Sri Lanka Telecom Tower Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | 3.57 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Sri Lanka Telecom Tower Market Analysis
The Sri Lanka Telecom Tower Market is expected to register a CAGR of 4.27% during the forecast period.
The Sri Lanka Telecom Tower Market is experiencing steady growth, fueled by rising mobile penetration, the rollout of 4G, the impending launch of 5G networks, and proactive government initiatives aimed at bolstering the nation's digital connectivity. Telecom operators are working diligently to broaden their network coverage, addressing surging data demands and enhancing service quality in both urban and rural locales.
- In Sri Lanka, telecom operators are not only aggressively rolling out their 4G networks but are also laying the groundwork for the future introduction of 5G technology. This forward-looking approach demands the establishment of new telecom towers and the modernization of existing ones, ensuring they can handle elevated data speeds and deliver consistent connectivity.
- As the mobile user base in Sri Lanka expands, so does the demand for comprehensive network coverage. In response, telecom firms are bolstering their infrastructure with additional towers, particularly focusing on underserved and rural locales to guarantee dependable mobile services for all users.
- The Sri Lankan government is boosting digital inclusion, launching initiatives to uplift the nation's telecom infrastructure. These initiatives encompass policies that expedite tower construction approvals and stimulate investments, especially targeting rural and remote areas. Recently the government of the country has also ammended laws in order to allow independent companies to build towers across Sri Lanka, this move is anticipated to fuel the Telecom Tower Market in the region.
- To streamline costs and hasten network expansion, telecom operators are increasingly adopting infrastructure sharing. This strategy permits multiple operators to utilize a single tower, curbing redundant investments and enabling swifter network service rollouts.
- However, the telecom tower market in Sri Lanka grapples with hurdles like regulatory approvals and environmental considerations. Securing permits for new tower constructions can be a drawn-out process. Moreover, environmental impact restrictions on tower installations can lead to project delays and inflated costs. The country is also undergoing a economic crisis, which can further hinder the development of Telecom Industry thus impacting the infrastructure and Tower Market.
Sri Lanka Telecom Tower Market Trends
Rising demand for 5G to Drive the Market
- Sri Lanka's rollout of 5G networks is set to drive a significant uptick in demand for new telecom tower installations. Unlike 4G, 5G technology operates at a higher frequency and has a shorter range, necessitating a denser network of towers. As a result, both macro and small cell towers will see a surge in construction across urban and rural locales, ensuring comprehensive 5G coverage.
- For instance, in October 2023 - In Sri Lanka, Dialog Axiata conducted the inaugural trial of the Voice over New Radio (VoNR) service on a 5G Standalone network. This achievement not only highlights Sri Lanka's first foray into Voice over 5G but also underscores the pivotal role of Huawei, which supplied the project's infrastructure.
- Upgrading existing telecom towers in Sri Lanka to accommodate 5G technology is imperative. These upgrades demand new equipment that supports higher data speeds and reduced latency. Such modernization of the current infrastructure will require substantial investments, propelling growth in the telecom tower market as operators aim to bolster their networks.
- The Sri Lankan government is poised to be instrumental in the seamless rollout of 5G networks. By implementing policies that alleviate regulatory hurdles, offer incentives for infrastructure investments, and foster public-private collaborations, the government aims to accelerate the growth of the telecom tower market. Furthermore, government support will be pivotal in addressing challenges such as land acquisition and environmental issues.
- Sri Lanka is witnessing a swift rise in mobile phone penetration. With mobile phones becoming more affordable and accessible, even the rural populace is gaining access, driving up the demand for telecommunication services. This surge in demand is poised to bolster the Sri Lankan Telecom Tower Market. Data from the International Telecommunication Union (ITU) highlights this trend: mobile cellular subscriptions per 100 inhabitants in Sri Lanka surged from about six in 2000 to nearly 180 by 2011. Post-2012, the numbers have seen fluctuations, wrapping up at around 143.1 in 2022.
Operator-Owned Towers to hold a Major Share
- In Sri Lanka, telecom companies exercise full control over their network infrastructure by owning their towers. This control is vital for optimizing network performance, especially in a competitive landscape where service quality stands out as a key differentiator. By owning the towers, operators can customize their infrastructure investments to address specific coverage and capacity needs, eliminating the dependence on third-party tower companies.
- As Sri Lanka gears up for 5G deployment, telecom operators are poised to make significant investments in expanding their tower networks. Tower ownership provides operators the agility to strategically position new sites and upgrade current ones, aligning with 5G's technical demands. Such investments empower operators to cater to the surging demand for data services and deliver enhanced connectivity.
- For instance, as of May 2024 - Sri Lanka's government has unveiled plans to permit third-party companies to construct telecom towers. These changes are on the horizon as the nation seeks to amend its Telecommunications Regulatory Commission Act (TRCSL) for the first time in nearly three decades. The proposed amendment aims to transition the telecom site construction market in Sri Lanka from its traditional model—jointly managed and funded by Mobile Network Operators (MNOs) and the government—to one dominated by independent tower companies (towercos). If the proposal is ratified, it stands to significantly enhance the attractiveness of Sri Lanka's tower market, especially given that operators currently lack the resources for last-mile 4G and 5G rollouts.
- To streamline costs and accelerate network expansion, operators with tower ownership are turning to infrastructure sharing agreements. This approach is gaining traction in Sri Lanka, with operators seeking cost-effective methods to broaden their coverage. These operator-owned towers not only underpin these collaborative efforts but also solidify their stronghold in the telecom tower market.
- According to the International Telecommunication Union (ITU), Sri Lanka witnessed a rapid rise in mobile cellular subscriptions during the early 2000s, soaring from about 0.43 million in 2000 to over 17 million by 2010. This upward trajectory persisted post-2011, culminating at roughly 34.6 million in 2022. Such consistent growth in mobile subscriptions underscores a positive outlook for internet and telecommunication services in the region, subsequently propelling the growth of the Telecom Tower Market.
Sri Lanka Telecom Tower Industry Overview
The Sri Lanka Telecom Tower market is fragmented, with the presence of major players like Bharti Airtel Lanka, Sri Lanka Telecom PLC, etc. Players in the market are adopting strategies such as partnerships, agreements, innovations, and acquisitions to enhance their service offerings and gain sustainable competitive advantage.
- July 2024 - Sri Lanka's Telecommunications Regulatory Commission (TRCSL) is set to construct 276 towers. This initiative is designed to enhance mobile broadband connectivity and aid in the rollout of 5G. These advancements are crucial for the government's ambition to elevate the nation's digital economy to a value of USD 15 billion by the year 2030.
- May 2024 - Edotco, an infrastructure subsidiary of Axiata Group based in Malaysia, is currently concentrating on the less regulated, multi-purpose, 5G-ready pole business in Sri Lanka. The company has established over 700 of these sites and achieved a 1.3x tenancy ratio, a key performance indicator (KPI) utilized by tower companies to assess the sharing levels on their towers. With new legislation broadening the market, Edotco and other entities are eyeing Sri Lanka as a lucrative business opportunity.
Sri Lanka Telecom Tower Market Leaders
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Dialog Axiata PLC
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Mobitel (Pvt) Ltd.
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Hutchison Telecommunications Lanka (Pvt) Ltd.
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Bharti Airtel Lanka (Pvt) Ltd.
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Sri Lanka Telecom PLC
*Disclaimer: Major Players sorted in no particular order
Sri Lanka Telecom Tower Market News
- August 2024 - According to the president's office, Sri Lanka's telecommunications regulator has granted a license to Starlink, the satellite division of SpaceX owned by Elon Musk, to offer satellite broadband services in the country. This move follows Sri Lanka's parliament passing a new telecommunications bill, marking the first amendment to the law in 28 years, thus facilitating Starlink's entry into the nation.
- January 2024 - Jio Platforms, the telecom division of Reliance Industries Ltd (RIL), is one of three entities showing interest in acquiring the Sri Lankan government's stake in Sri Lanka Telecom PLC, the state-owned telecommunications firm. Colombo, having decided to divest its stake in the national telecom services provider, invited proposals from potential investors.
Sri Lanka Telecom Tower Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 5G deployments driving momentum for tower leasing
5.1.2 Increasing Smartphone usage
5.2 Market Challenges
5.2.1 High infrastructure costs associated with telecom infrastructure
5.2.2 Environmental concerns about power supply systems to towers
6. MARKET SEGMENTATION
6.1 By Ownership
6.1.1 Operator-owned
6.1.2 Private-owned
6.1.3 MNO Captive sites
6.2 By Installation
6.2.1 Rooftop
6.2.2 Ground-based
6.3 By Fuel Type
6.3.1 Renewable
6.3.2 Non-renewable
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Dialog Axiata PLC
7.1.2 Mobitel (Pvt) Ltd.
7.1.3 Hutchison Telecommunications Lanka (Pvt) Ltd.
7.1.4 Bharti Airtel Lanka (Pvt) Ltd.
7.1.5 Sri Lanka Telecom PLC
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
Sri Lanka Telecom Tower Industry Segmentation
The telecommunication market is largely concerned with the operations and provision of infrastructure for transmitting data - voice, image, sound, text, and video. To expand its network and services, the telecommunication market relies on towers, which are used to mount telecommunication networking and power equipment.
The Report Covers Sri Lanka Telecom Tower Companies and the Market is Segmented by Ownership (Operator-Owned, Private-Owned, MNO Captive Sites), by Installation (Rooftop, Ground-Based), by Fuel Type (Renewable, Non-Renewable). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.
| By Ownership | |
| Operator-owned | |
| Private-owned | |
| MNO Captive sites |
| By Installation | |
| Rooftop | |
| Ground-based |
| By Fuel Type | |
| Renewable | |
| Non-renewable |
Sri Lanka Telecom Tower Market Research FAQs
What is the current Sri Lanka Telecom Tower Market size?
The Sri Lanka Telecom Tower Market is projected to register a CAGR of 3.57% during the forecast period (2024-2029)
Who are the key players in Sri Lanka Telecom Tower Market?
Dialog Axiata PLC, Mobitel (Pvt) Ltd., Hutchison Telecommunications Lanka (Pvt) Ltd., Bharti Airtel Lanka (Pvt) Ltd. and Sri Lanka Telecom PLC are the major companies operating in the Sri Lanka Telecom Tower Market.
What years does this Sri Lanka Telecom Tower Market cover?
The report covers the Sri Lanka Telecom Tower Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Sri Lanka Telecom Tower Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Sri Lanka Telecom Tower Industry Report
Statistics for the 2024 Sri Lanka Telecom Tower market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Sri Lanka Telecom Tower analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
