Sri Lanka Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Last updated: 8 Nov 2021 Update History

Report Pages: 139

Analyst: Sebastien De Rosbo

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Summary
Table Of Contents

Sri Lanka’s telecoms market experiences a reversal of fortunes due to Covid-19

Sri Lanka’s fixed-line telephony market was one of the very few in the world to experience a significant upsurge in subscriptions in 2020. While the country suffers from a relatively poor fixed-line infrastructure and a correspondingly strong mobile sector, demand for traditional phone services increased 14% in 2020. Preliminary results suggest a further jump of up to 13% can also be expected in 2021. This will take Sri Lanka’s fixed-line penetration to levels not seen since 2013.

The most likely reason behind the market’s reversal of fortunes is the Covid-19 crisis and Sri Lanka’s ensuring lockdowns. These forced much of the population back inside and reverting to ‘traditional’ methods of communication for both voice and data services. The fixed broadband market was equally robust, growing 20% in 2020 alone. Sri Lanka possesses a relatively low number of computers per household, however, so the fixed broadband market’s success comes off a small base.

The one area of the telecommunications market that experienced a fall was the mobile segment. Up until the start of the pandemic, Sri Lanka had a very high mobile penetration rate of 155%. This near-saturation level reflected the preponderance for subscribers to carry multiple SIM cards to take advantage of cheaper on-net call rates. The reduction in demand and traffic because of the pandemic led to a sharp drop in the number of active subscriptions, down to just 135% – a 17% decline in just one year.

The market is expected to bounce back again quickly, just as soon as the country eases back on its lockdown measures and reduces travel restrictions. It will also be boosted, come 2022, by the anticipated launch of commercial 5G mobile services.

This report includes the regulator's market data to June 2021, telcos' financial and operating data updates to Q2 2021, Telecom Maturity Index charts and analyses, assessment of the global impact of Covid-19 on the telecoms sector, and other recent market developments.

Key developments:

Sri Lanka’s fixed-line telephone market grows significantly during the Covid-19 pandemic.
Regulator approves the introduction of MNP, expecting it to be implemented by May 2022.
Hutchison completes 5G trials with ZTE as its partner, achieving speeds of 1.8Gb/s.
Airtel Lanka completes 3G network upgrade to LTE, using spectrum in the 850MHz band.
SLT rebrands itself and its subsidiary under a single unified moniker, SLT-Mobitel.
SLT commits to investing in the proposed SEA-ME-WE 6 submarine cable system.
The Maldives Sri Lanka Cable (MSC), a second submarine cable linking the two countries, is ready for service.
Dialog Axiata opens a Tier 3 data centre in Piliyandala.

Companies mentioned in this report:

SLT (Sri Lanka Telecom), Mobitel, Dialog Axiata, DBN (Dialog Axiata group), Etisalat Lanka, Hutchison Lanka (Hutch), Airtel Lanka.

Key statistics
Regional Asia market comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

Country overview
Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market
Regulatory environment

Telecommunications Regulatory Commission of Sri Lanka (TRCSL)
National Telecommunications Policy
Telecom Levy
Mobile network developments

Pricing
Mobile Number Portability (MNP)

Mobile market

Mobile statistics
Mobile infrastructure

Towers
5G
4G (LTE)
3G

Mobile broadband
VoLTE
MIMO
Major mobile operators

Dialog Axiata
Mobitel
Hutchison Lanka
Airtel Lanka
Etisalat Sri Lanka

Mobile content and applications

m-Commerce

Fixed-line broadband market

Broadband statistics
National Broadband Network
Fixed-line broadband technologies

Digital Subscriber Line (DSL) networks
Fibre-to-the-Premises (FttP) networks
Other fixed broadband services

Fixed network market

Major network providers
Sri Lanka Telecom (SLT)
Lanka Bell
Dialog Broadband Networks (DBN)

Telecommunications infrastructure

Fixed-line statistics
Domestic infrastructure
International infrastructure

Submarine

Data centres
Smart infrastructure

Internet of Things (IoT)
Smart Cities

Digital economy

e-commerce
e-government
e-Health
e-Education

School Net project
Connect To Learn Project
Nenasa 1377

Appendix – Historical data
Glossary of abbreviations
Related reports

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities – 2021 (e)
Table 2 – Telecom revenue by sector (Rs million) – 2010 – 2018
Table 3 – Telecom investment by sector (Rs million) – 2010 – 2019
Table 4 – Total fixed and mobile ARPU (Rs / month) – 2010 – 2019
Table 5 – Growth in the number of mobile subscribers and penetration – 2011 – 2026
Table 6 – Growth in the number of mobile towers – 2014 – 2019
Table 7 – Population coverage by type of mobile network – 2015 – 2020
Table 8 – Growth in the number of mobile broadband subscribers and penetration – 2011 – 2026
Table 9 – Change in the number of mobile subscribers by operator (million) – 2009 – 2021
Table 10 – Change in the market share of mobile subscribers by operator – 2009 – 2020
Table 11 – Development of Dialog Axiata’s subscribers, annual growth – 2011 – 2021
Table 12 – Development of Dialog Axiata’s prepaid /postpaid subscribers (million) – 2011 – 2021
Table 13 – Development of Dialog Axiata’s revenue, capex and NPAT (Rs billion) – 2009 – 2021
Table 14 – Development of Dialog Axiata’s mobile ARPU (Rs/month) – 2011 – 2021
Table 15 – Growth in the number of Mobitel’s subscribers – 2009 – 2020
Table 16 – Growth in Mobitel’s revenue and EBITDA (Rs billion) – 2009 – 2021
Table 17 – Development of Mobitel’s mobile capex – 2009 – 2020
Table 18 – Growth in the number of Hutchison Lanka’s mobile subscribers – 2009 – 2019
Table 19 – Development of Hutchison Lanka’s financial data (HK$ million) – 2017 – 2021
Table 20 – Growth in the number of Airtel Lanka’s subscribers – 2016 – 2021
Table 21 – Development of Airtel Lanka’s financial data (INR million) – 2017 – 2022
Table 22 – Growth in the number of fixed broadband subscribers – 2011 – 2026
Table 23 – Growth in the number of SLT’s fixed broadband subscribers – 2015 – 2020
Table 24 – Growth in SLT's fibre-optic network length – 2014 – 2020
Table 25 – Development of SLT Group’s revenue by sector (Rs billion) – 2011 – 2021
Table 26 – Development of SLT Group’s capex by sector (Rs billion) – 2009 – 2020
Table 27 – Development of DBN’s fixed broadband and fixed LTE subscriber base (million) – 2009 – 2020
Table 28 – Growth in DBN’s revenue – 2009 – 2021
Table 29 – Development of DBN’s EBITDA and net profit (Rs billion) – 2014 – 2021
Table 30 – Change in the number of fixed-line connections and penetration – 2011 – 2026
Table 31 – Growth in international internet bandwidth – 2011 – 2020
Table 32 – Historic - Mobile subscribers, annual change and penetration – 1995 – 2010
Table 33 – Historic - Dialog Axiata prepaid /postpaid subscribers (millions) – 2004 – 2010
Table 34 – Historic - Etisalat Sri Lanka subscribers – 2004 – 2010
Table 35 – Historic - Fixed broadband subscribers and penetration – 2002 – 2010
Table 36 – Historic - DSL subscribers – 2003 – 2014
Table 37 – Historic - WLL subscribers – 1996 – 2011
Table 38 – Historic - SLT fixed-line subscribers – 1999 – 2014
Table 39 – Historic - Lanka Bell fixed-line subscribers – 1999 – 2014
Table 40 – Historic - fixed-line subscribers, annual change and penetration – 1995 – 2010
Table 41 – Historic - Fixed subscribers – wireline and wireless (WLL) – 2009 – 2016
Table 42 – Historic - International internet bandwidth – 1998 – 2010
Table 43 – Historic - Development of Dialog Axiata’s mobile ARPU (Rs/month) – 2007 – 2010

List of Charts

Chart 1 – Asia Telecoms Maturity Index – Market Leaders
Chart 2 – Asia Telecoms Maturity Index – Market Challengers
Chart 3 – Asia Telecoms Maturity Index – Market Emergents
Chart 4 – Asia – Telecoms Maturity Index vs GDP per capita
Chart 5 – Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 6 – Central Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 7 – Central Asia – Fixed and mobile broadband penetration
Chart 8 – Telecom revenue by sector – 2010 – 2018
Chart 9 – Telecom investment by sector (Rs million) – 2010 – 2019
Chart 10 – Total fixed and mobile ARPU (Rs / month) – 2010 – 2019
Chart 11 – Growth in the number of mobile subscribers and penetration – 2011 – 2026
Chart 12 – Growth in the number of mobile towers – 2014 – 2019
Chart 13 – Growth in the number of mobile broadband subscribers and penetration – 2011 – 2026
Chart 14 – Change in the number of mobile subscribers by operator – 2009 – 2021
Chart 15 – Change in the market share of mobile subscribers by operator – 2009 – 2020
Chart 16 – Development of Dialog Axiata’s subscribers, annual growth – 2011 – 2021
Chart 17 – Development of Dialog Axiata’s prepaid /postpaid subscribers – 2011 – 2021
Chart 18 – Development of Dialog Axiata’s revenue, capex and NPAT – 2009 – 2021
Chart 19 – Development of Dialog Axiata’s mobile ARPU – 2011 – 2021
Chart 20 – Growth in the number of Mobitel’s subscribers – 2009 – 2020
Chart 21 – Growth in Mobitel’s revenue and EBITDA – 2009 – 2021
Chart 22 – Development of Mobitel’s mobile capex – 2009 – 2020
Chart 23 – Growth in the number of Hutchison Lanka’s mobile subscribers – 2009 – 2019
Chart 24 – Development of Hutchison Lanka’s financial data – 2017 – 2021
Chart 25 – Growth in the number of Airtel Lanka’s subscribers – 2016 – 2021
Chart 26 – Development of Airtel Lanka’s financial data – 2017 – 2022
Chart 27 – Growth in the number of fixed broadband subscribers – 2011 – 2026
Chart 28 – Growth in the number of SLT’s fixed broadband subscribers – 2015 – 2020
Chart 29 – Development of SLT Group’s revenue by sector – 2011 – 2021
Chart 30 – Development of SLT Group’s capex by sector – 2009 – 2020
Chart 31 – Growth in DBN’s revenue – 2009 – 2021
Chart 32 – Development of DBN’s EBITDA and net profit – 2014 – 2021
Chart 33 – Change in the number of fixed-line connections and penetration – 2011 – 2026
Chart 34 – Growth in international internet bandwidth – 2011 – 2020

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Asia
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Asia – Market Leaders and market developments
Exhibit 4 – Asia – Market Challengers and market developments
Exhibit 5 – Asia – Market Emergents and market developments
Exhibit 6 – Mobile operators and systems
Exhibit 7 – Mobile operator licence expiry dates
Exhibit 8 – Hutch Lanka’s spectrum concessions - 2021
Exhibit 9 – Number of telecom operator licenses by category – Sept 2021

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Sri Lanka Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Sri Lanka’s telecoms market experiences a reversal of fortunes due to Covid-19

Key developments:

Companies mentioned in this report:

Key statistics

Regional Asia market comparison

Country overview

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network market

Telecommunications infrastructure

Digital economy

Appendix – Historical data

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

Purchase with Confidence

Research Methodology

Hot Topics

News & Views