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Cablegate: Licensing Conditions in the Telecommunications

This record is a partial extract of the original cable. The full text of the original cable is not available.

071736Z Jul 05

UNCLAS COLOMBO 001183

SIPDIS

EB/CIP TIMOTHY C. FINTON
USTR JONATHAN MCHALE/PAUL NEUREITER

E.O 12958: N/A
TAGS: ECPS ETRD CE
SUBJECT: LICENSING CONDITIONS IN THE TELECOMMUNICATIONS
SECTOR IN SRI LANKA

REF: STATE 114687

1. In Sri Lanka, the Telecommunications Regulatory
Commission of Sri Lanka (TRCSL) charges fees in
connection with licensing fixed line services in excess
of what is required to cover administrative expenses.
The level of fees depends on the type of license to be
issued and licensing conditions. The purpose of the
fees is to generate government revenue and to contribute
to telecommunications infrastructure development. TRCSL
issues countrywide licenses that are not limited to a
given geographical area. However, in some cases, the
operators need to fulfill obligations regarding rural
telephony development. TRCSL has so far not revoked
licenses for not meeting initial obligations. TRCSL
issues both facilities based and non-facilities based
licenses. According to industry sources, license fees
are for the most part reasonable and fairly assessed.

2. In some instances, the TRCSL imposes capitalization
requirements to ensure rural rollout and other commitments
related to services. The regulator does not issue
geographical area based licenses.

3. The TRCSL does not require build-out investments.

Lunstead

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