As a technological leap, 5G holds immense promise for the country, aligning it with global advancements aimed at bolstering economic growth through enhanced connectivity and innovative applications, especially at a time when the country is recovering from a crisis.
While commercial licensing for 5G in Sri Lanka is yet to be finalised, trials are underway as the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) navigates its complexities with consultancy from the World Bank.
In an interview with The Sunday Morning Business, Rakuten Symphony Senior Sales Director Asia-Pacific (APAC) Sales Randhir Amarasinghe shared insights on the current state and future prospects of 5G deployment in Sri Lanka. He highlighted the regulatory landscape and the strategic role of telecommunications companies in shaping the country’s digital future.
He emphasised the importance of regulatory clarity and investment in infrastructure to support widespread adoption. Amarasinghe noted that while neighbouring countries like India had made significant strides in 5G deployment, Sri Lanka faced unique challenges such as economic constraints and the need for substantial investment in new technology.
Following are excerpts:
Can you provide an overview of the current state of 5G network deployment in Sri Lanka? How do you view 5G technology ?
In Sri Lanka, commercial licensing for 5G has not been issued yet. The TRCSL is currently evaluating the best business model for the country, with consultancy from the World Bank. However, licences have been issued for trial purposes to some operators.
From a regional perspective, many countries are actively deploying 5G. For instance, our neighbour India has extensive 5G deployments, which are expected to significantly boost its economy by enhancing Artificial Intelligence (AI) and machine learning, and enabling low-latency applications.
Industries such as smart manufacturing, agriculture, and smart cities are leveraging 5G technology to improve efficiency and innovation. Globally, countries recognise the importance of 5G for economic growth.
How ready do you think the Sri Lankan market is for 5G adoption, both in terms of infrastructure and consumer demand? What challenges do you foresee?
One major challenge is the return on investment for operators. Although some operators are yet to profit from 4G deployments, the demand for rich data is high. However, the significant investment required for 5G is a concern due to the current economic situation and the need for US Dollars.
Sri Lanka has one of the lowest Average Revenue Per User (ARPU) rates globally, at approximately $ 2 per person. This low revenue makes it difficult for operators to justify large investments in new infrastructure.
Additionally, the cost of 5G-enabled devices is a barrier, as many Sri Lankans still use 2G phones; maintaining old technologies adds to the burden. The regulator will need to decide on measures to encourage or subsidise 4G and 5G-ready devices, similar to strategies adopted in other countries in Asia.
The primary challenge remains economic, but with the right policies and support, Sri Lanka can move forward with new technologies.
Consumer demand is a concern, particularly regarding the affordability of user devices. This will take time, similar to the adoption of 4G.
In terms of infrastructure, I don’t think Sri Lanka can achieve the same coverage as 4G, which covers about 96% of the population. Due to the higher frequency of 5G, coverage is less extensive. The main advantages of 5G are throughput and low latency, requiring many small sites like lamp poles to cover areas, which Sri Lanka has not planned for yet.
Operators are still struggling to acquire sites, leading to the proliferation of unsightly installations on rooftops. Proper township planning is lacking, which affects the deployment of necessary infrastructure like fibre optics and lamp pole sites. In developed countries, such infrastructure is more systematically integrated into urban planning.
Whenever a new technology emerges, operators face challenges in serving the population due to shrinking coverage areas, necessitating the deployment of more sites.
What are your thoughts on the affordability and competition for 5G in Sri Lanka?
There are two perspectives. From a technological advancement standpoint, widespread 5G connectivity is beneficial, However, for a country like Sri Lanka, affordability is a major concern.
Operators have invested billions of dollars, and it will be difficult to make 5G reachable for everyone initially. Only a certain percentage of the population might have access if licences are released.
Globally, some countries have policies on 5G due to economic and security concerns; Sri Lanka will need to make a policy decision considering several factors.
How do you view the current telecommunication services in Sri Lanka? Are they up to standard for attracting investors and setting up businesses, despite signal and network issues?
Telecommunication services are now a necessity, not a luxury. The current infrastructure in Sri Lanka is not bad, but there are challenges – particularly the lack of towers for certain populations. Revenue constraints for operators also play a role. The Government needs to drive initiatives to serve underprivileged sectors, possibly through common infrastructure.
Agencies like the TRCSL have tried to improve rural connectivity for education during the pandemic, but I have not been updated on their current status.
Benchmarking for operators is necessary to ensure adequate user coverage. Our coverage is relatively good compared to regional operators, but attracting investors is different. Investors are concerned about intellectual property, information security, and data breaches. Sri Lanka needs to reach a higher level of trust in networks.
Network security measures are in place, but they primarily focus on network protection rather than investor concerns. Incidents of hacking and attacks occur, but they are not unique to Sri Lanka. Globally, network security is a priority, and Sri Lanka must follow international standards to protect both consumers and investors.
Trusted networks can significantly attract foreign investments by providing a secure and reliable environment for business operations. Potential security risks associated with espionage and cyberattacks, thus entailing a more secure network infrastructure, can enhance trust among businesses and foreign investors as they are assured of the integrity and security of the network. Trusted networks are more likely to have robust data privacy measures in place, protecting consumer data and increasing confidence in digital services.
Policy decisions are needed to protect businesses. This will attract more investors. However, Sri Lanka has often opted for price-sensitive technology providers due to economies of scale without robust policies like India or other countries.
India maintains greater control over its data and digital infrastructure, ensuring that sensitive information is not compromised or controlled by foreign entities. That has helped India in the last few years to attract hi-tech investors, data storages, research and development, sophisticated manufacturing, and global services centres to the country, creating more jobs and significantly increasing Foreign Direct Investments (FDIs). Similar long-term strategies and decisions for 5G could help boost investor confidence in Sri Lanka.
How do you envision 5G networks transforming various industries in Sri Lanka? What is the potential impact, especially in healthcare, education, and manufacturing?
5G is seen as an economic enabler. Beyond consumer benefits like faster downloads, it can revolutionise AI, machine learning, and other technologies, significantly contributing to Sri Lanka’s economy across multiple sectors. Benchmarking and Government-driven policies are essential.
5G can significantly boost production efficiency, impacting the Gross Domestic Product (GDP) positively. Industries can adopt automation, AI, and machine learning, but more policy support is needed. Some companies already leverage these technologies due to international standards, but local companies lag behind.
Innovation can enable in-house solutions, reduce societal bottlenecks, and improve services like self-service portals in local languages. Likewise small, incremental changes can lead to substantial advancements in the next five years, benefiting rural education, healthcare, and Government services. Real-time applications, like remote surgeries, demonstrate 5G’s potential in saving lives and improving services.
Another benefit of 5G is its low latency, allowing for remote operations. For example, a surgeon in Colombo could perform surgery in Trincomalee using remote robots to perform surgery. However, Sri Lanka isn’t at that level yet due to affordability, sophistication, and equipment requirements.
However, in real-time, medical professionals can provide advice, monitor vital signs, and ensure immediate response during emergencies, reducing the chance of missing critical moments.
In mining, 5G can enable real-time digging and exploration.
Drones can be used beyond photography, such as disaster prediction and response. Internet of Things (IoT) sensors can relay real-time data, allowing remote measures to be taken. There’s immense potential, as seen in African and other South Asian countries’ applications.
Sri Lanka’s connectivity is decent in existing generations of technologies, but revenue constraints impact operators’ ability to expand. Government initiatives, such as during the pandemic to improve rural connectivity, were steps in the right direction, but consistency is key.
Operators face challenges due to economic conditions, making large-scale investments difficult for 5G. Long-term strategies and Government involvement, like Malaysia’s single 5G network or an operators’ consortium, could help it.
What are the key technological advancements your company is bringing to Sri Lanka’s telecommunication landscape, particularly in the realm of 5G?
At Rakuten Symphony, a subsidiary of the Japanese internet services conglomerate Rakuten Group, we follow the Open Radio Access Network (Open RAN) philosophy. Open RAN means the network components are not from a single manufacturer. We focus on software, allowing operators to choose their hardware and software freely, reducing proprietary and security concerns.
Open RAN enables innovation. In Japan, Rakuten Mobile, built by Rakuten Symphony, operates with around 250 network engineers, covering the whole country. This approach allows operators to develop various applications, enabling automation and machine learning. Traditional vendors’ proprietary systems limit this flexibility.
At Rakuten Symphony, we have demonstrated that significant long-term savings can be realised by eliminating proprietary components from one’s network infrastructure. This strategic removal enhances operators’ flexibility to fully embrace virtualisation, automation, and innovation, leading to substantial enhancing of services while reducing costs.
As various countries embrace Open RAN policies, there exists a significant opportunity for Sri Lanka to attract foreign investment, especially from Western nations focused on network integrity and security. By advocating for Open RAN in its telecommunications infrastructure, Sri Lanka can leverage Rakuten Symphony’s pioneering expertise in this area to position itself as a hub for secure and innovative network solutions.
PHOTO KRISHAN KARIYAWASAM