Driving Governance & Risk
The telecommunications, digital and fintech industries remain in a constant state of flux due to dynamic – and often disruptive – changes in technology. As a result, these sectors are often subject to heavy regulatory scrutiny as policymakers.
We maintain a zero tolerance level on legal and regulatory compliance in line with our Regulatory Compliance Framework (ARCF). To meet this standard, we actively engage with policymakers and regulatory stakeholders while driving collaboration with fellow industry peers. This collaborative approach enables us to effectively address common issues and advocate for policies that support the telecom sector’s growth and innovation.
Read more about our response to Regulatory & Political Risk in our Sustainability and National Contribution Report 2023.
Our industry remains highly regulated, requiring us to comply to a broad range of telecom, digital and fintech legislation and regulations, including those that provide the legal basis of our core operating licenses, spectrum usage rights, subscriber registration rules and timely tariff approvals. Additionally, we are subject to sector-specific taxes, fees and levies imposed across the Group by relevant regulatory authorities. This is above and beyond non-sectoral specific taxes such as service taxes, excise duties and Value Added Tax (VAT). As we operate in multiple markets, these legislations and regulations are vastly different in each country. Furthermore, we have to contend with foreign investment policies, rules and practices which differ from country to country.
In recent years, we have seen an increased focus by some regulators on network and service quality issues while policymakers have tightened the regulatory environment surrounding digital services, especially in the context of personal data protection, misinformation and network security.
These regulations create uncertainties for our operations and may impair business returns and long-term growth prospects, in addition to limiting our flexibility to respond to market conditions, competition and new technologies.
Our Response:
Our response, guided by the Axiata Regulatory Compliance Framework (ARCF), was designed to ensure that we not only meet compliance expectations but also minimise exposure to regulatory risks and remain agile in the face of regulatory changes. The framework underscores our commitment to navigating the complex regulatory environments of our markets, ensuring that our operations align with the latest legal standards and contribute to our strategic objectives.
Read more on our Stakeholder Engagement Mode and Regulatory Expert Working Groups in Sustainability and National Contribution Report 2023 (pg 100 – 101)
We continue to navigate through geopolitical challenges, including Sri Lanka’s ongoing recovery from the worst economic crisis in its history, rising interest rates, the ongoing situation in Myanmar, and others.
These situations have necessitated comprehensive assessments and due diligence, particularly regarding sanctions impacting vendors, suppliers and partners. Rigorous checks against international sanction lists ensure compliance and minimal operational disruption.
We maintain a neutral political stance, fostering positive relations with the government of the day and contributing to socioeconomic development through CSR initiatives across our markets. This approach has enhanced our ability to monitor and anticipate geopolitical risks, leveraging local expertise and knowledge to navigate the fluid political landscapes. Our commitment to resilience is underpinned by robust Business Continuity Plans (BCP) across all our OpCos which are ready to be activated in crisis situations, ensuring continuity amidst political and social tensions.
Ultimately, our initiatives contribute to our corporate vision, purpose and values, delivering on our responsibilities as a regional telecommunications and digital leader.
Our vision
To be The Next Generation Digital Champion
Our purpose
Advancing Asia
Our vALUES
Uncompromising Integrity & Exceptional Performance