Sri Lanka continues to see a decline in telecommunications development charge (TDC) revenue, which is meant to be allocated towards investments in telecommunications infrastructure in rural unserved and underserved areas, due to a decline in international call charge revenue, TRCSL Director Air Vice Marshall Bandula Herath said, speaking to the Committee of Public Finance on Monday (17)
“Under the universal service fund, there is something called the telecommunications development charges, TDC. This is used to invest in telecommunications infrastructure facilities in underserved and unserved areas,” Herath said, addressing the COPF.
“In collecting charges for this fund, through international call charges, we see a decline in revenues from international calls, because data is used for the most part.” According to Herath, the fund and its subsequent allocations are meant to incentivise telecommunications service providers to build towers in rural underserved and unserved areas across the island.
“This is used to invest in telecommunications infrastructure facilities in underserved and unserved areas. Due to the low income that is generated in those areas for service providers, they are typically discouraged from operating in those areas. To develop those areas, as an encouragement, we use this (fund) as the TRCSL.”
He further elaborated that the fund is utilised to identify areas that are in need of servicing, for which each tower built in the area by telecommunications service providers has a 50% contribution from the fund, up until last year.
“This year, the guidance for this had been changed and 75% of contributions had been allocated. In the last two years, we have contributed to the building of 79 towers, under the programme of expanding telecommunications in rural areas, for which Rs. 1.3 billion has been allocated.”
Herath added that for the next five years, the President, within his capacity as the Minister of Digital Economy, has proposed to allocate Rs. 17.5 billion, through this fund, for expanding telecommunications in underserved, rural areas.