Market Trends of Sri Lanka Telecom Industry
This section covers the major market trends shaping the Sri Lanka Telecom Market according to our research experts:
Rising demand for wireless services
- Telecom operators are creating a roadmap to deploy next-generation fiber optic cable system that supports 5G wireless broadband services. For Instance, Dialog Axiata PLC (Dialog) announced the completion of the Maldives Sri Lanka Cable system (MSC) that offers high-speed broadband services to customers. The 840km international submarine fiber optic cable system connects Hulhumale in the Republic of Maldives and Mount Lavinia in Sri Lanka.
- Sri Lanka Telecom (SLT) has partnered with Fon Wireless to introduce its's ltgo' Wi-Fi solution, which would give customers community-based Wi-Fi network connectivity services. The most extensive Wi-Fi network provides access to smartphones, laptops, and other mobile devices. The demand for deploying Wi-Fi solutions will significantly grow with the increasing adoption of smartphone connections.
- Key players in the telecom market are taking initiatives to deploy 5G wireless services in Sri Lanka. For Instance, HUTCH collaborated with ZTE to demonstrate the fastest 5G speed in Sri Lanka. HUTCH made several 5G trials. According to Ookla global broadband speed test, HUTCH scored a speed of 1.8Gbps. This is the fastest 5G speed trial made in Sri Lanka.
- Government authorities are working with private telecom service providers to expand wireless broadband connections. According to Ookla Speedtest Global Index, Sri Lanka ranked 127th with a median fixed broadband download speed of 19.63 Mbps in September this year.
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Rising demand for OTT Services
- Increasing mobile subscribers will significantly increase the demand for OTT (over-the-top) services. OTT service providers such as Netflix and Amazon Prime offer on-demand videos for customers, thus creating new growth opportunities for the telecom market.
- Sri Lanka Telecom (SLT) launched an Online streaming service OTT (Over-The-Top) platform. SLT partnered with prominent players in digital media entertainment, Hungama Digital Media Entertainment (Pvt) Limited and Evoke International (Pvt) Limited. This partnership will provide SLT broadband customers with high-quality video streaming services.
- Customers are migrating to mobile-based OTT services, thus creating new growth opportunities for the telecom market. According to Ookla Speedtest Global Index, Sri Lanka ranked 117th with a median mobile broadband download speed of 13.98 Mbps in September 2022. The mobile broadband subscription increase and thus create more demand for OTT service providers.
- According to Opensignal's 4G Video Experience, Dialog users score the highest among other telecom players (Airtel, Hutch, Mobitel). High-quality video channels, flexibility, and scalability deliver world-class OTT streaming services for customers, which will continue further growth in the telecom market.
