Apparently in response to an on-going economic crisis, the Telecommunications Regulatory Commission of Sri Lanka has raised mobile and fixed network prices 20 percent, starting September 5, 2022.
The virtually-predictable outcome is that subscriptions and usage will decline, as the shock of higher prices causes demand to fall.
Charges for pay-TV services will be raised by 25 percent. The unusual move apparently is a way of compensating for a deteriorating currency triggered by a near-collapse of the Sri Lanka economy.
Facing its worst economic crisis ever, some say “everything that could go wrong with the economy has: Sri Lanka faces budget and current account deficits, hyperinflation, a devalued currency and a huge sovereign debt that it can no longer pay.”
source: Telecommunications Regulatory Commission of Sri Lanka
It might be argued that a country with a food crisis, debt repayment crisis, hyper-inflation and a devalued currency has bigger problems than the price of using mobile and fixed communications. But it also is true that hyperinflation drives up prices of every good and service.
Most service providers would prefer higher prices. But few would want higher prices driven by runaway inflation and economic collapse.
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