Nishantha Palihawadana. Telecommunications Regulatory Commission of Sri Lanka

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1 Nishantha Palihawadana Telecommunications Regulatory Commission of Sri Lanka

2 Content Country Profile Technological Development of Broadband Stagers of Competition Regulatory Intervention Price Regulation QOS Regulations National Broadband Policy National Broadband Networks Future Direction

3 Country Profile Area 65,610 sq km Population (March, 2012) 20,277,597 GDP GDP per Capita 59.2 US $ Billion) 2,836 US$ Fixed Line 3,449,391 Cellular Mobile 20,324,070 Tele-density Fixed Service 17 Tele-density Mobile Service 100 Broadband Internet Subscribers 1.1 Million

4 Technological Development of Broadband Fixed Broadband Broadband was introduced by the incumbent operator Sri Lanka Telecom (SLT) in 2003 Dialog Broadband Networks entered to the Market in 2007 using wireless technology based on Worldwide Interoperability for Microwave Access (WiMAX) (IEEE d) In 2012 they have started providing Broadband services using LTE. Lanka Bell introduces broadband internet using WiMAX (IEEE d)

5 Mobile Broadband Dialog Mobile Introduced 3G Broadband services in Mobitel also introduced 3G Broadband services in Airtel is the new entrant to Mobile market with 3G services in Etisalat introduced 3G Broadband services in Hutchison the last operator to introduced 3G Broadband services in 2012.

6 Stages of Competition Monopoly Stage From 2003 to 2007 there was no competitor to the incumbent operator, Sri Lanka Telecom The prices were high Less Quality Introduce Competition The two operators Lankabell and Dialog entered to the Market to provide the Broadband Internet using WiMAX (IEEE d) They were unable to give proper competition due to high cost at the initial stage

7 Introduction of Mobile Broadband In 2007 Dialog Mobile and Mobitel introduced mobile Broadband through 3G HSPA Strong competition price per GB to come down drastically higher data transfer speeds. The initial cost spent on HSPA is substantially lower

8 Regulatory Intervention Identify the Challenges Price Regulation Quality of Service National Broadband Policy Increase Penetration Develop Infrastructure

9 Price Regulation Reduce the incumbent s submarine cable landing station charges by 50% in 2010

10 Price Regulation Until 2010 mobile broadband prices were high. Compaction was promoted resulting price reduction Current Mobile Broadband Prices Peak offpeak 2.4 US$ 2 GB 3 GB 3.5 US$ 2 GB 5 GB 2 US $ 2GB 2.8 US$ 3GB 5 GB

11 Mobile BB Price Reduction

12 Mobile BB Subscriber Growth 800,000 Fixed & Mobile Broad Band Growth : , , ,000 Subscribers 400, , , , Fixed 54,238 97, , , , ,100 Mobile 209, , ,945

13 Strategies Adopted to Price Reduction of Fixed Broadband In 2010, reducing prices of competitor lead to reduce price of the incumbent 1Mbps 10 GB price drop up to 12 US $ of the competitor 8 GB price drop up to 12 US $ of the incumbent

14 Strategies Adopted to Price Reduction of Fixed Broadband In 2011, again incumbent was forced to reduce prices by reducing the prices of the competitor 1Mbps 10 GB price drop up to 4 US $ of the competitor 25 GB price drop up to 12 US $ of the incumbent

15 In 2012 January incumbent operator has introduced high speed high volume tariff plans 16 Mbps 120 GB 8 Mbps 60 GB 4 Mbps 75 GB

16 Fixed Broadband Price Reduction 3 SLT 2.5 SLT 2 US$ per 1 GB LB SLT LB SLT 0.5 LB LB Mbps 2Mbps

17 Where are we today? ITU publication- Measuring Information Soceity -2012

18

19 Quality of Service Definition Technology neutral high speed data communication service with a broader bandwidth capacity not less than 1Mbps downlink, which enables the operation of wide array of applications and services online. Broadband Subscriber An internet customer who consumes grater than 100MB within a period of 30 consecutive days and using an access service with the speed equal or grater than 1Mbps to access the Internet will be regarded as a Broadband Subscriber.

20 Broadband Benchmarking Process Broadband benchmarking process started in (Recruited a consultant ) The Regulator measures the quality and published in TRC official website. Initially it was measured for the Fixed Broadband Services and subsequently for the mobile Broadband Services. The measurements were taken from dense populated areas and allow operators to upgrade their quality and in the process of measuring suburbs. Operators started to compete for higher speeds

21 QOS Improvement Fixed Broadband

22 Speed Test Facility Download Speed : Fixed Broadband: The average download data transfer speed (Single TCP secession to an International domain) of the service at any given time, within a period of 24hours should be maintained at or above 70% from the advertised bandwidth. Mobile Broadband Within a period of 24 hrs, the average download speed of the service between any two time slots of 60 minutes time interval should be maintained (Single TCP session to a server or servers designated by the TRCSL and with RSSI value better than -90dBm) on or above 30% from the advertised/provisioned bandwidth. Speed Reference: International Domain Methodology : Single TCP/IP Method

23 Removing Unlimited Data Plans Service providers offered packages with the unlimited marketing tagline to attract customers, but they in fact provided very low speeds of data transfer. QoS improvements have influenced operators to adopt traffic policies and introduce new packages to the market with pre-allocated data volumes to manage their network resources, instead of continuing with so-called unlimited packages capable of downloading any amount of data

24 National Broadband Policy National Priority will be Given to Broadband Deployment Potential Spectrum will be released to operators Incentives/Subsidies/ Tax concessions Red Tape will be removed

25 National Broadband Network Domestic Fiber Networks will be made available to Mobile Broadband Operators to Backhaul Gigabit Traffic - NBN National Broadband Network Advantages of Migration from Microwave to Fiber QoS Improvements (Backhaul /End User) Cost Effectiveness Scalability

26 Future Direction Increase more competition in the international connectivity Facilitate to develop more local contents Increase Island wide mobile Broadband coverage Fiber to the Home (FTTH) network

27 Thank You Ayubowan

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