Mobile market in Sri Lanka is growing due to increasing use of mobiles in rural areas, lower mobile rental cost, fall in handset price, initiatives taken by the government etc.
Lanka Business Online reported that people in Sri Lanka are increasingly buying cell phones. This is good news for cellular operators and equipment sellers who will get a bigger market to play and operate in.
Two biggest telecommunication equipment providers, Siemens and Nokia, collaborated in March 2007. For them, it is a very good opportunity, and they are trying to leverage from the favorable market in Sri Lanka.
Sunil Lakshmanasinghe, Director of the Nokia Siemens in Sri Lanka, said, “We believe by 2010, the mobile penetration will reach more than 50% and that means we are looking at 14 Million (people) who are connected”, as reported by Lanka Business Online.
Sri Lanka has over 7 Million mobile users and over 3.5 Million landline users presently. Mobile rental costs are around a fifth of that of landline, and the handset prices’ sharp fall has given the mobile telecommunication market an increased sale. Mobile usage has increased even in the rural areas due to the low cost factor.
The telecommunications industry is one of the fastest growing sectors in Sri Lanka. This growth can be attributed to the major initiatives that have been provided by the government, and also due to the overwhelming support by the private sector.
A 5th mobile operator, Bharati Airtel of India, was also given the license to offer services in Sri Lanka in previous year. With a market where cell phone penetration is little over 30%, this was a major event. Competition has increased, which has resulted in tariff reduction making the mobile calls cheaper than that of landline sometimes.
According to a Senior Research Analyst at RNCOS, “Sri Lanka's mobile market has witnessed major growth in the past few years, and there is still a significant room for growth in the market. It is expected that most of this growth will be determined by the addition of low-income consumers. With the right approach by the Sri Lankan government and the enthusiasm of the private partners, the mobile industry is all set to grow and bridge the technological divide between the various strata of the society”.
Related Market Research Reports:
Srilankan ICT Market Analysis
China Telecom Analysis (2008-2012)
European Mobile Market Scenario to 2012
