SLT reduction not enough for consumers - CAL

By Natasha Gunaratne

The proposed overall reduction of 8.72% in charges and tariffs put forth by Sri Lanka Telecom (SLT) as part of its ongoing negotiations between the Consumers' Association of Lanka (CAL) is still not enough for CAL.

Chairman of the Association Peter Jayasekera told The Sunday Times FT he was not agreeable to the 8.72% reduction but is willing to negotiate further.

It was announced earlier this week during a Supreme Court hearing that SLT would reduce domestic phone rental charges by Rs.145 to Rs.350. Similarly, office phone rentals would also be reduced by Rs.50 to Rs.950. "These new rates will be retroactive from January 1, 2007 but I'm not satisfied about the Rs.350," Jayasekera said, referring to the domestic phone rental charges. He explained that over the past three years, domestic phone rentals have increased from Rs.200 per month which was raised to Rs.495 in September 2003. Jayasekera also said that SLT is trying to implement a start up charge which means if a person lifts a receiver, the telephone will be charged. "This is not good. This will bring SLT hidden revenues."

Jayasekera said he wants to get the maximum benefit for the people through the work of his association. He said the Telecommunications Regulatory Commission (TRC), which was appointed to act as mediator for the negotiations, has been more positive now rather than they were earlier. "I hope that there is still room for the rates to go down because SLT is making billions. In fact, they boasted that their profits were around Rs.500 billion during the time of the IPO."

"Generally, the TRC is now trying to bring some kind of compromised settlement because we have not agreed to earlier proposals which was taken up on Monday in the Supreme Court," Jayasekera said. "SLT had formulated their proposal on Sunday evening so we had no time to study it." CAL has asked the Court for further time to discuss the matter.

The Courts have assigned Wednesday, July 18 as the date when the two sides will hopefully reach an agreeable settlement.

Jayasekera said the Chief Justice Sarath Silva has suggested that the 8.72% reduction should be given to consumers. He also said that the Chief Justice is trying his best to bring about a settlement rather than drag the matter out in Court. However, SLT submitted another proposal to CAL on Tuesday which Jayasekera also has to study and analyze.

"If things are well and acceptable in our view and the people will benefit, we will agree."

If negotiations fail, Jayasekera said the Supreme Court will have to hear the matter according to the law and take a decision. However, he added that the Chief Justice is trying his best to bring about a settlement.

An official from SLT said the court decision on Monday was given to SLT 'for further study on the new tariff implementation.'

The official also said the final judgment can vary. "Figures, numbers and percentages can be changed when the final decision will be given on August 27." The official declined to comment on how the new tariff revision proposals will affect SLT's bottom line.

A press release from SLT said 'on the direction of the Court, SLT had already forwarded five proposals to the TRC in order to effect a tariff reduction.” The court directed TRC to facilitate further negotiations between SLT and the Consumers' Association of Lanka.