Sri Lanka gears up for 5G rollout by year-end, spectrum auction imminent

Sri Lanka is on track to roll out 5G services islandwide by the end of this year, with a spectrum auction slated to take place within the next few months, according to Digital Economy Deputy Minister Eranga Weeraratne. 

The move is anticipated to significantly boost internet speeds and enhance digital connectivity, particularly in rural areas.

Speaking at a press conference for Sri Lanka’s first AI Expo and Conference, Weeraratne confirmed that the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) is finalising the procedures for the tender. 

“The TRCSL is already ready with all the required documentation and the proceedings to go for the tender,” he stated. 

“There will be another final discussion and thereafter they will announce the auction that is happening in 51 days from the final discussion day. So, within this year, 5G will be coming.”

According to the industry sources, the final discussion is scheduled for next week. 

Meanwhile, Weeraratne affirmed the government’s intention to retain its majority stake in Sri Lanka Telecom PLC and its subsidiary Mobitel. 

The upcoming auction follows an extensive consultation process initiated by the TRCSL. An amended consultation paper dated March 27, 2024, outlines the framework for assigning spectrum for advanced broadband services, including 5G. The regulator plans to offer spectrum lots in the 3.5 GHz and 27 GHz bands, each for a 10-year period. Specifically, four 50 MHz lots will be available in the 3.5 GHz band and four 100 MHz lots in the 27 GHz band.

This process has been updated to reflect significant consolidation within the Sri Lankan telecom market. A key development was the approved merger between Dialog Axiata PLC and Bharti Airtel Lanka, which was set to create a combined entity, holding approximately 63 percent of the mobile subscriber market share. 

As part of this market restructuring, some spectrum holdings in the 850, 900 and 2300 MHz bands were redistributed among the operators to create more efficient, contiguous blocks. Notably, the remaining spectrum in the 2.6 GHz band, initially part of the planned auction, has been assigned to Hutchison Telecommunications Lanka.

The TRCSL has proposed three options for assigning the 5G spectrum: a direct auction open to all qualified bidders, an administrative assignment to a single wholesale network, which could be a joint venture of the existing operators or a new entrant or an auction for the existing operators with attached sharing obligations such as infrastructure sharing or providing national roaming.

The stakeholders have submitted feedback on these options, including comments on auction design, spectrum caps and potential set-asides for private 5G networks.

To ensure widespread 5G access, the TRCSL intends to attach “light rollout obligations” to the new licences. The licence holders will be required to launch commercial 5G services at a minimum number of base station sites in each of the country’s districts within the first three years.

Participation in the auction is expected to be limited to telecom operators who hold a mobile licence under the Sri Lanka Telecommunications Act, currently operate a 4G mobile network and have no outstanding licence fees.

The push for 5G is seen as a critical component of Sri Lanka’s economic recovery, with the potential to “improve the existing services, enable new use cases and promote the country as an investment destination”. (NF)