Sri Lanka pushes to expand 4G broadband communication tower network
Daily FT: The Cabinet of Ministers has approved a revised reimbursement framework to fast-track the implementation of the “Communication to the Village” National Project, aimed at expanding 4G broadband access across underserved areas in Sri Lanka.
The initiative, implemented since 2021 by the Telecommunication Regulatory Commission of Sri Lanka (TRCSL) under the provisions of the Finance Act No. 11 of 2004, seeks to bridge connectivity gaps by identifying regions with limited or no communication facilities and constructing telecommunication towers through a cost-sharing mechanism with mobile service providers.
The TRCSL has issued new guidelines designed to incentivise further investment. Under the revised framework, service providers will be reimbursed the lower of either a maximum of Rs. 35 million per tower or 75% of the actual cost incurred in constructing the communication tower and installing relevant equipment.
“The revised funding model is expected to accelerate the rollout of 4G broadband services countrywide and ensure that rural and remote communities gain faster and more reliable access to digital connectivity,” Minister Vijitha Herath said at the post-Cabinet meeting media briefing recently.
To date, 83 communication towers have been constructed under the project, enabling mobile service coverage in previously underserved localities. However, progress slowed amid rising operational costs faced by service providers during the recent economic crisis, coupled with limited revenue generation from certain towers.
The decision takes into account the recent decline in prices of key telecommunications equipment and aims to make tower construction more financially viable for operators.
The proposal to this effect was submitted by President Anura Kumara Dissanayake, in his capacity as Digital Economy Minister.
OSL take:
The ongoing economic activities resulting in a steady economic expansion that have further pushed Sri Lanka towards being positioned as an emerging business destination in the South Asian region, have further expanded Sri Lanka’s digital industry to meet the increasing demand. Sri Lanka needs to be on par with the fast-evolving global digital industry to ensure that the country meets the prerequisites of a regional hub. Realizing this need, the Sri Lankan government with its commitment to transform the country into a digital economy has launched an aggressive digitization drive covering all sectors of the country. This drive has in turn, opened many business/investment opportunities that present lucrative ventures for foreign businesses/investors on the lookout for such in Sri Lanka.
| Article Code : | VBS/AT/20260303/Z_4 |