Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010CommunicationIn the economic developmentstrategy, the post andtelecommunication sector has animportant catalytic role to play.The government aims to strengthenthe private sector participationin investment particularly in thetelecommunication sector.As a result, the private investmentin the telecommunication sectorhas increased gradually. Thefixed phones for 100 inhabitants(teledensity) has increased from 16.8in 2009 to 17 in 2010 and mobilesubscribers per 100 people has alsoincreased from 69 in 2009 to 82percent in 2010.The availability of mobile phonefacilities has been expanded evento rural areas of the country ataffordable prices and therefore,the mobile subscriber density hasincreased significantly. During 2010,about 64 companies operated inthe country for providing varietyof telecommunication servicessuch as telephone facilities, datacommunication, trunk mobile radio,satellite broadcasting and cable TV. SriLanka Telecom is the only state ownedpublic utility enterprise involved inproviding telecommunication facilitiesand this has recorded Rs. 3.90 billionprofit (after tax) in 2010 and this isabout 400 percent increase of profitcompared to 2009.The government has paid specialattention for the developmentof infrastructure facilities in theNorthern Province during 2010. Inthis regard, Telecom has expandedits telephone and internet facilityup to the Jaffna Peninsula. Inaddition, the Postal Department hastaken several actions to developthe capacities of its offices in theNorthern Province in order to providea satisfactory service to people inthe province.The postal sector still uses traditionalmethods in delivering its services.Therefore, it needs to modernize itsservices in line with the present andfuture trends and needs.Chart 1.44 > Investment in the TelecommunicationSector (Rs: bn)Chart 1.45 > Progress of Fixed and Mobile Subscribers2005-2010250000060Rs. bn504030201002006 2007 2008 2009 2010Number of Subscribers20000001500000100000050000002005 2006 2007 2008 2009 2010Fixed SubscribersMobile SubscribersSource: Telecommunication Regulatory CommissionSource: Telecommunication Regulatory CommissionNote: Telecom investment on ducts cables, outside plants, telephone exchanges and transmission equipmentsSuntel Investment on network equipment and subscriber phonesLankabell investment on shelters, computer software, network equipment and customer premises equipmentIn cellular mobile industry telecommunication include telephone equipments , voice mail equipment and lease improvement91