SL Broadband Subs to Reach 3.2 mn by 2019
Broadband subscriptions in Sri Lanka are forecast to reach 3.2 million by 2019 according to the Sri Lanka Telecommunications Report Q1 2016 published by Business Monitor International. The BMI report also states that over 74% of mobile phone subscriptions remain prepaid which limits the market for premium services and the average ARPU has declined steadily as operators compete on price. There may be further consolidation in the mobile market as telecoms tax erodes operator revenues.
Although 4G LTE and LTE advanced technology is present in the market, the adoption of these data services is limited in the medium term because of the higher cost of the services.
As a high telecoms tax puts pressure on operator margins, smaller operators have expressed interest in divesting their local operations, which would lead to consolidation. Dialog Axiata continues to dominate the mobile market with an estimated 41.8% of subscriptions.
SLT’s new fibre optic network which is being rolled out will bring fixed broadband to the next stage.
The report also states that improvements in broadband coverage and speed are vital to the future of the telecoms industry in Sri Lanka, and there is pressure on SLT to complete its fibre-optic network by the end of 2016.