Sri Lanka Telecommunications Q2 2019
We believe that there is a substantial rural population that remains underserved, and this segment presents the largestorganic growth opportunities for operators in the coming years. In urban areas, multi-SIM ownership is prevalent: users hold SIMcards of multiple carriers to take advantage of different promotional campaigns. The country's precarious tax regime, however, willlikely complicate investments, with the government starting in April 2018 to impose a levy of LKR200,000 on every mobiletower. We believe that asset divestment is an ongoing trend, as operators sell their tower assets to specialised towercos as part of aparadigm shift we refer to as 'operator-as-a-service'.
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