Sri Lanka Telecom Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.45 Billion |
| Market Size (2029) | USD 2.15 Billion |
| CAGR (2024 - 2029) | 6.80 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Sri Lanka Telecom Market Analysis
The Sri Lanka Telecom Market size is estimated at USD 1.45 billion in 2024, and is expected to reach USD 2.15 billion by 2029, growing at a CAGR of 6.80% during the forecast period (2024-2029).
Sri Lanka is investing heavily in expanding its 4G LTE and fiber optic networks. Major telecom operators like Sri Lanka Telecom (SLT), Dialog Axiata, and Airtel are upgrading their networks to offer faster and more reliable internet services. For instance, SLT is working on the SEA-ME-WE 6 cable system to enhance international connectivity, which is expected to be completed by 2025.
- The government collaborates with private telecom providers to address connectivity issues, mainly in rural areas. Initiatives like the Gamata Sannivedanaya project seek to deliver broadband coverage nationwide, facilitating online education and other digital services. In May 2024, Sri Lanka's government proposed plans to allow third-party companies to build telecom towers. The government also aims to build 276 towers to improve connectivity across the country and support its target of growing the digital economy to USD 15 billion in 2030 from last year's USD 2.3 billion.
- Furthermore, the push toward digital transformation is evident as telecom companies introduce various digital services and innovations. Hutch, for example, is driving a digital vision for inclusive growth by expanding its 4G and 5G-ready network across Sri Lanka. In January 2024, Indian telco Reliance Jio was named one of three interested parties considering purchasing the Sri Lankan government's 50.23% stake in the state-owned firm Sri Lanka Telecom.
- Sri Lanka's information and communication technology (ICT) sector, including IT/ITES and telecommunications, aims to contribute USD 3 billion to the economy by 2024 through export revenue. This is part of a broader plan to reach USD 15 billion in digital economy contributions by 2030, aligning with the country’s Sustainable Development Goals (SDG). According to the Federation of Information Technology Industry Sri Lanka (FITIS), the country will enter the third wave of technology during the digital transformation, with 750 tech companies, 1,000 IT and IT-infused startups, and 500 other technology startups in place.
- Sri Lanka's telecom industry made further strides in expanding its network capacity with fiber and wireless deployments. For instance, Sri Lanka Telecom (SLT) offers customers Wi-Fi hotspots. These wireless broadband services help customers by providing high-speed connectivity services. Moreover, Sri Lanka Telecom (SLT) proposed the SEA-ME-WE 6 cable system to link Western Europe, the Middle East, and Southeast Asia. This project is expected to be completed at the end of 2025. Key players in the telecom market are expected to further support the growth of the market by investing in fiber cables to offer high-speed connectivity services for customers.
- Inflation can impact the cost of borrowing and the availability of capital. Telecom companies may find it more expensive to finance new projects or upgrade infrastructure, potentially slowing down expansion and modernization efforts. Rising infrastructure, equipment, and services costs can lead to higher expenses for telecom operators. This can reduce profit margins unless costs are passed on to consumers.
Sri Lanka Telecom Market Trends
Rising Demand for Wireless Services
- With the expansion of wireless services, more areas, including remote and rural regions, are gaining access to telecommunications. This improved connectivity enhances communication and opens up new markets for telecom operators. The rise in wireless services in the country has led to higher mobile phone penetration. As more people access mobile phones, the demand for telecom services grows, driving revenue for the sector. According to OpenSignal, as of 2023, Sri Lanka improved its video streaming experience by 37.6% with the introduction of 5G over 4G.
- In April 2023, the Reliance Jio-led India-Asia-Xpress (IAX) landed at Matara in Sri Lanka in collaboration with Dialog Axiata. Dialog Axiata landed the IAX subsea cable at Matara, marking Dialog's third and Sri Lanka's ninth installation. These strategic investments are poised to elevate Sri Lanka into a regional connectivity hub, bolstering the nation's digital transformation initiatives.
- Sri Lanka Telecom (SLT) has partnered with Fon Wireless to introduce its SLTGO 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 is expected to grow significantly with the increasing adoption of smartphone connections. For instance, in November 2023, Sri Lanka's mobile operator community collectively announced a set of new network APIs, marking their participation in the GSMA Open Gateway initiative. These APIs are designed to streamline the integration of digital services and applications, ensuring compatibility with Sri Lanka's mobile networks and numerous others globally.
- The nation's four major mobile operators (Bharti Airtel Lanka (Private) Limited, Dialog Axiata PLC, Hutchison Telecommunications Lanka Ltd, and SLT-Mobitel) have rolled out three key APIs: one-time password (OTP) validation, device location, and carrier billing. These APIs give developers and businesses a standardized approach to engage with over 21 million Sri Lankans, irrespective of their network provider.
- Government authorities are working with private organizations. For instance, in May 2024, the Sri Lankan government decided to amend its telecom laws to allow independent companies to build telecom towers. The Telecommunications Regulatory Commission of Sri Lanka (TRCSL) seeks to create 276 towers to boost mobile broadband connectivity and sustain the rollout of 5G, both of which are needed to help facilitate the government’s plan to develop the country’s digital economy to USD 15 billion by 2030.
OTT Services Drive Significant Market Growth
- OTT services like streaming video, music, and online gaming significantly increase data consumption. This boosts the demand for higher data packages and faster internet connections, leading to increased revenue for telecom operators.
- As OTT services become more popular, consumers are more likely to subscribe to internet plans that offer higher bandwidth and data limits. This increases the number of internet subscriptions and average revenue per user (ARPU) for telecom providers.
- In April 2024, Sri Lanka Telecom (SLT), in collaboration with its local partner Evoke International (Pvt) Limited, joined forces with Hungama Digital Media Entertainment (Pvt) Limited. SLT aims to enhance its broadband services through this strategic alliance, offering customers top-tier video streaming, music downloads, and gaming options. This move is set to revolutionize home entertainment, delivering a cinematic experience to households across Sri Lanka.
- 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 128th with a median mobile broadband download speed of 17.91 Mbps in May 2024. Mobile broadband subscriptions have increased, thus creating more demand for OTT service providers.
- Dialog, Sri Lanka's significant mobile telecommunications network, secured nine out of ten awards independently and shared the 4G Availability award with Airtel. These awards underscore Dialog's commitment to providing its users with significant experiences, excelling in mobile video streaming, multiplayer gaming, and utilizing over-the-top voice applications on cellular networks. In addition, Dialog users in Sri Lanka experienced the swiftest download and upload speeds.
Sri Lanka Telecom Industry Overview
Sri Lanka's telecom market is moderately fragmented due to ongoing partnerships and recent advancements. Some major players in the market studied include Dialog Axiata, Airtel, Hutchison Telecommunications Lanka (Hutch), SLTMobitel, and Lanka Bell.
In October 2023, Dialog Axiata completed the first-ever Voice over New Radio (VoNR) service trial on a 5G standalone trial network in Sri Lanka. This marks the first implementation of voice-over 5G in Sri Lanka, showcasing the technology with Huawei providing the infrastructure for the project.
Sri Lanka Telecom Market Leaders
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Dialog Axiata
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Airtel
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Hutchison Telecommunications Lanka (Hutch)
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SLTMobitel
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Lanka Bell
*Disclaimer: Major Players sorted in no particular order
Sri Lanka Telecom Market News
- April 2024: Dialog Axiata PLC (“Dialog”), Axiata Group Berhad (“Axiata”), and Bharti Airtel Limited (“Bharti Airtel”) signed a definitive agreement to combine their operations in Sri Lanka. Under this agreement, Dialog will acquire 100% of the issued shares in Airtel Lanka, in consideration of which Dialog will issue to Bharti Airtel ordinary voting shares, which will amount to 10.355% of the total issued shares of Dialog by way of a share swap.
- July 2023: SLT-MOBITEL expanded 5G trials in Sri Lanka and has forged a strategic partnership with Pristine Innovations (Pvt), a prominent provider of IT and ERP solutions. Together, they launched a pioneering platform to foster low-latency 5G applications within the country. This collaboration serves as a knowledge-sharing hub for ecosystem partners, shedding light on 5G's potential and digitalization opportunities, but also acts as a catalyst for co-innovation, advocating for broader adoption of 5G technology. The ripple effects of this collaboration are poised to extend significant benefits to local industries and the nation at large.
Sri Lanka Telecom Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Ecosystem Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Impact of Key Macroeconomic Trends on the Market
- 4.5 Regulatory Landscape in Sri Lanka
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Rising Demand For 5G
- 5.1.2 Growth of IoT Usage in Telecom
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5.2 Market Restraints
- 5.2.1 The Emergence of Stiff Competition
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5.3 Analysis of the Market Based on Connectivity (Coverage to Include In-depth Trend Analysis)
- 5.3.1 Fixed Network
- 5.3.1.1 Broadband (Cable Modem, Wireline-Fiber, Wireline DSL, Fixed Wi-Fi), Trends Regarding ADSL/VDSL, FTTP/B, Cable Modem, FWA, and 5G FWA)
- 5.3.1.2 Narrowband
- 5.3.2 Mobile Network
- 5.3.2.1 Smartphone and Mobile Penetration
- 5.3.2.2 Mobile Broadband
- 5.3.2.3 2G, 3G, 4G, and 5G connections
- 5.3.2.4 Smart Home IoT and M2M Connections
- 5.4 Analysis of Telecom Towers (Coverage to Include In-Depth Trend Analysis of Various Types of Towers, like Lattice, Guyed, Monopole, and Stealth Towers)
6. MARKET SEGMENTATION
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6.1 By Services
- 6.1.1 Voice Services
- 6.1.1.1 Wired
- 6.1.1.2 Wireless
- 6.1.2 Data and Messaging Services (Coverage to Include Internet & Handset Data Packages as well as Package Discounts)
- 6.1.3 OTT and PayTV Services
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 SLT-MOBITEL
- 7.1.2 Dialog Axiata
- 7.1.3 Airtel
- 7.1.4 Hutchison Telecommunications Lanka (Hutch)
- 7.1.5 Lanka Bell
- 7.1.6 AT&T
- 7.1.7 Teleperformance
- 7.1.8 Orange
- 7.1.9 Nokia
- 7.1.10 Ericsson
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablitySri Lanka Telecom Industry Segmentation
Telecom or telecommunication is the long-range transmission of information by electromagnetic means.
Sri Lanka's telecom market is segmented by services (voice services [wired and wireless], data and messaging services (coverage to include internet and handheld data packages, as well as package discounts), and OTT and servicespayTV services. The impact of macroeconomic trends on the market is also covered under the scope of the study. The impact of factors affecting the market's evolution in the near future, such as drivers and constraints, are also covered in the study. The market sizes and forecasts are provided in USD for all the above segments.
| By Services | Voice Services | Wired |
| Wireless | ||
| By Services | Data and Messaging Services (Coverage to Include Internet & Handset Data Packages as well as Package Discounts) | |
| OTT and PayTV Services |
Sri Lanka Telecom Market Research FAQs
How big is the Sri Lanka Telecom Market?
The Sri Lanka Telecom Market size is expected to reach USD 1.45 billion in 2024 and grow at a CAGR of 6.80% to reach USD 2.15 billion by 2029.
What is the current Sri Lanka Telecom Market size?
In 2024, the Sri Lanka Telecom Market size is expected to reach USD 1.45 billion.
Who are the key players in Sri Lanka Telecom Market?
Dialog Axiata, Airtel, Hutchison Telecommunications Lanka (Hutch), SLTMobitel and Lanka Bell are the major companies operating in the Sri Lanka Telecom Market.
What years does this Sri Lanka Telecom Market cover, and what was the market size in 2023?
In 2023, the Sri Lanka Telecom Market size was estimated at USD 1.35 billion. The report covers the Sri Lanka Telecom Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Sri Lanka Telecom Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sri Lanka Telecom (SLT) Industry Report
Statistics for the 2024 Sri Lanka Telecom (SLT) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Sri Lanka Telecom (SLT) analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
