Financial Times

Competitors threaten to stop interconnect to Airtel

By Duruthu Edirimuni Chandrasekera

Some operators have threatened to stop interconnect facilities to Airtel as they have breached the Interconnect agreement by not withdrawing tariffs not approved by the Telecommunication Regulatory Authority (TRC), according to TRC sources and some mobile operators.

“Airtel had confirmed to TRC through a mobile text message on Wednesday that they had withdrawn a particular tariff but that has not happened. Also out of the four tariffs that they are expected to withdraw, they only promised to withdraw the five times offer (which is for a Rs 100 re-load, Airtel gives the customer Rs 500),” a senior official of a mobile company told the Sunday Times FT.

When the other operators protested about the unapproved tariffs, Airtel had promised TRC on Monday to withdraw all unapproved tariffs from the market within the next 24 hours, a TRC source said. He said that TRC told them (wrote letters) many times over the past month to withdraw these and finally sent them a warning and on Monday Airtel had informed that they will withdraw the tariff.

He said when these tariffs were sent for sanctioning by Airtel to TRC, the regulator had written to Airtel with the relevant reasons why these cannot be approved. “But they went ahead with it. Then we followed up with many letters requesting them to stop the tariffs as the other operators were also getting agitated,” he explained, adding that the other four players (Tigo, Mobitel, Dialog and Hutch) had threatened to stop interconnect to Airtel if the fifth operator is adamant not to withdraw the said tariffs.

Interconnect is a set of legal rules, technical and operational arrangements between network operators that enable customers on one network to communicate with customers of another network). “However till Thursday they had not withdrawn the tariffs –especially the five times offer. At the Airtel call centre the staff say the company does not promote it anymore, but when a customer goes in for a re-load it is there,” the senior mobile company official said. He said this promotion was still running in Kandy when the operators checked it on Friday morning.

“Most of us wrote to Airtel on Wednesday saying that Airtel is in material breach of the interconnect agreement as we can only allow TRC approved tariffs and not others. We also wrote to TRC demanding corrective action,” he said. This was confirmed by other operators.

The official also said some of the other Airtel tariffs that are not sanctioned by the TRC are the 100 short message service (SMS), 49 cents Airtel to Airtel tariff with a Rs 99 subscription (but Airtel charges only Rs 49 as subscription) and the exclusive agreement with Nokia called the Airtel Handset Bundle Offer. The bundle offer combines free outgoing calls and free SMSs to Airtel and all other networks, in addition to free data usage offers when a customer purchases a Nokia handset.

Asked to respond to these issues, Airtel’s Corporation Communications division said in an email: “All tariff offered by Airtel is duly approved by the Telecommunications Regulatory Commission of Sri Lanka. We wish to emphasise that the customer is always at the forefront of our business, and we will continue to drive affordability and make our services accessible for all Sri Lankans to enjoy.”

Last month Airtel secured one million ‘revenue earning’ customers since its launch on 12, January with its officials announcing at a media launch that this has made Airtel the fastest growing mobile telco in the market presently.

 
Top to the page  |  E-mail  |  views[1]
 
Other Financial Times Articles
Lanka’s forex reserves surge
F&G directors meet in Welikada prison on payment plan
Top investor Jim Rogers visits Sri Lanka
SLIC board's random decisions irk staff
Police caught flat-footed on public-smoking arrests
SLT facing an internal crisis
Kotelawala, GK directors meet at Central Bank
COMMENT - Jim Rogers was here!
Fallacy and the reality of IMF Standby Arrangement for Sri Lanka
CIMA/ICMA - Accounting qualification battle rages on
‘Small Miracle’ Tagline is no more
HNB opens commercial operations for remittances from Canada
Terminations, VRS and workforce restructuring on the rise
Developing nation consumers prefer mobiles for Internet access
Call for more engineers to be produced
Distilleries profits drop sharply
Summa Navaratnam ends mercantile career of over five decades
Managing properties in Sri Lanka and overseas as local industry takes off
The new silver frosted proof coins
Pakistan Civil Aviation hires MTI Consulting
Improved agricultural knowledge access through IT
Sri Lanka's banking technology leads region
SIA to fly to Melbourne with A380
Textured Jersey to supply fleece fabric for Pink, the No.1 lounge wear brand
New war strategies succeeded against LTTE
Dispute once again over SLT Tariffs
Lalith W wants the Public Service to be courteous
Seven judge SC bench to hear PBJ case
Garment exports down for second month in a row
Garment factories invited to go North
Bilingual education system showing good results – Education Ministry
Fewer students attracted to marketing field this year
EFC study on training needs of SMEs
Education opportunities in New Zealand
UK Sri Lankan Business Directory launched
Micro Cars to manufacture container trucks and tractors for the North and East
Upcoming IT park: Orion City ties up with Suntel
‘Garments without Guilt’ campaign gets another global award
A wise call on Colombo South Port
Competitors threaten to stop interconnect to Airtel
Sukuk certificates to attract Muslim millions for post-war development
HNB shows slight increase in profits
CCC receives applications for this year’s CSR awards
Allianz Lanka continues growth performance into 2Q09
SriLankan Airlines saves Rs. 6 billion through cost restructuring measures
Privatisation: Myth and reality
Singer net profit down for 1H09 and 2Q09
Lankan entrepreneur nominated for biz award
400 stalls at 2009 Colombo International Book Fair
NDB an attractive option for a merger
Local companies yet to face true global competition
LankaClear net profit drops in 2008/09 Financial Year
Huge remittances through Seylan Bank

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution