Sri Lanka Telecommunications Report

Published 29 April 2015

  • 87 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Sri Lanka Telecommunications Report

BMI View : 4G LTE mobile broadband services are beginning to be rolled out across Sri Lanka, despite the modest uptake of 3G and value-added services to date. Predominance of pre-paid subscriptions on the Sri Lankan mobile market does not bode well for the uptake of data products. We expect to see periods of significant account eliminations over the next few years as operators consolidate and pursue higher quality post-paid subscriptions to sustain their expansion. In the short term, a one-off telecom s tax imposed by the government is likely to erode operators ' revenues. The smallest operators will see their losses deepen and either cut planned network investments or exit the market in the short term.

Key Data

  • BMI estimates that mobile subscriptions reached 23.6mn at the end of 2014, with 1.28mn net additions over the twelve months since 2014. Blended ARPU continued to decline in Q114, registering LKR347.0 compared with LKR354.0 a year ago. We would see improved profitability among survivors if anticipated consolidation in the mature mobile market were to take place.

Key Trends And Developments

BMI believes that the one-off tax on mobile operators could see some consolidation in the market and potentially even force the exit of some smaller players. From April 1 2015, each of the country's five mobile network operators will incur a one-off tax of LKR250mn (USD1.88mn). The operators must also cease passing the recurring 25% levy on prepaid service revenues on to consumers, as 95% of Sri Lankan mobile subscribers are on prepaid plans, this will hit all operators' budgets very hard. In the case of minor players Airtel Lanka, Etisalat Lanka and Hutch, pressure to exit the market or consolidate will reach critical levels sooner than expected.

Etisalat was reported to have begun negotiating the sale of its Sri Lankan mobile operator business in October 2014, months after Airtel indicated its plans to withdraw from the market. However, Airtel has...

Table of Contents

BMI Industry View
7
SWOT
8
Mobile SWOT
8
Wireline SWOT
10
Political
12
Economic
13
Operational Risk
14
Industry Forecast
16
Mobile
16
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (Sri Lanka 2012-2019)
16
Wireline
19
Table: Telecoms Sector - Wireline - Historical Data & Forecasts (Sri Lanka 2012-2019)
19
Industry Risk Reward Ratings
21
Industry Risk Reward Index
21
Table: Asia-Pacific Telecoms Risk/Reward Index, Q315
25
Market Overview
27
Mobile
27
Regional Perspective
27
Table: Sri Lanka Mobile Market Regional Comparison, 2013
28
Key Developments
28
Market Growth
29
Market Shares
30
Usage
31
Networks
32
Mobile Content
33
Table: Selected Value-Added Services
35
Mobile Broadband
35
Mobile Operator Data
37
Table: Sri Lanka Mobile Market Overview
37
Table: Dialog Axiata
37
Table: Mobitel
38
Table: Etisalat Lanka
38
Table: Bharti Airtel Lanka
39
Table: Hutchison Telecommunications Lanka
39
Asia Mobile Content
40
Wireline
44
Key Developments
44
Table: Sri Lanka Fixed-Line Subscriptions
45
Fixed Internet
45
Table: Sri Lanka Fixed-Internet Subscriptions
45
Pay TV
48
Industry Trends And Developments
49
Table: Market Developments
52
Regulatory Development
55
Regulatory Overview
55
Table: Sri Lanka: Regulatory Bodies And Their Responsibilities
55
Table: Licences Granted
56
Pay-TV Legislation
56
Regulatory Developments
57
Competitive Landscape
58
Table: Sri Lanka Telecoms Sector Key Players
58
Company Profile
59
Sri Lanka Telecom
59
Hutchison Lanka
64
Dialog Axiata
67
Regional Overview
72
Table: Nokia Networks - Selected Asian Contracts/Deals, 2014-15
75
Demographic Forecast
76
Table: Population Headline Indicators (Sri Lanka 1990-2025)
77
Table: Key Population Ratios (Sri Lanka 1990-2025)
77
Table: Urban/Rural Population & Life Expectancy (Sri Lanka 1990-2025)
78
Table: Population By Age Group (Sri Lanka 1990-2025)
78
Table: Population By Age Group % (Sri Lanka 1990-2025)
79
Glossary
81
Table: Glossary Of Terms
81
Methodology
83
Industry Forecast Methodology
83
Sources
85
Risk/Reward Index Methodology
85
Table: Risk/Reward Index Indicators
86
Table: Weighting Of Indicators
87

The Sri Lanka Telecommunications Report features BMI Research's independent industry forecasts on the future strength of Sri Lanka's ICT market, covering the fixed-line, mobile and internet segments and analyses latest regulatory developments and corporate news, including investment activity, mergers and acquisitions, joint ventures and partnerships. Leading operators and manufacturers are fully profiled, highlighting their quarterly financial performance, capital expenditure plans and latest contracts.

BMI's Sri Lanka Telecommunications Report provides industry professionals and researchers, operators, equipment suppliers and vendors, corporate and financial services analysts and regulatory bodies with independent forecasts and competitive intelligence on the telecoms industry in Sri Lanka.

Key Benefits

  • Benchmark BMI's independent telecoms industry forecasts for Sri Lanka to test other views - a key input for successful budgeting and strategic business planning in the Sri Lankan telecoms market.
  • Target business opportunities and risks in Sri Lanka's telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Sri Lanka.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, covering the ARPU, fixed-line, mobile (including 3G & 4G), internet and broadband markets.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the wireline and wireless sectors and within the broader political, economic and business environment.

BMI Industry Forecast Scenario

Historic data series (2010-2013) and forecasts to end-2019 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast.

  • Fixed-line Telephony – Telephone lines (‘000); telephone lines/100 inhabitants.
  • Cellular Telephony – Mobile phone subscribers (‘000); mobile phone subscribers/100 inhabitants; and where available, 3G & 4G subscribers (‘000); 3G & 4G subscribers/100 inhabitants; 3G & 4G subscribers as a percentage of overall mobile market.
  • Internet Markets – Internet users (‘000); internet users/100 inhabitants; broadband internet subscribers (‘000); broadband internet subscribers/100 inhabitants.

BMI’s Telecommunications Risk Reward Index

BMI’s Risk Reward Indices provide investors (vendors, operators and suppliers) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an Indices of highest to lowest appeal to investors, with each position explained.

Market Data Analysis

Detailed market analysis of the mobile, mobile content, fixed-line and internet segments, broken down into:

  • Market Data – Analysis of market size, operator shares, dominant trends, competitive landscape and key quarterly data.
  • Technology/Service Rollout – Analysis of rollout/adoption of new technology, such as 3G & 4G, WiMAX, IPTV, pay-TV, LTE and valueadded handset services (gaming, music, video, apps etc.).
  • Mobile Content – The latest trends in content and services available and being introduced by mobile operators, including a timeline of all the latest major mobile content developments.
    Company Database – A comprehensive breakdown of KPIs of the leading mobile operators, including subscriber figures by type (pre-paid and post-paid); 3G & 4G subscriber figures; net additions; market share; ARPU; churn rates; minutes of use; voice and non-voice revenue; financial figures (including operating revenues, net profits and EBITDA).

Regulatory Environment

Details of the regulatory bodies and their responsibilities, as well as a special focus on the rules surrounding competition and interconnection. Also covers the latest updates in the market’s development and regulatory rulings.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Telecommunications Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc