Airtel making plans to leave Sri Lanka?

414

You might want to hold off on getting that Airtel connection folks, because Airtel may soon become Etisalat! According to the Economic Times, apparently Airtel is currently in advanced talks to sell off its Sri Lankan operations to Etisalat, with Standard Chartered acting as the advisor.

Airtel arrived in Sri Lanka in 2009 as the 5th mobile operator and started out with some pretty tough luck. Our local operators were not willing to interconnect with it, worrying about being dominated due to Airtel’s size and afterwards it had to deal with almost causing a price-war!

Fast forward to today.. things aren’t really a whole lot better for Airtel. Despite having invested over $300 million in its network, it hasn’t seen any growth in the number of subscribers and continues to make losses while remaining as the 5th largest mobile operator in Sri Lanka.

According to a person aware of the development speaking on why the deal was important to Etisalat, “In a country like Sri Lanka, an operator has to be either the largest or the second-largest to make money.”

Etisalat currently, is the 3rd largest mobile operator in Sri Lanka with 5 million subscribers. Should this deal actually happen, Etisalat could gain 1.7 million subscribers to overtake Mobitel and jump up to 2nd place in the market. Should the deal go down as expected, we probably would see an increase in competition amongst the mobile operators, to fill the vacuum that would be left by Airtel.

As for Dialog, it probably isn’t too worried in the short term since it’s currently the market leader with 8.7 million subscribers. However, for the long term it may have to step its game up, should Mobitel do the same, and of course there’s the bigger and aggressive Etisalat coming into the picture.

Amongst all the chaos with the big 3, there’s one operator that would have to compete twice as hard should this deal happen, in order to survive – Hutch. Currently its the 4th largest mobile operator in Sri Lanka and should Airtel leave, the smallest operator in Sri Lanka.

Despite all the competition, at the end of the day chances are that there won’t be a giant change in the market. As we can see with Airtel’s situation it’s not easy for mobile operators to grow in Sri Lanka, new deals and packages only bring so many subscribers and unlike the US operators here don’t have nice exclusive devices to attract subscribers (well except Dialog).

However, remember folks this is all really just speculation. Airtel, Etisalat and Standard Chartered have yet to comment on whether the deal is actually even happening.

Anyways, we’ll be keeping a watchful eye on this story, so stay tuned for any new developments folks!

 

 

Have something interesting and IT related to share? email the [email protected]

Article-ad

7 COMMENTS

    • i have proof this air tell lost. because specially high ranking officers including sub contractors large scale frauds.you know mackwoods colombo supplying manufacturing defects power generators for stand by power supply for sri lanka air tell auto starting system malfunction behind large scale frauds CEB power faliure time many air tell power generators no start. result is tower battery bank week and week signal. also un qulified sub contractors handelling this manufacturing defects power generators. this battery bank only eight hours. if battery bank qulity good. another problem is sri lanka huwawei suppliyng all low quality electronic equpment for sri lanka air tell. now you see many areas air tell week signal. main thing is power supply mens CEB power cut time many power generators malfunction . EA16 7.5 KVA mackwoods manufacturing defects power generator having more than 250ltrs capacity fuel tank but air tell sub contractors suppliying some times 20ltrs only. some times this power generators man mode starting also fail.after few minuits situation worst no signal air tell head office high ranking officers bairthday party with sub contractors result is week signal and air tell complitly lost now try to leave sri lanka this is the true story. any one sri lanka air tell chalanging my this comment i am ready to face

  1. Air Customer service is very poor. recharged 99 card as mentioned in the card 400MB free and 99 free min, i couldent used even 10 MB and call not more than a minute, I spoke to the team call centre leader prveena Fernandos i was very very unhappy about the insident

  2. yeah with dialog buying out trc. .airtel and other operators have no chance in sl

    consumers wud have got the best off tarrifs. ..alas that wud not happen!

LEAVE A REPLY

Please enter your comment!
Please enter your name here