5G launch to be delayed at least by one year
Deploying the 5G network in Sri Lanka will be delayed by at least one year due to the prohibitive costs and the current economic crisis along with ensuing issues after COVID-19.
Thirukumar Nadarasa, CEO Hutchison Telecom Sri Lanka told the Business Times last week that deploying the 5G network cost double of what it cost for deploying the 4G network. “Moving to the pandemic and the ensuing crisis, the prohibitive costs will delay the launch of this network by at least a year,” he said.
He was of the opinion that this network is ahead of its time. “All along, the 3G and the 4G networks were touted as the next big thing. 5G is basically another bigger data pipe and another advanced version of 4G offering more capacity for consumers,” Mr. Nadarasa added.
Explaining further he added, “I think the 5G story is a bit hyped up. In today’s context, one should be careful when they deploy 5G. We must seriously think about the best time to introduce this network as there is no serious use case where 5G is needed.”
He pointed out that the smartphone penetration in the country is barely 50 per cent and barely half of the population does not even have a 3G phone, which really begs the question if a 5G network is worthwhile at this time.
“The 5G handsets are extremely limited and expensive. Therefore, the percentage of people who can afford to use a 5G handset and services is also limited. I would much rather see the industry expanding broadband connectivity for people to have a basic broadband connexion.”
When asked if Hutchison Telecom Lanka will be left behind by the rest of the industry eventually when launching the 5G network, Mr. Nadarasa said the strategy adopted by his company is to be aligned with the core expertise of affordable, accessible wireless mobile services. “We avoid diversifying into other sectors where we have little knowledge or core competence,” he added. Mr. Nadarasa believes that the telecom industry is reaching a certain level of maturity, not only in Sri Lanka but globally as well.
“When mobile penetration has reached more than 100 per cent, you have to start looking at how many players you need to service a market. Sri Lanka had five mobile operators. In such a situation, consolidation was the name of the game, which is why we merged with Etisalat.”
He also noted that compared to certain countries in Asia, Sri Lanka is quite late in implementing mobile number portability. “Some countries in Asia implemented this a decade ago. Sri Lanka should have perhaps introduced it earlier. However, the industry has formed a separate company and we should be able to introduce mobile number portability in the next six to nine months.”
When queried if Sri Lanka has enough size and doesn’t warrant such a global operator as Hutch to be in the country, Mr. Nadarasa noted that it is not so much the scale but the opportunities a market offers which make a business case for the company to operate.
He also added that with less than 50 per cent broadband penetration, there is ample opportunity for the company to grow in the broadband business. “We deployed a nationwide 4G network that covers 95 per cent of the population, which we will continue to expand and grow in the mobile broadband penetration business in the country.”
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