AT&T announced its plans to take over T Mobile in March 2011. More than five months later, the US Department of Justice filed suit to block it. Now the FCC joins the fray. While all this is going on, T Mobile must be hemorrhaging to death. In Sri Lanka, we do not have these kinds of complications.
Looks like we have a virtuous cycle of investment going on. Not only the mobiles, but the fixed operators too are engaging in significant investment. Possibly the unusual predilection of the Sri Lankan consumer for fixed phones, over mobile, keeps Suntel going. For those not from Sri Lanka, 1 USD = 106 LKR, just lopping off two zeros will you a good sense of what is being discussed. LANKA BUSINESS ONLINE – LBO Telecom operator Suntel, a unit of Sweden’s Overseas Telecom AB, plans to spend 3.
The LBO story states: Sri Lanka’s two private wireless local loop telecom operators have been called up to pay around Rs. 400 million as duties for importing handsets, industry officials said. Last month, the island’s Board of Investment (BOI) slapped a 33 percent import duty on Code Division Multiple Access (CDMA) handsets with immediate effect. CDMA is a low cost cellular technology that has been effectively used world over to provide cheaper connectivity to rural homes. Though the technology is similar to mobile phones, the handsets are similar to a bulky fixed line unit.