Financial Times

Incoming free on mobiles from March

By Akhry Ameer
A major distinction between fixed-line operators and mobile operators will end next month - from March 1 - after a four-year saga of deliberations. Incoming calls on mobile phones that were otherwise being charged will now be free with the introduction of the Caller-Party-Pays (CPP) system.

According to the new CPP system, the complete cost of a call will be borne by the originator of the call relieving all burdens upon the receiver. As a result, fixed-phone users of Sri Lanka Telecom, Suntel and Lanka Bell will now have to bear an additional charge of up to Rs. 5.00 per minute during peak hours when dialling any mobile phone. The average increase across all time bands and all three fixed-line operators is Rs. 4.30 per minute. Mobile phone operators however, have not released their revised tariff tables.

Tilak Ranaviraja, Chairman of the Telecommunication Regulatory Commission (TRC) sounding apprehensive at a recent news conference said that he was not aware that the increase in call charges would be as high as Rs. 5.00 when calling a mobile phone. However, as the study has been initiated by the previous Commission and given the benefits accrued in other countries he was willing to monitor consumer reactions and settle on the introduction of CPP.

P.N.Selvakumar, Deputy Director of TRC explaining the economics of the post CPP regime said that these costs were initial charges and are likely to decrease due to competition. He also cited as an example the difference in tariff plans of the local wireless loop operators.

Lanka Bell during peak times proposes to charge Rs. 9.40 per minute for every call made to a mobile phone, while Suntel proposes to charge Rs. 11.00 for its first minute and Rs. 10.60 for the second minute onwards absorbing 40 cents due to their higher call charges.

Mobile phone operators in the quest for market share amidst stiff competition have found alternatives like higher rentals and special packages in their tariff plans to provide the benefit of free incoming calls until now. However, all tariff plans are to be revised according to heads of mobile phone companies with a possible increase in monthly rentals.

The CPP is being enforced with the agreement of all operators to provide wider accessibility of telecommunication services to citizens of the country. Countries such as India, Pakistan, Argentina, Chile, etc have seen a phenomenal increase of mobile phone users in a short time span as low as one year after the introduction of CPP in those countries. Currently the Sri Lanka mobile phone population stands at around 1.3 million. This number is expected to at least double in the next two years with two leading operators last year expanding their networks and providing capacity for such growth.

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