“Public office is not for perpetuity’

Former Director General, Telecommunications Regulatory Commission (TRC) Kanchana Ratwatte, says he quit because he thought it was high time to step down. He is of the opinion that public office is not for perpetuity. “There is always a time when you should get on with it. I achieved the purpose that I wanted to achieve so I thought it was time,” he revealed to The Bottom Line in an interview.

At the time Ratwatte took over at the TRC, the average call charge was Rs. 12. “Today, when I am leaving the TRC, the average call is at Rs. 5. This is my most significant achievement,” he pointed out. The number of subscribers has also doubled during his tenure, which he attributes to the removal of the entry barrier and reduced call charges.

As for the ultimate goal, he asserted, “Liberalisation is what we are looking at.” However, he said one needs to take into consideration that the companies are meant to make profits. “Towards this end, a robust regulatory environment and liberal regulatory policies are required in the short and long-term,” he added.

Q: What are the main issues facing the TRC in carrying out its work?

A: I had a very independent and good tenure during my period due to the fact that it came directly under the President and there was no interference in the work. We could act very independently and we also had a very good Chairman in Lalith Weeratunga. All these added up to a very healthy, competitive environment, which facilitated a lot of progress.

We have a good professional staff of 200, which is more than adequate, and all the resources are available. If you take the figures, we have reached almost Rs. 3 billion so there is no issue of resources. It’s all readily available.

Q: During your tenure at the TRC, what do you consider your best achievement?

A: Well, I would look at several phases. One of the biggest challenges when I took over in 2005 was the exorbitant prices of mobile communications. At that time the average call charge was Rs. 12. Today, when I am leaving the TRC, the average call is at Rs. 5. This is my most significant achievement.

I must also mention the introduction of 3G, the introduction of WiMAX and the consolidation of CDMA. The introduction of CDMA was done by my predecessor. Also, most importantly, the numbers doubled. We are looking at 10 million subscribers at end December 2007 as opposed to five million subscribers in December 2005. This is also another significant achievement.

I would say that this could be attributed to the fact that the entry barrier was removed and call charges came down from Rs. 12 to Rs 5. More people found it accessible and more people found that a phone is no longer a luxury.

Broadcasting and television stations have increased as well, during this period. When it comes to amateur radio, in the last three months or so we have adopted Australian and British standards, which are much more liberal.

Today you don’t need to maintain such strict standards because of the availability of the computer. We have reduced the standards in order to attract more people into amateur radio.

Q: What impact do you think the arrival of a fifth mobile operator will have on the industry?

A: That’s a very positive move. At the end of 2005, if you look at the number of base stations covering the country, it was in the range of 800. Today you find that all the operators have become very enthusiastic. At the time there was at least one local operator who had not properly invested in the network. Now they have all been activated because of the arrival of the fifth operator. It has had a very good impact in the market and if you look at the prices, they keep coming down everyday. This is healthy competition.

Q: The TRC is also responsible for responding to consumer complaints and conducting investigations. Is this done in a satisfactory manner?

A: I would say yes and no. It all depends. The TRC receives an average of 200 consumer complaints per week. It is not always that these complaints have been resolved satisfactorily. Due to some reason, there are disputes on both sides.

For instance, when it comes to a bill, the operator feels that certain calls have been taken and they are listed out in the computer – technology is such that you cannot cheat the system. However, having said that, the consumer feels that there are calls that the consumer has not taken but been billed for. Such issues do create problems and bottlenecks at times, which we are unable to resolve satisfactorily.

But at the same time, we have settled outstanding disputes as well. It all depends on a case by case basis where we could intervene. There are instances where payment has been taken for a connection which has not been given on time – these are instances where we could directly intervene and resolve the problem. But when it comes to billing disputes, it is a bit of a problem. Such issues keep pending and accumulating.

Q: Is there scope for expansion in the telecommunications industry?

A: Of course there is. About two months ago, we were somewhere in the 155,000 range in data connections, including ADSL, wireless and all forms of data connections. This is an area where we should, as early as possible, get to somewhere around 500,000.

Q: What is your opinion on CDMA technology and the impact it has had on rural communities?

A: It was a fantastic move. It was a very conscious decision made by my predecessor. The intention was to come in as a fixed operator, instead of coming in as a mobile operator. CDMA technology could be used either as a fixed or mobile connection.

They took a very conscious decision that it should be a fixed operation. I think that was a very wise and prudent move. CDMA has helped double the figures of fixed lines in the country.

Q: What steps need to be taken to further uplift the telecommunications industry?

A: Liberalisation is what we are looking at. But having said that, we need to take into consideration that the companies are meant to make profits – I do not believe that the role of the regulator is to turn a profit-making venture into a loss-making venture.

It is not a case of reducing prices all the time. It is a case of new technology coming in, new investments coming in, and the companies doing better. Towards this end, a robust regulatory environment and liberal regulatory policies are required in the short and long-term.