Report
Report
Report
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
P ROSPECTS FOR THE TELECOMMUNICATION SECTOR UNDER SAFTA 175<br />
for supply by wireless local loop of basic voice<br />
telephony, data transmission, payphones, voice<br />
mail and facsimile; the two licensees are<br />
guaranteed exclusivity for five years.<br />
– Commits to five licenses for public payphones<br />
services and for paging services licenses with<br />
possible additional suppliers of each to<br />
permitted subject to economic needs tests.<br />
– For all suppliers other than SLT, foreign equity<br />
permitted up to 40% with investments over<br />
40% subject to case-by-case approval.<br />
• For circuit switched data transmission services<br />
• For facsimile services<br />
• For private leased circuit services: Commits to six<br />
operators of data communication services. For<br />
GMPCS services supplied through own gateways,<br />
indicates that issuance of licenses is under<br />
consideration.<br />
• For cellular mobile telephony:<br />
– Commits to four operators of cellular mobile<br />
services<br />
– For all suppliers other than SLT, foreign equity<br />
permitted up to 40% with investments over<br />
40% subject to case-by-case approval.<br />
• Has filed for MFN exemptions with regard to<br />
accounting rates to permit the Government or the<br />
Government-run operator to apply differential<br />
measures, such as accounting rates, in bilateral<br />
agreements with other operators or countries.<br />
• Additional commitments taken are as follows:<br />
– Sri Lanka has committed to the reference paper<br />
on regulatory principles.<br />
Sri Lanka has not submitted an offer to the WTO<br />
or at least it is not available in the public domain. The<br />
gap between the applicable regime and commitments<br />
for Sri Lanka are wide and there has been considerable<br />
criticism of this disparity. For example, it has been<br />
stated that it is unlikely that the level of commitments<br />
made by the government of Sri Lanka (GoSL) would<br />
be accepted by the parties to the GATS today. 10 But<br />
they were accepted, and there is no specific overt<br />
pressure on GoSL to improve its commitments at this<br />
time. Such pressure may arise either when the Doha<br />
Process gets restarted or within the context of bilateral<br />
or plurilateral trade negotiations, especially with<br />
countries that have significantly liberalised their telecom<br />
sectors and are home to regional investors. One reason<br />
GoSL would consider making concessions in telecom<br />
services is to gain concessions in a different sector such<br />
apparel exports. This was the primary objective of<br />
GoSL in the tentative negotiations with the USA on an<br />
FTA in 2003. 11<br />
Nepal<br />
Despite a very politically volatile situation in Nepal,<br />
the telecom sector saw a good growth rate. On the fixed<br />
service front the quarter ending July ’07 more than<br />
57,00 new lines were added, most lines being catered<br />
by CDMA network, viz., fixed wireless and limited<br />
mobility. The overall growth rate in six months was<br />
20.31%. The fixed line penetration is still low at 2.73%.<br />
The gap between fixed line penetration and mobile<br />
penetration is still getting wider with mobile penetration<br />
jumping to 5.67%.<br />
There are two fixed line service providers NDCL<br />
and UTL and their market share is 88% and 12%, respectively.<br />
NDCL is providing service in all the districts<br />
of Nepal through wire-line as well as wireless service.<br />
Both operators have obtained license to operate limited<br />
mobility service in addition to their fixed service license.<br />
Mobile services saw growth of over 50% in last<br />
six months in terms of net subscriber addition. Nepal<br />
Telecom has introduced 3G mobile services since 17<br />
May 2007. Rural service was expanded in Nepal under<br />
the fifth phase telecom project, through Japanese (JICA)<br />
and IDA (World Bank) fund. Country’s seventy-five<br />
district centres have automatic telecommunications<br />
service, including STD and ISD. On the Internet services<br />
front, even with more than thirty ISPs currently operating,<br />
this sector has not shown any noticeable performance.<br />
Growth of Internet subscribers in the quarterending<br />
July was just 62,586 and the growth in six<br />
months ending July 2007 was at 25%. Out of the fortytwo<br />
licensed ISPs, thirty-two are currently operating.<br />
The subscriber base of incumbent NDCL has<br />
reached 8,68,046 whereas that of Spice Nepal is<br />
7,02,975 hence a total of 15,71,021 subscribers. The<br />
number of postpaid subscribers has gone down by<br />
1644. NDCL distributed 2,629 new lines in the last<br />
quarter whereas SNPL distributed 2,12,260 lines in the<br />
same period. SNPL now holds 44.75% of the market<br />
share, 8.75% more than the previous quarter whereas<br />
that of NDCL continued to decrease in this quarter as<br />
well, going down to 55.25%. The mobile customer base<br />
10<br />
See Samarajiva, Rohan (2007) Sri Lanka’s telecommunications commitments under GATS: Assessment and issues for the<br />
future, LIRNEasia, www.lirneasia.net<br />
11<br />
Ibid.