Sri Lanka Telecommunications Q1 2020
We hold a neutral view of the Sri Lanka telecoms market as organic mobile market growth begins to slow. The low 4Gpenetration rate provides strong opportunities for operators to upsell premium data services to legacy 2G and 3G subscribers.Surprisingly, operators are committing to 5G trials and are committing considerable resources into the new generation networks,although we view that monetisation opportunities for their fledgling LTE networks are still very strong. We also maintain our keyconsolidation view, and believe that Airtel will likely be marginalised, and should seek an exit from the market as the lack of a 4Gnetwork makes its mobile offering rather uncompetitive.
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