srk006 21 Report post Posted July 19, 2010 Source Bharti objects to Sri Lankan mobile phone prices COLOMBO: Bharti Airtel has petitioned Sri Lanka's Supreme Court to stop a new minimum mobile phone price plan announced by the telecom regulator, an official said Sunday. The Telecommunications Regulatory Commission on Thursday fixed a floor price of two Sri Lankan rupees (0.2 US cents) per minute for outgoing calls on mobile networks, after two years of stiff competition plunged the industry into massive losses. The regulator said mobile phone operators reported a combined loss of 23 billion rupees (200 million dollars) in 2009, for the first time since cellular phones were introduced to Sri Lanka in 1989. Airtel, the fifth entrant in Sri Lanka's five-player mobile market, believes the floor price was against consumer interest, its Corporate Communications chief Yohan Munaweera said. Petitioning the Supreme Court on Friday, Airtel said a floor price "will only help the market leader and maintain the status quo at the expense of the consumer." Prior to the watchdog's ruling on Thursday, the cost of making mobile phone calls had fallen to 25 Sri Lankan cents (0.0022 US cents) per minute, the regulator said. In its petition, Airtel, which began operations in January 2009, said unless a new player offered cheaper call rates "any newcomer will not be able to attract subscribers." Besides Airtel, the island's 15-million user mobile market is mainly shared between Malaysia's Dialog Axiata, Dubai's Etisalat, Mobitel Lanka and Hong Kong's Hutchison Whampoa. The telecom regulator Anusha Palpita was not immediately available for comment, but he told AFP last Thursday that losses made it difficult for mobile operators to invest in new technologies to expand their network. Regional technology think-tank LIRNEasia said while a floor price could steady cashflows, the absence of a competition regulator had forced the government to step in. A number of Sri Lankan mobile users own multiple SIM (Subscriber Indentity Module) cards, either from the same operator or from rival operator, to make use of discount call packages. The regulator's ruling only affects new packages issued from last Thursday. "Since the minimum prices affect new customers, we think it will create a grey market for SIMs," said Helani Galpaya, Chief Operating Officer of LIRNEasia. ------------------------------------------------- see how Airtel is crying against minimum price in Sri Lanka as they are the fifth operator there... and here, being the leader they try to prevent competition. Share this post Link to post Share on other sites
kshah 452 Report post Posted July 19, 2010 That's business. Share this post Link to post Share on other sites
abhi.r 95 Report post Posted July 20, 2010 Thats real bad news for the sri lankan Consumers. "The telecom regulator Anusha Palpita was not immediately available for comment, but he told AFP last Thursday that losses made it difficult for mobile operators to invest in new technologies to expand their network." and I always thought that competition encourages innovations! Share this post Link to post Share on other sites
starnet 7 Report post Posted July 20, 2010 So the so called regulator has raised prices by 8 times in one go to please the incumbent operators. I guess our own A. Raja will take inspiration from this and try to do the same. Share this post Link to post Share on other sites
Greatest 55 Report post Posted July 21, 2010 ^^^ If something like this happens in India, I have a feeling, the consumers would want to boycott mobile telephony... Share this post Link to post Share on other sites
kshah 452 Report post Posted July 21, 2010 ^^^ This is called day dreaming Share this post Link to post Share on other sites
srk006 21 Report post Posted July 21, 2010 (edited) Its not dreaming, It actually happened with Landlines. See how people have stopped using landlines as mobiles are becoming cheaper. The reverse can also happen! Edited July 21, 2010 by srk006 Share this post Link to post Share on other sites
abhi.r 95 Report post Posted July 21, 2010 ^^^ If something like this happens in India, I have a feeling, the consumers would want to boycott mobile telephony... yea, even I think that Mobile has become one of the basic necessities(roti, kapda, makaan aur mobile ) of Modern day world. People used it when it used to cost Rs. 16 (incoming/outgoing) and people use it when its free today (well almost free). For some people its like Life Support System today. Share this post Link to post Share on other sites
kshah 452 Report post Posted July 21, 2010 It could happen from operator and regulatory not from consumer I meant consumer. Indian and united and boycott? Impossible Share this post Link to post Share on other sites
ferrari 0 Report post Posted July 24, 2010 Sri Lankan government should let the free market work. If the companies cannot afford lower prices and competition, then let them shut down the companies. Let the efficient and innovative companies win. Share this post Link to post Share on other sites
Harshal 11 Report post Posted July 26, 2010 ^^^ Agree. That's how it should be. Share this post Link to post Share on other sites
KanagaDeepan 1,084 Report post Posted July 27, 2010 Its not dreaming, It actually happened with Landlines. See how people have stopped using landlines as mobiles are becoming cheaper. The reverse can also happen! Very TRUE... If BroadBand is NOT here now, I would have surrendered almost all my 12 landline numbers few years ago... Share this post Link to post Share on other sites
