In conventional thinking, complex industries with oligopoly characteristsics such as telecom require regulation by specialized agencies. Interconnection must be ensured; spectrum must be managed, etc. In addition, information asymmetries between operators and customers necessitate a degree of regulation of matters such as quality of service, billing accuracy and truth in advertising. For example, the Telecom Regulatory Commission of Sri Lanka has had a consumer relation unit since 1999. However, many regulators do not perform their functions satisfactorily.
In a fullpage advertisement that will be published in the Sunday papers on October 5th, Tigo, Sri Lanka’s “third” mobile operator (not that we place that much stock in market share calculations based on numbers of active SIMs), will effectively end the unloved receiving-party-pays regime in Sri Lanka. Its tariff scheme is about the simplest I have seen in a long time: all incoming calls free; offnet outgoing 10 LKR cents a second (roughly USD 0.001); onnet outgoing 5 LKR cents a second (roughly USD 0.0005). No time periods.