October 11, 2006 (LBO) – Sri Lanka’s mobile phone penetration is due to peak at 38 percent in 2008, amidst regulatory bottlenecks to iron out crucial issues like interconnection and the management of frequency spectrum, an equity research report said Wednesday. However, operators have found loopholes within the law which allows them to offer ‘seasonal’ promotions for a limited period. Operators also take the stand of ‘informing’ the regulator of an impending tariff revision, and assumes it is approved, if the regulator does not respond within a week. There are over 4.3 million mobile phone users in Sri Lanka for the six months to June, according to Central Bank figures, with growth averaging at about 50 percent.
Growth has been led by falling handset prices and attractive tariff packages, which have helped cellular phone penetration (mobile connections per 100 people), climb to 21.5 percent in June from 17.09 percent at the start of 2006, stockbroker, Capital Alliance Securities said.
Sri Lanka’s four player mobile