Financial Times

Video streaming on mobile phones

The local mobile phone industry is technologically on par with markets across the world as this picture shows. Dialog GSM, a leading mobile operator in the country recently launched video streaming of popular television channels on their networks. Here an employee of the company demonstrates the service to The Sunday Times FT on a phone unit that supports this service. Pic by M.A. Pushpakumara

Mobile operators seek alternative to annual phone levy
By Akhry Ameer

Mobile telecommunication operators are seeking an alternate tax collection mechanism to the annual phone levy of Rs. 300 that has been proposed in the Budget 2004. The operators are of the opinion that the levy is impractical and especially affects the lower income segment of subscribers.

The operators have requested a meeting with Finance Ministry officials to explain the problem and urge the ministry to provide an alternate proposal. "We see the rationale behind the levy, but a flat fee concept is not good for the industry. The industry intends to meet with the minister and seek a method of implementation that is more in line with the trends of the mobile sector, while protecting the revenue interest of the government," said Dr. Hans Wijayasuriya, Chief Executive Officer of Dialog GSM, the largest mobile operator in the country.

Dumindra Ratnayake, Chief Executive Officer of Celltel, which commands a large pre-paid customer segment of the market also agreed with this view. "This would cause a huge burden on the lower income end of the market where the monthly spend is some times around Rs. 50. With the levy they may even dropout. Further, it is not workable as these customers do not receive monthly bills", he said.

"It is impractical and would hurt the pre-paid segment," added Lalith De Silva, Chief Executive Officer of Mobitel, which recently launched a new GSM network.
Dr. Wijayasuriya explaining the issue acknowledged the revenue loss for the government from importation of mobile phones by small time importers. By introducing the levy this revenue can be effectively collected from the operators who would strictly enforce such measures.

However, he pointed out that this solution goes against worldwide trends where operators are moving away from fixed charges. "This levy would curtail growth of telecommunication especially among the lower income segments of the people. The industry has achieved a great victory in being able to provide solutions for subscribers who use mobile phone selectively with a monthly spend of Rs. 100. Adding another Rs. 25 would definitely hurt their purse as it is a significant amount for them,” he added.

Asked for an industry recommended solution he said it should protect the lower end of mobile subscribers and be a mechanism that is not a barrier to ownership of mobile phones.

Dr. Wijayasuriya also added that the removal of VAT on mobile phones is welcome as it is in line with the ICT vision for the country. Speaking of the existing mobile phone market in the country he said that every unit is being made full use of and has a long lifetime in the hands of several subscribers through a rampant 'pass down' or second hand market. As such, the concept of the levy is counter-productive and does not promote access to telecommunication facilities.

The local mobile phone industry is expected to grow phenomenally in the coming year with the introduction of the Caller-Party-Pays system whereby all incoming calls will be free to the receiver.

Meanwhile, Mobitel's controversial free call offer issue reached new heights with TRC filing action against the operator for contravening its license regulations. Mobitel's application to the Court of Appeal contesting the TRC directive was also postponed. During the week Dialog GSM and five other Mobitel subscribers filed applications to intervene and protect their interests.

Opposition leader Rajapakse endorses ICT initiatives
Opposition Leader Mahinda Rajapakse endorsed the initiatives of the Information Communication Technology Agency of Sri Lanka (ICTA) at the launch of a ICT training programme for media personnel last week.

Addressing the group, Rajapakse stressed that all parts of the country can be developed only through a tri-partisan approach, where programmes are implemented by the state and the private sector together with the civil society.

He added that the tri-party approach was necessary for the rural community to benefit from the information technology programmes to be implemented in rural areas. He added that programmes carried out by a single party have so far not been successful.

The opposition leader also commended the computerization of the offices of the President, the Prime Minister and the Parliament; and improving computer literacy of the staff of these institutions under the e-leadership programme. He requested that a similar programme be launched for the Office of the Leader of the Opposition as well.
Addressing the gathering, the Team Leader of the Public Interest Programme Unit Professor Rohan Samarajiwa said media personnel can use the Internet as a rich source for their professional work and that the training was aimed at such benefits.
Manju Haththotuwa, Chief Executive Officer, ICTA explained that ICT can be utilized to create a generation of 'empowered journalists' in Sri Lanka.

He said the ICTA was ready to support the journalists in this endeavour adding that the media can play a major role in taking information technology to the village.
Co-coordinator of the e-Society programme, Dilanthe Withanage said that the government had taken an important strategic decision to allow the ICT Agency, which is an entity under the Ministry of Economic Reforms, Science and Technology, to work independently.

He said its impartiality was confirmed by the participation of the Opposition Leader at the event. The media training programme was organized by the e-journalists of Sri Lanka and was sponsored by Open Systems Technologies' CADD Centre and implemented under the direction of the ICTA.

National awards for e-society reporting
The Information Communication Technology Agency of Sri Lanka (ICTA) has announced an e-Society National Media Awards programme to encourage and recognize thoughtful and incisive reporting on Sri Lanka's progress in becoming an "Information Society." The inaugural awards is scheduled to be held on the final day of the national e-society promotion campaign in March 2004.

The ICTA is looking for journalistic reporting that creates awareness, builds understanding of the importance of ICT for development and highlights the impact of national and global ICT policies on development, according to an ICT statement.
The awards will be made for published reports of journalists in print, radio, television or the Internet.

The reports should go beyond describing projects or new investment initiatives, analysing broader issues such as the social impact of ICT particularly on rural or disadvantaged groups, or national and global communication policy issues.
The works published from January 2003 to February 2004 may be nominated by sending a clipping, audio or video tape, transcript or web reference by email to: mediaawards@icta.lk or by post to: Coordinator, e-society National Media Awards, ICT Agency of Sri Lanka, 160/24, Kirimandala Mawatha, Colombo 5.

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