"Sri Lanka Telecommunications Report Q3 2015" is now available at Fast Market Research

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.

Full Report Details at
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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...

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

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