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By Chandani Jayatilleke

The Government yesterday decided to enact laws to concretise its plan to liberalise the international telecommunications gateway despite opposition from telecom service providers, a senior Government official told the Daily News yesterday.

This decision was taken by Prime Minister Ranil Wickremesinghe at a meeting yesterday.

It was reported that the telecom service providers: Telecom, Suntel, Lanka Bell, Dialog, Mobitel and Celltel were unhappy about the Government's earlier decision to liberalise the international telecom sector and even said they would challenge it in courts.

The companies challenging the Government's decision will not be granted a renewal of their licences, the official said.

If the Government had to deal with any issues raised by these companies, it will directly negotiate with their principal partners overseas. If necessary the Government will explore opportunities to introduce new business partners to the industry. The international gateway comes as part of Telecom reforms to increase efficiency in the sector and to significantly reduce call costs for consumers. These reforms are being introduced at the end of the five-year exclusive arrangement with Sri Lanka Telecom which ended on August 5, 2002.

The Government's plan is to open the telecom market further and to see greater competition in this field.

The entry of competitors into the international telecom services market will greatly benefit about two million Sri Lankans working and living abroad to keep in contact with their families. "Businesses that create employment through international trade will benefit improved choice and lower prices," the official said.

Even telecommunication companies will benefit because they will have the opportunity to get to a larger number of potential customers. Each of the new companies taking the licences will create many new employment opportunities.

The telecommunications companies will have to compete for business with the introduction of these reforms. But those which provide the best services at affordable prices will benefit from the larger market.

Where reforms of this nature have happened in other countries the established companies have survived and have prospered as a result of the larger markets being created, the official said.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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