller equipment placed an average of 500 feet apart in neighborhoods and business districts. Much of the equipment will be on streetlights or utility poles, often accompanied by containers the size of refrigerators on the ground.
We have been writing about network shutdowns for a long time. We even formulated a law to explain its workings. Now finally a court has ruled: The judgement reads as, “For what has been discussed above, the instant appeal and the connected petitions are allowed. Consequently, the actions, orders and directives issued by the Federal Government or the Authority, as the case may be, which are inconsistent with the provisions of section 54(3) are declared as illegal, ultra vires and without lawful authority and jurisdiction. The Federal Government or the Authority are, therefore, not vested with the power and jurisdiction to suspend or cause the suspension of mobile cellular services or operations on the ground of national security except as provided under section 54(3).
The Household Income and Expenditure Survey is an important report. The 2016 report is just out. The previous report (2012-13) found that 12.5 percent of Sri Lankan households lacked telephone service, fixed or mobile. By 2016, the phoneless households had declined to 8.
In Myanmar, the third operator overtook the second, and is close to the first. In Sri Lanka, the fourth operator reached first place within a few years and never let go of that position. That’s evidence enough that entry order is not the sole deciding factor. But the fact that MPT under new management is still in the lead shows that it’s not insignificant. One needs a new business model, a different technology or some secret sauce.
Mytel, the fourth entrant in the Myanmar market, aims to be first. According to them, the question is not whether, but when. The fourth telecom operator, Myanmar National Tele and Communications Co Ltd (Mytel), said its investment has reached to about US$1 billion (1.36 trillion kyat) including the license fee in Myanmar. The telecommunication sector has the highest level of foreign investment.
I have this unfortunate tendency to recognize my own writing. This is what was in an article about the tower levy in the Sunday Times, 26th of November 2017: This was another reason for the government’s action to reduce the number of towers, he said. The tower levy is unlikely to result in the quick consolidation of antennae to fewer towers because tower sharing is already happening and in most cases, mounting additional antennae on existing towers is not practically possible because of the weight they (or the underlying structures) have been designed to carry. The likely outcome is the shutting down of marginal towers, harming the quality of service in the cities and loss of service in some rural areas. This what I had written under my name in the FT this past Monday, 20th of November 2017.
Sri Lanka has not one, but two, government-owned TV channels. They tend to be used for propaganda, but there are occasions when they act like normal news channels, serving the public interest in understanding what is going on. Last week, for example, I was happy to be on a talk show in the midst of a breakdown of fuel supplies debating the issues with a leader of a trade union combine that is trying its hardest to roll back even the current nominal liberalization and restore some kind of retrograde state monopoly. This week, I was invited to come on the show again to discuss the budget. I am generally supportive of the thrust of the 2018 budget proposals, which may be why they invited me.
It was in 1998, almost 20 years ago, that I was invited to a meeting at the Urban Development Authority of Sri Lanka in my capacity as Director General of Telecommunications. They had identified a high point in the city of Colombo to locate ALL the cellular antenna towers and they wanted me to concur with their plans. I explained that the very concept of cells required multiple towers in multiple locations. Twenty years later, the same ignorance is being displayed again. A Minister of the government is making speeches in Parliament about how all of Sri Lanka can be served by nine towers.
As I was thinking about how to explain the silliness of charging LKR 200,000 (USD 1,300) per antenna tower per month as proposed by Sri Lanka’s 2018 Budget, I came across this piece on how African governments were shooting themselves in the foot by following the Willie Sutton doctrine: Unfortunately, instead of seizing such opportunities, many African governments are energetically discouraging the spread of technology. Many ban genetically modified crops, refusing even to accept them as food aid when their people are starving. Almost all invest far too little in science and research, and have byzantine visa systems that discourage skilled immigration. And they tax mobile phone and internet companies at punitive rates. In 2015 mobile-phone operators in 12 African countries paid taxes and other fees equivalent to 35% of their turnover, says the GSMA, an industry lobby.
I’ve always had this fascination with the cellar dwellers. Those days, Myanmar was firmly ensconced in the second to last place, kept from the honor of being the least connected place by St Helena. But the 4,000 plus inhabitants have had mobile telephony since 2015. As of two weeks ago scheduled flights are landing in their brand new airport. And they are about to be connected to SAEx soon.
Two and a half weeks after the Sri Lanka Broadband Summit, the coverage continues, this time in the highest-circulation English language newspaper, the Sunday Times. The Sri Lankan government should be focusing more on investment and not subsidies to develop telecommunications in the country, says Rohan Samarajiva Chairman of LIRNEasia. Addressing the second Broadband Forum held at the Galle Face Hotel in Colombo recently Mr. Samarajiva said that the Government said, “The Sri Lankan government should focused more on investment and not subsidies. Taxing incoming and outgoing calls in this day and age is silly.
The significance of opinion leaders and influentials seeing how life is in other countries is under-appreciated. Around 2000, because of my expertise, I started representing Myanmar at the Association of Southeast Asian Nations on technological matters. As I traveled, I saw that neighboring countries were surpassing us. Once, in Cambodia, when I spotted a taxi driver with a cell phone, I thought, “A taxi driver isn’t supposed to have that!” I was also one of the first people in Myanmar to get the internet, and I realized that with just a few clicks, a kid from here could have the same access as one in Silicon Valley.
We have not worked on mobile money in Myanmar. But now that mobile penetration is quite high, time is ripe for mobile financial services. Here is a description of the challenges: The biggest challenge for anyone in this business is the distribution network. Myanmar is such a big country. We’re now in about 70% of townships around the country – to get around and actually see where our outlets are, it’s a lot of travel.
They were extremely high to start with. But still, a good thing. Sri Lanka should be careful we don’t take over Pakistan’s position as the most taxed ICT sector. The breaks will see the withholding tax on mobile services drop from 14% to 12.5%, while federal excise duty will fall from 18.