Govt passes minimum tariff edict

9 Dec 2009

The government of Cambodia has signed an edict setting minimum tariffs for the country’s mobile operators, the Phnom Penh Post reports citing Minister of Posts and Telecommunication So Khun. The new law was developed to end an ongoing price war that according to government was destabilising the sector. ‘We offered free market principles, but operators kept having conflicts with one another, so the government needs to have a hand in it,’ commented So Khun, adding that the government will suspend the licence of any operator that violates the minimum tariff set by the edict. It is expected that more information on the law will be unveiled later this week, following a meeting between the government and the nation’s cellcos. The edict is the second of two developed to bring structure to the sector after a dispute between market leader Mobitel and new entrant Vimpelcom-owned Sotelco (Beeline) earlier this year that led to accusations of call blocking and price dumping. The first, which regulates interconnectivity agreements, was passed on 5 October.