I was asked today by a reporter whether the Sri Lanka market could support another entrant. I answered, but wasn’t sure it would be carried accurately. Therefore, here is the answer.
The market should determine the number of suppliers in a market, not government officials. This requires two things: (1) an orderly policy on market exit, whereby, for example, suppliers have clear rules on what can be done about the assigned spectrum, existing customers, and so on; and (2) transparent license and renewal procedures that allow for as many licenses to be issued as possible within the constraints of spectrum.
Most developing countries lack both elements. Some like to issue licenses without addressing the need to allow for orderly market exit if the market cannot sustain the higher number of suppliers.