The stimulus packages being worked up by governments the world over all seem to have a broadband component. Even the Sri Lanka government which barely has enough money to pay its bills, is thinking of launching a USD 100 million satellite for high speed Internet (I guess this means broadband?). Leaving aside the insanity of the Government of Sri Lanka operating satellites, even the other proposals to provide government subsidies to rollout fiber networks can have bad effects that need to be thought about, before taxpayer money is doled out. As the Economist points out:
Another drawback with big state subsidies for broadband is that they could distort the market and create regulatory problems. Fibre networks are already being built by private companies in many countries; the prospect of handouts might cause them to delay their plans, in the hope that the state will pay for things they were going to do anyway. Weaker operators, unable to finance new networks, would certainly like governments to come to their aid. To ensure that governments do not end up creating new monopolies, it makes sense to insist that any firm that builds a network using state subsidies must also open it to rivals, unpopular though this is with those lobbying for aid.
LIRNEasia’s evidence based views on this question can be found both in our book and on our blog.
3 Comments
Chanuka Wattegama
Two questions posed to Amali Nanayakkara, CEO, AirTel Lanka by a local journalist and her answers below:
Q: Do you use satellite technology to provide mobile connections in India?
A: No
Q: Did you have any idea of using that technology in Sri Lanka?
A: It was what some people thought. I don’t know why. We were this late because we took time to build towers. In India we use towers and in Sri Lanka too we do that.
(Divaina Sunday Edition – Feb 01, 2009)
What is this sudden satellite madness? I am clueless. Can somebody shed some light?
Rohan Samarajiva
“The TRC chief said these satellites would bring about a huge foreign exchange saving as Sri Lanka was now dependent on satellites of other countries for broadcasting, telecommunications and even defence-related information.” This is a direct quote from the Sunday Times article on the launch of a Sri Lanka satellite(s).
I suppose the Director General believes that Thuraya is the real competition to Dialog, Airtel, et al.? And that Rupavahini signals are being picked up by invisible satellite antenna inside the TV set? And that Defense.lk is hosted on a satellite (I am sure he does not think it is hosted on mobiles like some people in government thought at one point about porn). These are just wild guesses. I have no clue, like you. Perhaps the wisdom of the crowd can help.
Just a note to the Times reporter: one must never say or write “foreign exchange”; it must always be said and written as “valuable foreign exchange.”
Rohan Samarajiva
More debate on spending taxpayer money on broadband rollout in the US. The US has imposed open access rules on operators that accept subsidies, which is a good thing.
LIRNEasia is hiring: Senior Researcher
LIRNEasia is looking for a talented individual to join the team as a Senior Researcher to drive impactful research. The full job description can be accessed below.
Request for Proposals: Development of a website for the Asia AI4D Observatory
LIRNEasia is inviting proposals from qualified web development firms, service providers and consortia of individual professionals to design, develop and deploy a public-facing website for the Asia AI4D Observatory. The website is intended to serve as a searchable, interactive regional knowledge repository and engagement platform, making evidence and resources on responsible artificial intelligence easy to discover, use and share.
LIRNEasia is hiring: Intern – Data Annotation
LIRNEasia is looking for a talented individual to join the team as an Data Annotation Intern. The full job description is available below.
Links
User Login
Themes
Social
Twitter
Facebook
RSS Feed
Contact
9A 1/1, Balcombe Place
Colombo 08
Sri Lanka
+94 (0)11 267 1160
+94 (0)11 267 5212
info [at] lirneasia [dot] net
Copyright © 2026 LIRNEasia
a regional ICT policy and regulation think tank active across the Asia Pacific