Sri Lanka to hold 5G spectrum auction in two months paving way for commercial rollout
The Morning: The 5G spectrum auction will be held in two months’ time, paving the way for the commercial rollout of 5G in Sri Lanka, according to the Telecommunications Regulatory Commission of Sri Lanka (TRCSL).
Speaking to The Sunday Morning Business, TRCSL Director – Spectrum Management J.A.S. Gunanandana revealed that they were currently carrying out the preparatory work for the commercial rollout of 5G in Sri Lanka and expected things to be in place to hold the 5G spectrum auction within a period of two months.
“We have appointed a consultant from the World Bank to plan the auction,” he shared.
Gunanandana stated that out of the three telecom operators in the country that would participate in the 5G spectrum auction, the most likely scenario was that only two would succeed at the auction. However, he clarified that this would ultimately depend upon the bids submitted.
On 22 December 2023, the TRCSL announced the commencement of a public consultation on ‘Spectrum Assignment for Advanced Broadband Services Including 5G’.
The TRCSL has already granted certain telecommunication providers such as Dialog Axiata and SLT-Mobitel with usage rights for spectrums in the 3.5 GHz band, allowing them to provide pre-commercial 5G services ahead of the issue for commercial fixed, mobile, Internet Service Provider (ISP), and satellite broadcast licences.
The 2022 Budget initially proposed the sale of 5G frequencies by way of auction. Accordingly, it was proposed that a fee be charged for 5G licences issued by the TRCSL via auction, including fixed phone lines, mobile connections, and internet services, as well as satellite broadcasting operations.
Although the 5G spectrum auction was originally expected to be held during Q1 of 2022 and then subsequently postponed to 2023, such plans have failed to materialise to date.
OSL take:
Sri Lanka’s ongoing work targeting to become a hub in the South Asian region has resulted in the expansion of many economic sectors in the country. ICT and digital infrastructure development sectors are two of thr key sectors that are on a growth path given the country’s need to be on par with the latest developments in the fast evolving sphere of technology. Therefore, Sri Lanka’s ICT and digital infrastructure development sectors present a host of new business/investment opportunities to the discerning foreign businesses/investors exploring lucrative opportunities in the Asian region. Local businesses engaged in the ICT and digital infrastructure development sectors have recorded growth and profits, indicating the lucrative nature of these sectors. Foreign businesses/investors could therefore explore the many opportunities in the local ICT and digital infrastructure development sectors while also looking at forming partnerships or joint ventures with local businesses with the aim of further expansion.