Financial Times

TRC checkmates unfair practices
By Feizal Samath
As Sri Lanka's telecommunication industry gets into full gear amidst allegations by some companies of foul play, the Telecommunication Regulatory Authority (TRC) is preparing a mechanism to tackle anti-competitive practices, steering the way for regulators in other sectors to follow similar guidelines.

Foreign experts are due in Sri Lanka around January next year to advise the TRC on ways of doing this to bring some sanity into the industry and ensure proper checks and balances. Government officials said the expert consultants, to be selected in coming weeks, would help install a mechanism for TRC regulatory officials to undertake anti competitive proceedings whenever there is a dispute between operators.

They said that with the telecommunication industry becoming competitive and in some cases where cutthroat competition has prevailed among fixed phone and mobile operators, there was a need to settle disputes when unfair business practices arose. Prof. Rohan Samarajiva, team leader, Public Interest Programme Unit of the Ministry of Economic Reforms, said the license conditions of all telecom operators contain provisions on anti competitive practices. "So everyone knows the rules." He said several months ago the TRC asked the Economic Reforms Ministry to assist in getting international expertise to carry out investigations on anti competitive practices.

“We have gone through the usual procurement procedures and are close to making a decision on the consultants,” he said adding that a Hong Kong based company is being considered. He said the anti competitive proceedings will not involve public participation. It will have the complainant operator and the 'accused' with TRC officials examining the issues and taking a decision. “Whenever there is a dispute on anti competitive practices, this kind of process would take place.”

The process, as practiced in other countries, is non discriminatory against any operator. Prof. Samarajiva said in the Sri Lankan case the consultants along with TRC officials will work out a practice that is more suitable to this country to tackle these issues.

He said anti-competitive regulations when implemented would not apply in the case of the present furore over Mobitel’s move to offer free incoming and outgoing calls during a specified period. “In this case, an operator has filed action against the TRC – the regulator.” He said in disputes between operators if cases are filed in courts, the courts would most likely refer it to the TRC’s anti-competitive panel.

Mobitel has gone to the Court of Appeal to contest a decision by the Telecommunications Regulatory Commission (TRC) ordering the firm to discontinue its offer. Other phone companies have also filed applications to intervene in the case while on Thursday, Mobitel dealers also sought to intervene in the case which is to be taken up again on December 5.

Prof Samarajiva’s unit works on various infrastructure projects to help economic reforms. In the telecommunication sector it has been working with the Telecommunications Ministry to complete the reforms. Setting up a mechanism to tackle unfair trade practices would also help to steer other regulators and upcoming ones in LPG, petroleum, water, power and the financial sector.

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