Mobile Communications Part 1.pdf

Mobile Communications
Legal Aspect
Prabash Semasinghe
LLM (Wales) LLM ( Colombo)
PaDiP in Intellectual Property Law

Law & Policy
From a Competition Law and Economic Law
Perspective

● The field of telecommunications law, policy, and regulation is a subset of the larger
fields of governance and regulation generally, and the regulation of media and
communications in society in particular.
● Telecommunications law and policy generally concern the ownership and control of and
access to large-scale electronic networks that connect people and businesses.
● These networks may be fixed (primarily involving the use of fiber and wires) or mobile
(primarily involving the use of radio frequency spectrum), but that terminology is
increasingly becoming antiquated as new technologies create products and services
that are more difficult to define.
●

Telecommunications law and policy generally involve the application of state power through
public regulation to secure three objectives:
(1) the promotion of competition in the provision of telecommunications services to end
users;
(2) ensuring that those services are widely available to all sectors of the public, including the
poor and those living in rural areas; and
(3) aiding citizens and consumers through the often complex choices associated with
telecommunications networks in the face of technological change.

Relationship Of The State To Telecommunication
● The story of telecommunications regulation is, ﬁrst and foremost, the story of a relatively
recent triumph of a set of governance values that (1) reject state ownership and
monopolies, and (2) promote competition and consumer choice.
● These values have been adopted by most national and regional policy organizations, the
end-user community, and the telecommunications providers themselves.
● Further, organizations such as the World Trade Organization (WTO) and the Organization
for Economic Cooperation and Development (OECD) have placed reform and better
regulation of the telecommunications sector near the heart of their missions.
● These values are so ingrained in this industry sector that it is now diﬃcult to imagine a
nation deciding to nationalize its telecommunications sector or otherwise limit
competition in some manner.

● In terms of policy orientation, the telecommunications industry is typically subject to regulatory control
instead of direct political control. The complexities associated with telecommunications regulation
often require sustained expertise that is commonly found in public regulation.
● In modern societies there is also a tendency to view direct political control over media and
communications systems with suspicion
● Accordingly, in this sector, policies may be originated at the political level, such as the enactment of
legislation to govern the sector, but they are often implemented and enforced by public regulators or
civil servants who act within a communications-themed ministry or government department.
● The European Union, for example, enacts policies to ensure that national regulatory authorities within
the telecommunications sector stand independent from their national governments

● It was common throughout the world prior to the 1980s for most
telecommunications providers to be state-owned, or in certain cases, private ﬁrms
with monopoly power. In those countries with state ownership, the concept of
modernized telecommunications regulation was unheard of: the state informally
regulated the conduct of the enterprise directly through its ownership and control.
●

Privatization And Securing Competition
● US Experiment with Competition law as a tool
In 1984, using competition law as the instrument, the US government settled a lawsuit against
AT&T and partially broke up AT&T’s then-existing monopoly on telecommunications services and
equipment. Subsequent regulatory and legal decisions at both the state and federal levels further
limited the reach of AT&T’s market power and the market power of the so-called regional Bell
operating companies that succeeded to AT&T’s local networks after the 1984 break-up
Finally, the Telecommunications Act of 1996, as well as legislation intended to promote the cable
television and wireless industries, resulted in the current situation where the goal of US
telecommunications regulation is to seek intermodal competition – competition between differing
platform owners.

Telecommunication liberalization.
● Imagine a large-scale telecommunications network, constructed and maintained for years by a
publicly owned or private monopoly. Attempting to change that situation by fostering a climate
where multiple private networks exist and interconnect with each other while still sharing certain key
facilities and resources is complicated. The picture becomes even more complicated when one
adds in other goals, such as permitting end-users to move from network to network without undue
delay or cost.
● at the same time as liberalization measures are taking effect, the telecommunications law and
policy often requires or encourages the network to be upgraded for better safety and data
transmission purposes
● The United Kingdom is generally credited as the first significant country to privatize the ownership of
its state-owned telecommunications firm. In 1984 the UK privatized British Telecommunications by
selling a 51 percent stake, and also established an independent telecoms regulator known as the
Office of Telecommunications, or OFTEL, a regulator that continued in existence until 2003, when it
was replaced by the new UK regulator, Ofcom.

Regulation At The Global Level
● At a global level, the pre-eminent institution of telecommunications regulation is the
International Telecommunications Union (ITU). The ITU, which has most of the world’s states
as members, serves mostly in a coordinating role in two key areas:
(1) radio-frequency spectrum, and
(2) standardization of telecommunications networks.
● It is perhaps in the area of radio-frequency spectrum where the ITU has had the most
influence, hosting world radio conferences and adopting the ITU radio regulations to which
ITU member states adhere. Certain inherently transnational applications that involve radio
spectrum usage, such as satellite and maritime communications, have greatly benefited from
ITU coordination. The ITU has not played a significant direct role in the process of
telecommunications liberalization.

Cont…
● One important milestone in the advent of telecommunications regulation at the global level
was that in February 1997, 69 members of the WTO agreed to open their basic
telecommunications networks to competition as of January 1998. The number of parties to
that landmark agreement has since grown, as has the number of countries that have adhered
to the associated WTO Reference Paper that sets forth telecommunications regulatory
principles, such as interconnection, universal service, regulatory independence, and fair
allocation of scarce resources like radio-frequency spectrum.
●

Achievements Of Regulation
● The question remains, therefore: has public regulation in the sector of telecommunications
been successful?
● One common critique of telecommunications regulation is that – because it ultimately aims
at producing the beneﬁts of a competitive marketplace – telecommunications regulation
ought to be replaced by the robust application of general competition law.
● However , Competition law alone,would probably not produce the outcomes associated with
the regulation of telecommunications networks. Nor would competition law have an ongoing
institutional mechanism to perform many of the common tasks found in telecommunications
regulation, such as the coordination of the usage of radio-frequency spectrum, or the creation
of technical standards that enable products and services to be made widely available.

Cont…..
● telecommunications regulation approach that is based on the underlying goal of promoting
competition where possible furthers the public interest. The introduction of competition has
lowered prices and increased choices for end-users of networks, without sacriﬁcing quality of
service or universality.
● Nonetheless, public regulators certainly make errors, and the history of telecommunications
regulation has seen numerous policy interventions that have proved unsuccessful, such as the US
attempt to promote competition by requiring telecommunications carriers to open portions of their
networks to competitors. Similarly, inter-carrier compensation policies, special taxes, and fees
adopted or required by telecommunications regulators all over the world often lead to retail service
fees or situations that confuse or victimize consumers.
● however, the world’s 20-year experiment with privatization and competition in the
telecommunications sector has largely been a successful one.

● Simply adopting laws and policies that legally permit new entrants to compete in the
telecommunications marketplace may be an insuﬃcient policy step if one desires robust
competition to develop. This is because large-scale networks are costly to construct (most being
developed initially as monopolies or state-owned ﬁrms) and – if true end-to-end communications
with all members of society are important – there needs to be a method to interconnect networks.
● Not only is interconnection important, it is also a means to permit end-users to migrate as
customers from one network to another, taking both their end-user equipment (e.g. their
telephone) with them, and also the means by which the network addresses them (e.g. a telephone
number).
● in a competitive system the transaction costs for someone to switch to a competing provider
should be kept as low as possible. If an end-user must purchase new equipment and change their
telephone number, it will impede competition.

Access To Telecommunications
● Telecommunications law and policy have taken on increasing importance in the overall
governance community, because telecommunications networks serve as the means by which
people access the Internet. Increasing the number of high-speed, so-called broadband,
connections between end-users and the Internet (enabling the use of video applications and
other bandwidth-intensive uses) has therefore become an important policy issue.
● Policymakers are also grappling with the terms and conditions of the relationships between
network owners, such as cable or telephone companies, and Internet application providers,
such as Google or Yahoo! The issue, often called network neutrality, is whether network
owners should be prohibited from discriminating among the various applications that run
over their networks.
●

Management of the Radio Frequency Spectrum
● The management of radio-frequency spectrum by society is a function usually delegated to
telecommunications regulators by policymakers. Working in conjunction with frequency
allocation plans agreed on an international and often regional level, telecommunications
regulators make decisions about
(1) the service and technical rules associated with particular frequency bands, and
(2) the terms and conditions under which that spectrum is licensed to individual users.
● The US innovated the unlicensed use of spectrum through its Part 15 radio regulations. For
years, low-power devices – often with consumer implications such as cordless telephones
and remote controls – took advantage of regulations by the Federal Communications
Commission (FCC) permitting unlicensed uses in certain frequency bands. The advent of WiFi
technologies in the 1990s changed the debate, however. The remarkable success of WiFi –
an unlicensed wireless technology – caused proponents of the spectrum commons to lobby
for the increased usage of unlicensed spectrum.

Consumer protection and privacy
● Because most telecommunications products and services are ubiquitous in society, a great deal of
telecommunications regulation covers consumers’ dealings in the marketplace, such as fair terms and conditions for
telecommunications contracts. Consumer-focused intervention also deals with policies relating to how
telecommunications networks connect people to public safety providers. For example, policies may be enacted that
require or enable telecommunications providers to give certain end-users (e.g. fire and rescue teams) priority during
public safety emergencies. Some policies directly target network end-users themselves, making it illegal to disrupt
telecommunications networks or use them in an annoying manner, such as telemarketing restrictions, or restrictions
on the use of autodialing devices.
● Telecommunications regulations now commonly describe what are the acceptable uses of customer-specific data by
telecommunications carriers with respect to marketing practices, sharing with third parties or affiliates of the carrier,
and cooperation with law enforcement organizations. Other forms of telecommunications regulation deal with the
fact that networks are physically intrusive in society. Accordingly, regulation may cover, for example, terms and
conditions for the emplacement of wireless antenna devices, or the sharing of conduit or utility pole space among
service providers.

Further reading
● European Union (2002). Directive 2002/21/EC of the European Parliament and of the Council of 7 March
2002 on a common regulatory framework for electronic communications networks and services.
● Farrell, J., & Weiser, P. J. (2003). Modularity, vertical integration, and open access policies: towards a
convergence of antitrust and regulation in the Internet age. Harvard Journal of Law and Technology, 17(1),
85–134.
● Geradin, D., & Kerf, M. (2003). Controlling market power in telecommunications: Antitrust vs. sector specific
regulation. Oxford: Oxford University Press.
● Wu, T. (2003). Network neutrality, broadband discrimination. Journal of Telecommunications and High
Technology Law, 2, 141–178.

Electromagnetic Spectrum
● Radio technologies use electromagnetic waves to send information in free space. Many
different radio applications can be used at the same time by employing waves of
different frequency.The radio spectrum is defined as that part of the electromagnetic
spectrum at frequencies between 3 kHz and 300 GHz.
● Radio frequency spectrum is one of country’s key natural resources of great economic
value as a result of its direct application in telecommunications, broadcasting, military,
and scientific research in addition to a range of other socioeconomic activities such as
social services, law enforcement, education, healthcare, transportation, etc. As a result,
many industries depend heavily on the efficient utilization of radio frequency spectrum.
● Spectrum Management is the combination of administrative and technical procedures
necessary to ensure the efficient operation of radio communication equipment and
services without causing interference to other radio systems. The goal of spectrum
management is to maximize spectrum efficiency and minimize interference.

● The regulation of spectrum use on a global basis is a core responsibility of the Radio Communication Sector of the
International Telecommunication Union (ITU). The mission of the Radio Communication Sector( ITU-R) is to ensure
efficient, equitable, rational, and economical use of the radio frequency spectrum by all radio communication
services, including use of satellite orbits and to conduct studies and adopt recommendations on radio
communication matters.
● The ITU holds the international World Radio communication Conferences (WRC) normally held every three years
.The WRC is the highest international body regulating the use of the radio spectrum. The WRC decisions form the
international Radio Regulations that specify the allocation of frequencies to different forms of radio services) and
conditions for deployment. The Radio Regulations are appended to the ITU Convention which has ITU treaty status.
The Radio Regulations are revised by WRCs time to time

Telecommunications Regulatory Commission of Sri Lanka
● By virtue of Section 10(a) of the Sri Lanka Telecommunications Act,
Telecommunications Regulatory Commission of Sri Lanka (TRCSL) is the sole lawful
body in Sri Lanka to manage and control the use of the radio frequency spectrum and
matters relating to the stationary satellite orbit and have the power where it deems
necessary to withdraw or suspend its use or prohibit any such use of frequencies.
● The Commission is also vested with authority under the Section 22 of the Act to issue
licenses for the users of radio communication services, conserve the radio spectrum
and enforce compliance with rules to minimize electromagnetic disturbances
produced by radio communications installations.

National Frequency Allocation Table (NFAT)
● National Frequency Allocation Table (NFAT) is derived from the international frequency
allocations of Article 5 of the International Telecommunication Union (ITU) Radio Regulations.
and is also consistent with regional allocations. The Radio Regulations are revised by the ITU
World Radiocommunication Conference(WRC), normally held every 3 years. NFAT shows all
frequency bands for Sri Lanka with services allocated to those bands.
● As a treaty signatory, the TRCSL takes an active role in the ITU-R in order to ensure that
international policies are consistent with the country's radio communication regulatory
frameworks and that our national interests are adequately protected.

Process of assigning frequencies
This is open, transparent and non -discriminatory for all users;
# Issue frequency assignments in a timely manner and in accordance with published
assignment criteria, in support of the overall licensing process;
# Frequency assignments will be made for all users is in accordance with the National
Frequency Allocation Table(NFAT);
# Simple administrative processes is employed for the assignment of frequencies where
demand for use of spectrum does not exceed supply. The frequencies will be assigned to the
users on a first-come first-served basis;
# Scarce and highly valued spectrum where demand exceeds supply will be assigned to the
users through market-based spectrum management techniques such as auctions or
competitive bidding or spectrum trading.

Frequency Co-ordination
● Frequency Coordination is a technical and regulatory process which is intended to remove
/mitigate radio frequency interference between different radio systems which utilise the same
frequency for operations.
● TRCSL carries out national frequency coordination to ensure harmonious sharing of
frequencies by various users and services. It also performs international and regional
frequency coordination to avoid harmful interference of frequency users in different
administrations.
● Frequency assignments, which are capable of causing interference to neighbouring
countries, are regularly submitted to the ITU’s Radiocommunication Bureau for purposes of
coordination with other countries and then registered in the Master International Frequency
Register

In accordance with Sections 5(o), 5(q) and 5(v) of the Sri Lanka Telecommunications Act No. 25
of 1991 as amended TRCSL has statutory duty to:
1. specify technical standards and procedures for the provision of telecommunication
services;
2. approve types of telecommunication apparatus which may be connected to a
telecommunication system;
3. make and enforce compliance with rules to minimize electro-magnetic disturbances
produced by electrical apparatus and all unauthorized radio frequency emissions.

● Radio and Telecommunications Terminal Equipment (RTTE) which is to be
used in Sri Lanka should comply with a set of national and international
regulatory standards and requirements for compatibility and safety.
● Type Approval ensures that the RTTE conforms to appropriate national and
international standards and type approved RTTE would not cause
interference to other communication systems or pose health and safety
hazards to consumers.

Regulatory Guidelines for the Use of 2.4 GHz and 5GHz Bands to Deploy Outdoor Wireless Local Area
Networks (WLAN)
https://trc.gov.lk/images/pdf/RegulatoryGuidelinesForOutdorWLAN.pdf
● Access to the spectrum will be on shared basis. There will be no exclusive
assignment to any individual or organizations, whether for private, public or
commercial use.
● There will be no individual frequency planning or co-ordination function
undertaken by the Commission but the licensee is obliged to furnish details of
the Wi Fi access points two weeks prior to deployment and shall keep
accurate installation records of the Wi-Fi access points. The Commission
reserves the right to reject any deployment if there is potential to cause
harmful interference to other systems by the deployment.

Cont….
● The operation of WLAN shall be on a secondary use basis, whereby WLAN
shall not claim any protection, and shall not cause any interference to other
Radio services in the same bands. No interference shall be caused to any
systems operating in any of the primary allocations in the band (e.g. Fixed
Satellite Services and Radiolocation).In all cases of harmful interference, the
licensee of WLAN shall be required to cease the operation of the equipment.
● Wide Area deployment will not be allowed on the 2.4G and 5G bands,
maximum coverage or transmission distance from a single hotspot should not
exceed more than 200 meters. Transmit power, antenna height and gain
should be selected in order to keep emission within stipulated distance.

Cont…..
● The use of the 2.4G and 5G bands is on a non-interference and unprotected basis.
All equipment to be deployed should be type approved by the Commission.
● In certain cases of outdoor WLAN, the Commission may impose further technical
restrictions on the air interface to ensure interference free operation.
● Backhaul Network For the purpose of connecting Wi-Fi hotspots to the nearest
switch/router for onward connection to the licensed Systems (Internet or other
national networks), the under-listed point-to- point backhaul methods will be
permitted.
1. Fixed Wireless Access
2.Leased Backhaul Links
3.High Capacity DSL/ADSL links
The licensee shall not have the right to establish its own new radio links to connect
Wi-Fi base stations to the licensed Systems. The licensee shall obtain these links
from the Operators who are licensed by the Commission for this purpose

Interpretations
Wireless Local Area Network (WLAN) A wireless local area network (WLAN) is a
wireless computer network that links two or more devices using a wireless
distribution method (often spread-spectrum or OFDM radio) using IEEE 802.11
family of standards.
Wireless Fidelity (Wi-Fi) is a wireless networking technology that allows
computers and other devices to communicate over a wireless signal.
Wi-Fi Hotspot : means a wideband transmission system using spread spectrum
modulation techniques (and for the avoidance of doubt, the use of the label “Wi-Fi”
in this definition shall not imply any particular standard or technology);

Services provided by the TRC
● Aeronautical Services
● Amateur Services
● Broadcasting Services
● Cellular Services
● Data / Telemetry Services
● Fixed Services
● Land Mobile Services
● Low Power Device
● Maritime Services
● Satellite Services

Cellular Telephone Services
● Cellular telephone services in Sri Lanka began in 1989 as first generation (1G) analog network
based on the Total Access Communication System (TACS) standard in the 900MHz band. Analogue
cellular services in the 800MHz band were introduced in the early 1990’s based on the Advanced
Mobile Phone System (AMPS) standard. Subsequently, the second generation (2G) digital system,
Global System for Mobile Communication (GSM) was introduced in the mid 1990’s to overcome
the capacity limitations of the analog systems. The first spectrum allocation for GSM was made in
the 900MHz band.
● 2G mobile networks can only cater for voice and low speed data (9.6kbps) transmissions while
second and half generation (2.5G) services such as General Packet Radio Services (GPRS) can offer
transmission speeds up to 15kbps to meet the market demand.
● Customer demand for high speed services such as video calling and high speed Internet access lies
with the third generation (3G) systems which will offer data rates up to 2 Mbps and hence will be
able to deliver enhanced multimedia and high resolution video services.

● By considering the significant user benefits in 3G systems, the Telecommunications
Regulatory Commission of Sri Lanka (TRCSL) facilitated the introduction of the 3G
mobile services in appropriate time, to be the first in South Asia to offer 3G services.
The evolving technology for 3G is called High Speed Packet Access (HSPA), 3.5G
systems, also deployed on top of the existing 3G networks, and become the first in
South Asia to offer 3.5G services.
● Sri Lanka introduced 4G technology in 2013. And thereafter TRCSL regulates the
value added services provided by such cellular mobile oparators.

Value Added Services Guidelines for Licensed Mobile Service Operators
Refer : https://trc.gov.lk/images/pdf/MobileVAS_Guidelines.pdf
Objectives
• Ensuring consumer protection in terms of validating VAS subscriptions
• Ensuring a practical mechanism for unsubscribing VAS for subscribers.
• Introduction of Billing / Dispute Management process for consumer
complaints for VAS

Cont…
● Guidelines
This guideline is applicable for licensed mobile operators and should be adhered
to strictly and any noncompliance would be deemed as a violation of the directives
provided for consumer protection by the regulator in terms of VAS
●

VAS Information
Operator should make available the VAS information in all three languages viz; Sinhala, Tamil and English
and allow subscriber to choose the VAS information in a preferred language.
Before activating any type of VAS (USSD, IVR, SMS, Web based, etc.), operator should inform following
information to the subscriber using subscriber’s preferred language.
(i) VAS name
(ii) VAS terms and conditions (The direct link to T&C should be made available)
(iii)VAS charges including TAX (Billing Frequency if Daily, Weekly, Monthly etc.)
(iv) Subscription tenure of service (Daily, Monthly, Weekly etc.)
(v) Deactivation method
No VAS may be promoted as being free if it involves any charges whatsoever to the consumer even at a
later date. There should be no hidden charges. Any associated charges for services rendered should be
clearly disclosed upfront at the point of subscription by the subscriber.

Activation by Subscriber
● Immediately after successful activation of any type of VAS (USSD, IVR, SMS,
Web based, etc.) operator should send activation success confirmation SMS
(using subscriber’s preferred language) which should contain.
(i) VAS name
(ii) VAS terms and conditions (The direct link to T&C should be made
available)
(iii)VAS charges including TAX (Billing Frequency if Daily, Weekly, Monthly
etc.) (iv) Subscription tenure of service (Daily, Monthly, Weekly etc.)
(v) Call to Action: “Confirm to proceed” Seek subscriber confirmation through
a return response through the applicable communication method.

Confirmation of Service
Based on a successful validation of activation of a service by a subscriber as per
process noted earlier , a reconfirmation should be initiated with an OTP
mechanism (One Time Password) for reconfirmation of the subscription by the
subscriber.
Please note the OTP verification is mandatory for any type of VAS activation. The
OTP could be a 4-digit code that is generated randomly

Naming Conventionof the VAS
● Operator shall use the same name of the VAS that they have filed/will be
filing in the future with TRCSL in all subscriber information sources including
advertisements viz; OBD call, IVR, Activation successful confirmation SMS,
Un-subscription successful SMS, Selfcare app, Operator web site etc

Subscriber consent for activation
If the operator provides the VAS directly with their own content.
• First and second consent of the subscriber for activation of VAS should be obtained by operator through
a dedicated consent gateway, which is owned by an Operator.
• Operator is not allowed to remove/delete first and second consent logs from the systems while a service
is active and even after the subscriber de-activates the subscribed VAS. Log information should be
retained for a minimum period of one (01) year or as deemed fit by the operator.
• Operator should keep all consent logs for reference/audit purposes and should be made available to
TRCSL when requested.
• Operator should provide VAS information including logs if requested by the subscriber on a disputed
service.
• Charging should only be applicable after receiving both confirmations.

Cont…
If the operator is providing a VAS with the content obtained from a third-party content provider:
● First consent of the subscriber shall be obtained and stored as a log in the dedicated
consent gateway owned by the third-party content provider as well as the operator.
● The second consent of the subscriber shall be obtained and stored as a log in a dedicated
consent gateway owned by the operator.
● Operator is not allowed to remove/delete first and second consent logs from the systems
while a service is active and even after the subscriber de-activates the subscribed VAS. Log
information should be retained for a minimum period of one (01) year or as deemed fit by
the operator.
● Operator should keep all consent logs for reference/audit purposes and should be made
available to TRCSL when requested.
● Operator should provide VAS information including logs if requested by the subscriber on a
disputed service.
● Charging should only be applicable after receiving both confirmations.

Renewal of VAS by Subscribers
All activated VAS enrolled to by the Subscriber, should be followed up with a
message at each time the subscriber is charged based on the opted billing cycle
(Daily, Weekly, Monthly). The message should include a link to unsubscribe the
service based on the discretion of the subscriber. This message is mandatory to
be sent to all subscribers at the point of each recursive billing charge initiated on
the subscriber. This should be retrospectively applied to all VAS activated previous
to this guideline on subscribers.

Insufficient balance to activate the VAS (Pre-paid)
1. For New VAS Activations-Operator shall not activate a VAS if the account balance is insufficient to
activate the VAS.
2. For Continuation of subscribed VAS
(i) For daily billing – Operator should not deduct the VAS charges for the period of zero account
balance. Daily charge should be deducted from the day that the account had been topped up.
(ii) For weekly billing - Operator should not deduct the VAS charges for the period of zero account
balance. Weekly charge should be deducted for seven days from the day that the account had been
topped up.
(iii) For monthly billing- Operator should not deduct the VAS charges for the period of zero account
balance. Monthly charge should be deducted for one calendar month from the day that the account
had been topped up.

Non-sharing of subscriber information.
The Operators shall take all necessary organizational and technical measures
and procedures to preserve and protect the confidentiality of information, and
data of subscribers. Further, Operators should not share subscriber’s
ownership details including connection numbers with third-party content
service providers without the express consent of the subscriber

Activation/Deactivation commandof VAS
The activation/deactivation command should be common for any kind of VAS and
could be operator specific. Any deactivation should be completed on a maximum
of 1 hour.

Promotional SMS of VAS
Promotional SMS for any kind of a VAS should include following information.
(i) VAS name
(ii) VAS terms and conditions (The direct link to T&C should be made
available) (iii)VAS charges including TAX (Billing Frequency if Daily, Weekly,
Monthly etc.) (iv) Subscription tenure of service (Daily, Monthly, Weekly etc.)
(v) Deactivation method Operator should not continue to charge for a VAS on
the case of a free trial period offered as part of a VAS promotion.
On the completion of such free trial the standard process of subscriber activation
as detailed on section 3.1.2.1 should be followed.

Specific Conditions: 1. Web based VAS
(i) 3rd Party Banner Based Activations: Under no circumstances should operators
allow 3rd party web banner-based subscriptions, and no such entities should be
allowed to bill subscribers for services unless such services are directly promoted
as VAS by the operators based on above approved mechanisms taking full
responsibility for such service offerings.
(ii) The Subscription or Pay-per-use Buttons placed on Content Portals shall
mention all charges clearly with a link to the full Terms and Conditions of the
Service. Any such carrier billing utilized through 3rd party native applications / web
applications; the operators should take maximum measures to validate such web
applications / native mobile apps to ensure that such providing entities adhere to
stringent service guidelines without a discontinuation. It is imperative that the
operators implement a validation framework for all such 3rd party apps / portals
that carrier billing facilities are provided for.

Cont….
(iii) For Over-The-Top (“OTT”) service providers where the services are consumed either onnetwork OR
off-network (E.g. Netflix, Spotify, Google DCB, Insurance) and where Carrier Billing is only used as a
Payment Method, it shall be the responsibility of the Operator to enter into an agreement and implement a
validation framework as noted above in sub section (ii) with such service providers subsequent to careful
evaluation of the service provider’s charging models and authenticity of the company prior to engagement.
(iv) All Content Portal Services (owned by operators) consumed on-network shall provide a suitable
method of double-confirmation before the customer is “opted-in” to a subscription service.
(v) Customer usage of such on-net service shall be monitored by all operators and it shall be the
responsibility of each operator to apply a suitable cleansing process to remove long-term inactive
customers either by their own initiative or through the respective service providers.
(vi) Operator should make sure that the third-party content providers have proper algorithms to identify
subscribers who have not utilized their VAS after activation.
(vii) The operator is required to identify the capability of user device before activation of VAS as some
devises will not support the VAS. The operator is required to obtain the initial subscription requests from
the same channel used to consume the service (E.g. If it’s a web-based service subscriber has to arrive at
the web portal to initiate the subscription).

IVR based VAS
(i) Charges for IVR calls should be indicated to subscriber at the beginning of the
call.
(ii) Exit option of the IVR call should be indicated in the first loop. Inner loop should
have exit option to main loop or complete exit.
(iii) Deactivate/Unsubscribe option should be available in the main loop of IVR and
any deactivation should be completed on a maximum of 1 hou

3. USSD based VAS
If USSD used to deactivate the service, the unsubscribe option should be
available in the main loop of USSD, and any deactivation should be completed on
a maximum of 1 hour.

VAS Complains/Disputes/Redress.
(i) For VAS complaints a dedicated team should be assigned and required options added to
customer care IVR systems to have the option accessible on the main menu.
(ii) For Pre-paid subscribers, If the subscriber disputes, and operator identified that VAS was
activated without his/her consent the amount charged shall be refunded to the subscriber within
three working days (for per day chargeable VAS) and within five working days (for other VAS) from
the reporting date of the complaint.
(iii)For Post-paid subscribers, If the subscriber disputes, and operator identified that VAS was
activated without his/her consent the amount charged shall be refunded to the subscriber 8 within
three working days (for per day chargeable VAS) and five working days (for other VAS) from the
reporting date of the complaint. This correction should appear in the bill of the following month.
(iv) In case of any kind of operational failures (system down, link fail etc.) of VAS and operator
identified that the users had been charged during the failure, operator should refund appropriate
amount for affected users mentioning the reason equivalent to the service down time.
(v) Operators are required to submit to TRCSL the refunding mechanisms for Item (iii) above and
should obtain approval before implementation.
(vi) Operators are required to submit a comprehensive report on consumer complaint resolutions /
status at the end of each month according to the format provided by TRCSL.

Revalidation of Existing Active VAS of Subscribers
• All operators should take mandatory steps to ensure that all subscribers who has opted for any VAS
(including 3rd party web banner-based subscriptions) is sent a message with a consolidated list of all
such VAS opted in by the subscriber for their information with an option to un-subscribe based on the
validation drive to be commenced at a date prescribed by the regulator. Based on the revalidation
drive, a comprehensive report should be provided to the regulator on format prescribed of all
discrepancies notified by subscribers.
• Based on above revalidation process, a mechanism should be introduced for subscribers to record
any discrepancy they may want to escalate to the operator. Based on such discrepancies notified, a
dedicated team should be setup by all operators to rectify / consider complaints made by any
subscriber.
• Furthermore, a short code / SMS service should be introduced to ensure that a subscriber could
check on all VAS subscribed at any point and an easy mechanism to unsubscribe. This service should
be implemented within thirty (30) days from the date of receipt of this guideline.
• It is mandatory that the VAS services that are subscribed should be easily accessible on Self Care
Apps / Customer Web Portal for viewing services that are opted for and to provide unsubscribe
facilities.

WTO and Competition Law and policy involving Mobile
telecommunication

Telemex case
[1] Mexico- Measures affecting Telecommunication services. WTO Dispute DS204
Refer :
https://www.powershohttps://www.powershow.com/view/151271-ZGU3M/MEXICO
_TELECOM_TELMEX_CASE_powerpoint_ppt_presentationw.com/view/151271-Z
GU3M/MEXICO_TELECOM_TELMEX_CASE_powerpoint_ppt_presentation

U.S. MEXICO - TELECOM SERVICES HISTORY
● From 2000-2004 U.S. requested consultations
Mexico at WTO over its measures affecting telecom
services
● Mexico refused to dismantle barriers in its
telephone market
● U.S. companies have long complained they were
unable to use alternative channels for carrying
their calls to Mexico

TELMEX HISTORY
Telefonos de Mexico (NYSE TMX Mexican TELMEX)Telecom monopoly providing telephone (landline/ mobile) service
Internet access to Mexico,
South North America.
CEO Carlos Slim, 3rd richest man in world 30 billion
1947 Created by private investors. 1972 Govt bought Telmex and turned into a monopoly very little infrastructure
development
1990 Govt sells Telmex to Carlos Slim and other investors.
They Created an extensive well-developed
fiber optic network in Mexico

THE ORIGINS OF THE CASE
● Telmex set astronomically high interconnection rates and made huge profits
● About 80 of all cross border calls originate in U.S. (family, friends, business)
● High volume of calls from U.S. to Mexico (second to Canada)
● U.S. companies and consumers have paid in excess of 1 billion since 2000
● Both have long complained about the problem

MEXICAN LAW
● Federal Telecommunications Law
● Under Mexican laws, the largest carrier of outgoing calls to a particular
international market, has the exclusive right to negotiate the terms and
conditions for the termination of international calls in Mexico that apply
to any carrier between Mexico and that international Market

WTO AGREEMENTS INVOLVED
● WTO Agreements Violated
● Section 1.1, 2.1 and 2.2 of the Telecommunications Reference Paper
● Articles 5a and 5b of the GATS Annex on Telecommunications

U.S. ARGUMENTS
● Three Main Arguments
● Mexico failed to ensure that Telmex provide services correctly
● Mexico has not maintained appropriate measures against anti-competitive
practices
● Mexico has failed to ensure access and use of its public communications
transport networks and services

U.S. POSITION BRINGS MEXICO TO WTO IN 2000
● U.S. argued Mexico violated GATS agreement
● Mexico was anti-competitive and did nothing about Telmex practices
against competition. Gave them exclusive authority
● Mexico enacted laws that denied or limited market access
● Mexico did not ensure U.S. carriers could connect their intl calls to
Telmex at cost based rates
● Failed to allow U.S. telecom suppliers to lease phone lines

MEXICO'S POSITION
● Aug. 2000 Mexicos government conceded to some of the requests of
U.S. during consultations
● Reduced domestic interconnection rates and introduced measures to
regulate Telmex
● However, the Mexican govt failed to address
The anticompetitive nature of its telecommunications regime
Did Not reduce interconnection rates Telmex charged U.S. operators
●

TIMELINE OF US-MEXICO TELECOM CASE
● Oct. 2000 First Consultations
● Jan. 2001 Second Consultations after Mexico issues new measures
● April 2002 Panel established
● April 2004 Panel releases final report
● June 2004 DSB adopts report and no appeal
● Aug. 2004-Aug. 2005 Mexico begins adopting measures that were required

PANEL DECISION -April 2, 2004
Mexico violated its GATS commitments because it failed to
● Ensure interconnection at cost-oriented rates
● Maintain appropriate measures to prevent Anti-competitive practices
● Ensure reasonable and non-discriminatory access
to and use of telecommunications networks

PANEL DECISION April 2, 2004 contd….
Mexico did not violate its GATS commitments for
● Cross-border telecom services supplied on a non-facilities basis and
may prohibit U.S. carriers from using leased lines in Mexico to
complete calls originating in the United States

IMPLEMENTATION
● June 1, 2004 Mexico and the United States reached an agreement
● July 2005 Mexico enacted new rules for international long distance
● Aug. 31, 2005 Mexico announced compliance at DSB meeting
●

IMPLICATIONS BEYOND TELECOMMUNICATIONS
● Affect on other network services such as
● Electricity
● Transport services
● Postal
● Courier services

OUR PROPOSAL (Vide : proposal of the writers of the PPT shown in the link)
● Drop Mexico from NAFTA
● Pressure international partners
● Boycott products from Mexico
● Negotiate with President of Mexico
● Subsidize U.S. companies to establish market
presence in Mexico
● Freeze Telmex assets in the U.S.
● Levy fines on any subsidiaries in the U.S.
● Increase tariffs/duties on products from Mexico

Sri Lankan Telecommunication Industry and the issues relating to competition law
The Sri Lanka telecommunication Act No 25 of 1991 as the major piece of legislation on
telecommunication, unfortunately does not provide a viable provision for anti competitive measures.
However In section 4 which stipulates the general objectives of the regulator , subsection (d) comes with
an object which can be widely interpreted even to include the anti competitive measures. It is as follows,
“To maintain and; to promote effective competitive between persons engaged in
commercial activities connected with telecommunication and promote efficiency and
economy on the part of such persons;”

In Sri Lanka, the Commission controls the telephone charges, packages and the other
marketing strategies of the competitors in order to avoid anti-competitive measures and
to maintain a healthy competition. The dominant players have to act more cautiously
than the small players. The regulator is also more vigilant about the dominant players
as they can cripple a small competitor by way of small adjustment of their profits such
as predatory pricing

Though Sri Lanka liberalized the telecommunication industry it has faced new difficulties with the
high competition between the operators. Therefore need of an efficient scheme of interconnection
was highlighted to allow subscribers to be connected where there are multiple operators. When
two independent operators interconnect, each operator has to pay the other for calls terminating. In
the telecommunication industry the cost of such charge charges mush higher and therefore a new
entrant cannot survive in the market. This situation led to a point which that the new and small
players cannot enter and survived in the Sri Lankan market.

Interconnection Rules 2003
To regulates the emerging issues in competition interalia , Interconnection rules were incorporated
in March 2003 In the fourth Protocol to the General Agreement on Trade in Services , WTO
provides the commitments to the signatory countries ,in respect of telecommunication
interconnection. It stipulates the commitment of non discriminatory terms, rates and of a quality no
less favorable than for the incumbents’ own property. Having considered the Sri Lanka’s
commitment to the WTO agreements, those telecommunication principles were embedded in the
Interconnection rules 2003.
Refer : https://trc.gov.lk/images/pdf/ic_rules.pdf

The Rule 5(4)
This stipulates that “ interconnection arrangements shall be efficient and non
discriminatory ‘and the term and conditions subject to which interconnection
services are provided, price and non price , shall represent the worlds ‘best
practices’ ”. This is to comply with the aforesaid WTO commitment.

Rule 5(9) and 5(11)
attempt to prohibit the agreements in restrictive nature can be seen in Rule 5(9) and 5(11) of said
interconnection Rules 2003. The Rule 5(11) is as follows,
“Notwithstanding any agreement reached between the operators, as regards the terms and
conditions of the interconnection agreements, such agreement shall not come into effect until a
certificate of conformity is issued by the Commission to the effect that such agreement is in
conformity with the rules.”

Determinations under the rules
Pls see : https://trc.gov.lk/images/pdf/08_Determination.pdf.
In 2010 few Mobile communication including SLT providers requested the TRC to
abolish the then existing call termination charge or the interconnection charge.
However Dialog and Lankabell opposed to it and there was a determination on
that by the TRC under the said set of Rules of 2003.

Mobile Communications Part 1.pdf

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