Submarine cables in Sri Lanka historically land nearby Colombo at Mount Lavinia. And they have been the branch from main cable’s trunk. Not any more. The SEA-ME-WE 5 submarine cable will directly hop at a new location – Matara. Therefore, this new submarine cable’s landing, at 160 km from Colombo, will make Sri Lanka’s international connectivity more resilient.
I write this sitting at a UN ESCAP consultation on the Asia Pacific Information Superhighway in Paro, Bhutan. Bhutan is a country of around 800,000 people which has two fiber cables connecting the main cities to the Indian cables in the Siliguri area. Actual broadband user experience is patchy. Because there was no official representative from Sri Lanka, I was asked to stand in. My presentation is here.
Asian countries, despite being located in the world’s largest landmass, are interconnected through submarine optical fiber cable networks. Ciena Corp. has found that a terrestrial cable gets cut in every 30 minutes and a submarine cable is damaged in every three days somewhere in the world. And the IT downtime costs more than $25 billion a year to the customers. Ability to rush the maintenance crew ensures the terrestrial cables’ lower downtime than its underwater counterpart.
The deployment of 4G wireless as a complement to ADSL last mile by Sri Lanka Telecom suggests that the convergence process that was marked by having a single CEO for the fixed and mobile arms may be reaching its logical conclusion. Sri Lanka Telecom said it had expanded broadband service coverage by deploying fourth generation wireless technology to areas that are not served by its wired network. From January data volumes on all broadband packages had been increased. SLT provides broadband services through ADSL (assymetrical-digital-subscriber-lines), fibre to home and now through 4G LTE (fourth generation long term evolution) wireless technology. At Ruwanwella, in Sri Lanka’s Kegalle district the firm said it had given a gratis broadband connections to the public library and school which had demonstrated downlink speeds of 50 Megabits per second.
A subsidiary of the incumbent telco has launched WiMAX 16e service in Sri Lanka. The launch has come after a long preparation period, but if the price and quality parameters are right, the chances of success are high since broadband is about to take off. Sky Network CEO, Mahinda Herath said that WiMAX 16e broadband service offers a superior broadband experience for households, the corporate sector and SME. He said the offering will soon incorporate other value added features such as usage and quality of service based charging models and web-based payment options. “Our vision is to give each and every person in Sri Lanka access to high-speed broadband connectivity and digital content anywhere in the island at any time,” Herath said yesterday while addressing an audience at the launch of the new product.
While voice revenues are declining, it appears that broadband will save the day. But only the day. The theoretical maximum of ADSL connections is 869,190 at this time in Sri Lanka. Many of the fixed lines cannot be used to supply ADSL or are connected to government departments, pensioner’s homes, etc. which may not want broadband, so the actual market size is lower.
In 2006, when I expressed skepticism about government claims that Jaffna was getting a fiber optic network in the middle of the war, I was assailed. Unless SLT has built a second cable in 2009, in addition to the one they built in 2006, I was right. This would be the right time for Mr N.P. Perera, or whoever he was, to apologize.
Given coincidence of the SAARC Minister’s meeting and the release of LIRNEasia’s twice-a-year price benchmarks, I was tempted to see how much progress had been achieved, with regard to the Colombo Declaration’s para 6 which called for low intra-SAARC international voice tariffs. Not much progress to report, unfortunately. On the fixed side, the only countries with intra-SAARC tariffs lower than to non-SAARC countries, are Bhutan and Nepal. Bhutan, because it has a special price for India (other SAARC prices are high) and Nepal because it has not changed its extremely high tariff structure (and the lower-by-comparison intra-SAARC prices). Lanka Bell in Sri Lanka offers low prices to India, but our methodology does not capture that, because we take the prices of the largest operator, SLT.
Today, Lanka Bell (the cable partner of Reliance through Flag), announced that calls to India would henceforth cost LKR 0.07 a minute, among the lowest IDD rates offered. They have not got around to updating their website, but newspaper ads should count for something. What is causing downward pressure on international call rates to India? Just a short time back, Dialog cut prices to India.