Sri Lanka - Key Statistics, Telecom Market Overview and Forecasts

Synopsis

Sri Lanka’s telecommunications sector has had to contend with a developing market in the difficult context of a nearly two-decade-long conflict between the government and separatist Tamil Tiger rebels. With the end of the war in 2009 has come the hope of an enduring peace and a general improvement in the country’s social and economic well-being. This also found the telecom sector well positioned for vigorous growth. As this report describes, there are a range of major initiatives in place that should boost the building of national infrastructure and open the market to more competition. Sri Lanka Telecom losing its monopoly in a number of key areas has led the way, as the market is progressively opened up to more and more competition. The presence of foreign investors has been a positive factor in the growth in the market

Key developments:

Direct price competition eased following 2010 regulatory intervention. SLT launched another major optical fibre project in 2011. The mobile market was moving quickly towards 100% penetration by end-2011. Fixed wireless service constituted 74% of total fixed line services by June 2011. The local economy is growing at 7%-8%.

Companies covered in this report include:

SLT, Lanka Bell, Suntel, Dialog Axiata (formerly Dialog Telekom), Etisalat Sri Lanka (formerly Tigo), Mobitel, Hutchison Lanka, Bharti Airtel Lanka.

Table of Contents

• 1. Synopsis
• 2. Key Statistics
• 3. Sri Lanka’s telecommunications market
  • 3.1 Overview
  • 3.2 Economy
  • 3.3 Background to development
• 4. Regulatory Environment
  • 4.1 Telecommunications Regulatory Commission (TRC)
  • 4.2 National Policy on Telecommunications
    • 4.2.1 Adoption in 1998
    • 4.2.2 The years 2001-2005
    • 4.2.3 Proposed Ten Year Development Plan (2006-2016)
  • 4.3 Calling Party Pays (CPP)
  • 4.4 Historical overview
  • 4.5 Deregulation
    • 4.5.1 Background
    • 4.5.2 EGO Licences – International licences
    • 4.5.3 International Traffic Bypass Control rules
    • 4.5.4 Convergence Act
  • 4.6 Licences
  • 4.7 Regulatory developments
  • 4.8 Privatisation
    • 4.8.1 SLT
• 5. Telecommunications Infrastructure
  • 5.1 Overview
  • 5.2 National telecom network
  • 5.3 Forecasts – fixed-line market – 2015; 2020
  • 5.4 Infrastructure development
    • 5.4.1 STL’s role
    • 5.4.2 Wireless Local Loop (WLL)
    • 5.4.3 Fibre optic networks
    • 5.4.4 National Backbone Network (NBN)
    • 5.4.5 Payphones
    • 5.4.6 Numbering plan
    • 5.4.7 Internet Protocol (IP) networks
    • 5.4.8 Rural communications
  • 5.5 International infrastructure
• 6. Notes on forecasting
• 7. Related reports

• Table 1 – Country statistics Sri Lanka – 2011
• Table 2 – Telephone network statistics – June 2011
• Table 3 – Internet user statistics – 2010
• Table 4 – Mobile statistics – June 2011
• Table 5 – National telecommunications authorities
• Table 6 – National network status – June 2011
• Table 7 – Sri Lanka’s real GDP growth rate – 2006 - 2011
• Table 8 – Number of telecom operator licences by category – June 2011
• Table 9 – Fixed lines in service, annual change and teledensity – 1995 - 2012
• Table 10 – Forecast fixed line subscribers and penetration rate – 2015; 2020
• Table 11 – WLL subscribers – 1996 - 2012