Financial Times

ICTA accused of usurping TRC powers
Sri Lanka's seven main telecom operators last week took the Information and Communication Technology Agency (ICTA) to court accusing the agency of usurping the powers vested with the Telecommunication Regulatory Authority (TRC) in the provision of telecommunication licences.

At issue is a request for Pre-Qualifications by ICTA in connection with the proposed issue of licences for Regional Telecommunication Networks in the "Deep South and North East quadrants of Sri Lanka."

Having appealed to the TRC to step in the matter and pending the TRC holding a public hearing, the seven companies - Celltel Lanka, Lanka Bell, Suntel, Sri Lanka Telecom, Mobitel, MTN Networks and Hutchison - filed action in the Colombo District Court and succeeded in obtaining an enjoining order barring the ICTA from proceeding.

The court made order restraining the ICTA till March 29 from taking any steps whatsoever in pursuance of the proposed issue of licences. The case will be taken up again on Tuesday.

The telecom operators complained that the ICTA action was in violation of the Sri Lanka Telecommunications Act as well as in violation of the rights of these operators as it would destroy the level playing field and lead to anti-competitive practices in the telecommunications sector. The operators complained that ICTA had arrogated to itself the powers and obligations of the TRC and is seeking to embark on a course of action to issue licenses to set up Regional Telecommunication Networks.

All of the telecom operators said they had complained to the TRC and requested the latter to hold a public hearing regarding the issue of these licences.

The petitioners said there was a lack of transparency in the ICTA process. "Although the Technical Report states that the primary inputs for the research and analysis were … the result of extensive discussions with the Public Interest Programme Unit and the 1st Defendant, it is important to note that the TRC although it is the regulatory body for the telecommunications sector in Sri Lanka, appears not to have been consulted in the preparation of the Technical Reports," one petition filed by Celltel, Suntel and Lanka Bell noted.

Among the other objections raised by the telecom operators are --
- Preferential terms to RTN operators that would effectively erode competition.

- RTN holders will be issued with unified licences allowing them to operate a range of telecommunication services including fixed line, mobile and Internet services whereas the existing licences permits the plaintiffs to only operate and/or provide a specified telecommunication service i.e. only fixed line or only mobile services etc.

- RTN holders will be provided with a subsidy in the designated areas in the provision of these services while the plaintiffs have had to incur and continue to incur substantial capital expenditure in providing its services including services to the northeast and deep-south regions.

- RTN holders don't need to pay spectrum fees for the last mile of access whereas the plaintiffs have to pay spectrum fees to the TRC. The petitioners have sought to prevent the ICTA process until a due hearing by the TRC is held on the representations made by industry players.

Mr. K. Kanag-Isvaran P.C. with Mr. Avindra Rodrigo instructed by M/s F. J. & G. de Saram appeared for Celltel, Lanka Bell and Suntel. Mr. Kanag-Isvaran also appeared for Sri Lanka Telecom, instructed by M/s Julius and Creasy and for the Dialog, Mobitel and Hutchison with Sanjeewa Jayawardene instructed by Sudath Perera Associates.

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