Telecom market records over 10 percent growth annually

The Sri Lankan telecom market is developing rapidly and has an annual growth of over 10 percent. The revenue from the industry too is increasing.

According to the Sri Lanka Telecom Regulatory Commission (TRC) figures there were 2.2 million cell subscribers and this has increased to 2.7 million in July 2005. "This amount is expected to pass the three million mark by the end of the year," he said.

He said that aggressive advertising campaigns by cellular operators, low price of cell phones and difficulty in obtaining fixed line connections are some of the main reasons for the market growth of the cellular industry.

One other major advantage in the wires industry is the speedy connections, which can be obtained and used over the counter.

He said that in compariscn to some other countries, mobile charges are low and some customers with pre-paid connection have a monthly bill of round Rs. 100. The deposit less international direct dialing facility too is another attraction to increase the wireless phone market. "This facility is mainly used by families whose members are working overseas," he said.

Though the fixed line penetration is low in comparison to the wireless networks this segment too is expect to be boosted up with the introduction of CDMA technology by operators, Suntel and Lanka Bell. Sri Lanka Telecom too would launch CDMA from the end of the year after a tie up with a Chinese CDMA operator.

There had been 991,000 fixed line connections issued up to end of 2004. This has now increased to 102,000.

He said that with the advertising by both Suntel and Lanka Bell and easy payment terms offered to customers this sector too would increase.

(SS)