Business
Making mobile more affordable with abolition of interconnect fees
Key reforms that Sri Lanka’s Telco sector needs are lagging behind
by Sanath Nanayakkare
As the nation’s economy continues to experience a state of unprecedented turmoil, most Sri Lankans are tightening their wallets wherever they can. While it may be possible to cut down on extravagances, when it comes to the essentials Sri Lankans are faced with a stark lack of choice. Meanwhile, in an increasingly digital world, the definition of ‘essential’ has also expanded to include telecommunications.
While the island-wide expansion of telecom coverage has resulted in explosive growth in the consumption of mobile data, Sri Lanka’s lowest income segments still tend to rely less on mobile data and more on direct voice calls in order to stay connected.
However, speaking to The Island yesterday, a knowledgeable source in the Telco sector noted that structural issues in the sector – from the lagging implementation of Mobile Number Portability (MNP) to regressive fee structures such as the currently prevailing Interconnection Usage Charges (IUC) – place a disproportionate burden on Sri Lanka’s low income population.
IUC is the price charged by a particular network owner when they receive a call from outside of their network for the purpose of interconnecting a voice call to their network. Typically, telcos with the largest user bases earn the most from these IUCs. But it is always the user who gets charged with this fee. The source noted that these fees effectively function as a ‘proxy tax’ on the very segments that rely on it the most, while the benefits of this ‘tax’ are almost exclusively enjoyed by industry incumbents with the largest user bases.
Abolishment of such fees would bring Sri Lanka’s mobile industry into closer alignment with established global best practices by lowering standard call rates for all Sri Lankans for voice calls. After significant delays, IUCs were abolished in India in January 2021, in a move which has been widely credited with considerably easing the financial burden on consumers. Similar measures are also currently rolled out in Bangladesh, Nepal, and Israel.
Following the introduction and popularity of unlimited monthly plans for voice and social media for pre and postpaid customers by Airtel Lanka over the last quarter, the Sri Lankan market has shifted into mirroring their products with unlimited deals now appearing across all networks. However, even with such unlimited offers now available, abolishment of IUC will make unlimited call packages more affordable.
“Data has become the core business of all telco service providers. At the same time, voice calls are no longer the privilege they once were in previous decades. Given these historic trends, and especially in light of the current economic pain felt by all Sri Lankans, it is high time that IUCs were abolished, and initiatives like MNP be implemented in order to pass the maximum benefit possible to low-income groups who are the heaviest consumers for voice calls.” he said.
Such measures will even the telco playing field, resulting in increased competition between operators, and most importantly, lower prices for consumers. However, it appears that without pressure from both consumers and regulators, these reforms are unlikely to move forward, and therefore, will remain stagnant.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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