Telephone availability in Sri Lanka is poor with waiting lists running into years in some areas. Most of the telephone exchanges use archaic technology, creating congestion at peak hours. The Central Bank of Sri Lanka estimates Sri Lanka's phone density at 0.93 per 100 people for a population of 18 million and with demand for fixed phones at nearly 282,000.
Sri Lanka allowed cellular phones in 1989 after it realized that was the quickest way to provide phones on the island. The island's cellular phone market is growing at 10% to 12% a month. In 1994 the number of cellular phones increased from 3,000 to 23,000 at year end, according to cellular phone firms. Sri Lanka Telecom (SLT) planned to install another 275,000 telephone lines, especially in rural areas, by the end of 1995. Analysts say this was far below the earlier target of 500,000 by that year and 800,000 by 2000. Foreign direct investment is urgently needed to help build the telecommunications infrastructure. The state-owned Sri Lanka Telecom, which now has a monopoly on land lines, is unable to expand its network fast enough due to lack of funds. The government plans to invest almost $600 million to improve telecommunications and add 385,600 lines to its existing network of 181,000 fixed lines by 1998. The Sri Lankan government recently unveiled plans for a a major telecommunications development package.
Due to the heavy public investment made in this sector during the last five years, Sri Lanka Telecom has expanded and modernised its service by replacing outdated switching systems and cable networks with modern and powerful digital switching systems. As a result, the capacity of exchanges and the number of direct telephone lines increased sharply and the quality of telephone service has substantially improved since 1993.
The country has started to privatize Telecom services in a bid to improve the telecommunication infrastructure. Deutsche Morgan Grenfell and the Development Finance Corp of Ceylon have won the tender to restructure Sri Lanka's telecommunications industry. The goals are to initially privatize at least 20 percent of Sri Lanka Telecom. The privatization trend should help in improving the telecommunication infrastructure in Sri Lanka.
Submarine cables extend from Sri Lanka to Indonesia and Djibouti. Currently there are two INTELSAT earth stations over Sri Lanka in the Indian Ocean. The state owned Ceylinco, has teamed up with COMSAT to Launch Sri Lanka's first satellite services network. The project, which envisages linking Sri Lankan offices and even homes to multiple sources of information via satellite, will be the island's first network to use satellite exclusively, say its promoters, Ceycom Global Communication Ltd., a collaboration of the Ceylinco Group and Comsat Corporation, the major shareholder of the global INMARSAT & INTELSAT satellite networks.
A Rs. 2 billion (US$ 40 m) initial investment, the Ceycom network has promised to provide, in addition to the traditional needs of data and image transmission and Internet services, an exciting array of new applications such as distance education, tele-medicine, video conferencing, private networks and mobile data services will catapult Sri Lanka into a new age of information technology.
US telecom giant, MCI Communications has started commercial service on its TAT-12 fibre optic cable between the USA and Europe and with the system in place MCI can now offer additional fibre optic connectivity to Sri Lanka, Slovakia and Hungary. The TAT-12 is owned by a consortium of over 50 telecommunications carriers from 38 countries and spans 6,500 km in two optical pairs for 300,000 two-way channels.
There are four firms which operate cellular services in Sri Lanka - - MTN Networks (Pvt) Ltd, a joint venture between Telekom Malaysia and Sri Lanka's Maharaja Organization conglomerate, Celltel, Mobitel and Call Link. There are a estimated 30,000 cellular phones on the island.
Ceylinco Group's new project, using a VSAT-based global communications system in cooperation with COMSAT, USA should improve the telecommunications infrastructure of Sri Lanka, and do much to expedite the economic situation in the country.
LISL began with a database service, and received technical help from its United States venture partner, International Internet Services, Inc. Three Sri Lankan companies also fund the venture: Lanka Ventures, Central Finance and Development Finance Corporation of Ceylon.
A connection to the Internet is made through a 64-Kb/second line leased from Sri Lanka Telecom. It is not a quality service, and the company is planning to change its connection. A TI connection to the Internet has been ruled out for now because it would cost LISL about Rs. 1 million a year ($21,000). Currently, LISL has about 50 customers, or connections and hope to increase their connection coverage. LISL offers the following services like World-wide e-mail connectivity, International store-and-forward fax, and other Internet systems such as FTP (file transfer protocol) Telenet, Gopher, Archie, Veronica, Jughead, On-line merchandising, Hotel and Air Line reservations and On-line video conferencing.
A registering fee of Rs.5,000($100) will get a user a 2,400-baud modem, 쌡nka Internet E-mailail software with a built in English/Sinhala/Tamil-language text-editor, 24-hour customer support and unlimited modem access to the Lanka Internet Network Operating Center located in Colombo, Sri Lanka. A monthly fee of Rs.1,500 ($30) allows users to send 100 messages units internationally each month. Additional usage costs Rs.1.50 ($0.03) per local message unit and Rs.15 per international message unit. These prices are comparatively high to the current US Internet service average of $15-20 per month for unlimited access to the Internet and regular telephone rates for e-mail.
Global Enterprise Services (GES) also provides Internet gateway for Sri Lankanetworks--and to India, Japan, Peru, Singapore and Venezuela. GES is an international provider of Internet servicers and internetworking solutions for individuals, corporations, governments and academic organizations.
Sri Lanka Telecom, which is to be privatized, is planning to install a Global System for Mobile Communication (GSM) while at the same time upgrading its mainframe computers.
Currently, most of the Internet usage lies mainly in the commercial sector. It is my belief that by the turn of the century more and more individuals will start getting hooked onto the Net as charges lower with increasing foreign competition. Early this year (1996) Sri Lanka has placed its business yellow pagesn the Internet World Wide Web under the Lanka Business Web branding.
Historically, basic business transactions and governments drove the information technology industry. Today, foreign firms who want a piece of the emerging markets pie, domestic businesses such as the Sri Lanka Stock Exchange, and the general learned populous who simply want to be on the information highway and need basic phone capabilities drive the telecommunications industry. During the past five year period productive sectors like agriculture, industry, trade and commerce have developed placing a greater demand on hi-tech information services. Especially the fast growing number one trade export industry in the country, the garment industry. Sri Lanka is earmarked to be the next India or Singapore, but to get there it needs a supporting infrastructure that is attractive to international businesses.
Currently very few households have personal computers let alone televisions. In 1992 there were 50 televisions per 1,000 population. Sri Lanka has no cable television as yet and has three television channels that transmit mainly in the evening hours. However, growing use and need of telephones, as well as the desire to access computer networks and the Internet, will mean the country will need a million telephone lines by the end of the century, analysts say.
Since Sri Lanka has to link its telecommunications network with other countries it is very important to have equipment and network which are compatible with the advanced telecommunications network of these countries.
Major Customers:
As Sri Lanka inches its way towards its stated goal of becoming South Asia business hub, the country businesses - from textile to telecommunications firms - are embracing information technology in a cautious but determined way.
1. The Government
Air Lanka
In late April 1994 Air Lanka, Sri Lankastate-owned air line service signed up to use CargoluxCHAMP Cargohost computer system. The CHAMP (Cargo Handling and Management Planning) system will manage all cargo loading and management functions for Air Lanka around the world putting the company in the cutting edge of air line service and superior customer service. CHAMP has a wide range of functions including cargo revenue accounting, operations analysis, shipment planning and load update status.
Colombo Stock Exchange
The multimillion dollar contract awarded by the CSE to install a trading system offering global access is a good indication of the growth potential of Sri Lankavibrant information technology sector. The system will be installed by the authorized dealers for Sun Microsystems in Sri Lanka. Once installed, the CSE will become the worldfirst exchange to have such a system, offering global access to shares for investors whether they be in Hong Kong or London via a fully open platform which will be plugged into the Internet. The contract is estimated to be worth US$2-3 million.
The Daily News
Sri Lankalargest circulation newspaper the Daily News went on-line even before dailies in Hong Kong got hooked on to the global network.
2. Private Sector
The private sector participation in the telecommunications industry has opened the door to competition and technological advance. Accordingly, a number of private operators have been granted licenses to provide some of the basic value added services to Sri Lanka. The participation of the private sector in managing the provision of the value added and data services has recently shown marked improvement. At present, five types of value added services are being provided by the private sector - Radio Paging Services, Cellular Mobile Telephone, Pay Phone, Trunk Telecommunications Network and Mobile Trunking Radio Network
There are a lot of qualified university graduates in the computer field, but they are not being trained in a specific part of the industry that will make them professionals in that sector. Most of them have plenty of theoretical knowledge, but lack practical knowledge. In the major cities computer literacy is high, and many young people are well aware of latest upgrades of soft ware programs. When Microsoft Windows '95 was released it was embraced with open arms.
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