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Sri Lanka telecom sector soars on new mobile phone connections
Wednesday, 21 February 2007 - 4:52 AM SL Time
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- Sri Lanka`s telecom sector soared in 2006 to 7.3 million users, led by a 59 percent jump in new mobile phone connections on competition and falling call rates, the telecom watchdog has said.
Despite a waiting list of around 366,000 for fixed-line phone services, the Sri Lanka Telecommunications Regulatory Commission said mobile phones, including GSM and
CDMA systems, had allowed rural residents to get phone services immediately.
Fixed-line subscribers rose to 1.9 million in 2006 from 1.2 million a year ago after the commission gave CDMA (code division multiple access) licences allowing three firms to use the cheaper technology and expand in rural areas.
The number of cellular phone users grew to 5.4 million in 2006 from 3.4 million a year earlier, as operators slashed tariffs by up to 40 percent.
The clear majority of new users buy pre-paid cards, the commission said.
With India`s largest private phone company, Bharti Airtel, lined up to be the fifth mobile phone player, analysts expect further price cuts, especially outside the capital, to tap rural users in the nation of 19 million.
Bharti, which is due to start services by year-end, has promised to invest 100 million dollars within the first year of operation.
However, Sri Lanka`s mobile phone market may grow at a slower pace this year as galloping inflation puts the breaks on tariff cuts, industry analysts said Tuesday.
`We are looking at just over seven million customers in 2007 and about 8.9 million in 2008, which is a tad slower than the annual 50 percent growth we have been seeing over the years,` equity brokerage Capital Alliance said.
With inflation showing little sign of easing after touching 20.5 percent in January from a year ago, Alliance said cellular operators should not be in a hurry to slash tariffs.
`With Bharti coming in, there is certainly going to be some price pressure, but mobile operators are better off holding their tariffs at current rates because inflation is biting in,` the brokerage said.
Sri Lanka, which became one of the few South Asian countries to offer 3G (third generation) services commercially in 2006, was also the first in the region to introduce cellular phones by unveiling an analog network in 1989.
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Saint
Senior Member
Joined: Nov 2006
Posts: 4460
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20 Feb 2007 23:00:48 GMT Report for Abuse
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Better it will be for users.
;-)
Edited By - Saint - 20 Feb 2007 23:04:48 GMT |
Roshan2007
Joined: Dec 2006
Posts: 214
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21 Feb 2007 04:14:51 GMT Report for Abuse
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7.3 million phone users !
Where are all those marxist sahodarayas who blame privatisation?
Privatisation is the medicine to run profitable business.
Privatisation is the panacea for eliminate corruption. |
Roshan2007
Joined: Dec 2006
Posts: 214
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21 Feb 2007 08:03:13 GMT Report for Abuse
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MR introduce more ministers to Telecom please.
Telecom is managed by NTT, the Japanese.
Ministers cannot get any 10% commission or give their henchmen jobs in Telecom. |
TruthToo
Joined: Feb 2007
Posts: 2
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21 Feb 2007 08:12:02 GMT Report for Abuse
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Sri Lanka Telecom may do a so so job on providing mobile phone service but fail completely on providing ADSL services and providing those services at a reasonable cost.
Recently I had to move my business from Ganemulla because Sri Lanka telecom is not providing ADSL service there. I think much of the high tech businesses that would like to set up or do business n Sri Lanka have no choice but to move to India or elsewhere in order to have ADSL / high speed internet services. Oh yes, they will set anyone up that wishes to pay 200,000 rupees a month. Is it no wonder jobs are hard to come by in Sri Lanka? |
Roshan2007
Joined: Dec 2006
Posts: 214
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21 Feb 2007 09:18:01 GMT Report for Abuse
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Sri Lanka Telecom may do a so so job on providing mobile phone service but fail completely on providing ADSL services and providing those services at a reasonable cost.
Agree.
That's because only Telecom have license for outside plant copper cables. That part was never opened up for private telecom operators.
Alternatively you can get CDMA fixed phone line (Telecom, LankaBell, Suntell). It provides data access on 153Kbps.
When WiMax, HSDPA (3G) technologies really kicks off we would have alternative for ADSL and private operators can compete fairly. Dialog & Mobitel got 3G license. WiMax should be commercially avaialable by end this year. |
justman
Joined: Mar 2006
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22 Feb 2007 00:22:19 GMT Report for Abuse
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Truth Too
I am in this business and work for a major pioneering Dpt. in wide band.I don't think Ganemulla is big enough to have a digital network,perhaps only to the key customers of the government,banks etc and the rest of the bandwidth is used for normal telephone traffic.Also your business must have been too far from the nearest digital exchange and this is over come with 3 pairs of copper per customer,which I doubt that your telecoms provider could spare.So I would suggest you make your move to a place not too far from the digital exchange that have ADSL muxes for customers,where you could have your independent telephone line as well as your digital link to your PC.Perhaps a wireless one if available in your country. |
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