Sri Lanka
Sri Lanka's Telecommunications sector development has been embroiled in the face of a nearly two decade long conflict between the government and separatist Tamil Tiger Rebels.  The Tsunami and other natural calamities in recent years have also affected both existing physical assets and investment as well.  With the hope of enduring peace and a general improvement in the country's socio economic well-being, the sector is poised for rapid progress.  At present, the focus areas are to open the market to competition) and to build the network infrastructure.  There is a range of significant initiatives, such as the government has funded the installation of payphones across the countryside.  By 2004, there were already 204,000 payphones installed.  At that time there were 4.8 mn telephone lines in the country and an installed capacity of 5.8 mn lines.  Digitalization has almost reached 100% .

There have been severe supply restraints that have stunted the growth of the sector. At the end of 2005, the fixed line teledensity was a low 5%, in comparison to the bludgeoning demand. There were 250,000 fixed lines subscribers, waiting for basic telephone services in 2002, which grew to 400,000 towards the end of 2004.  The Emerald Isle has a teledensity, far lower than other countries with similar per capita GDP.  Sri Lanka has the dubious distinction of having a fast-dropping investment level in the telecom sector. It dropped from $190 mn in 2000 to $50 mn in 2001. This too is in a nascent phase of its development.

Bangladesh
Bangladesh is one of the more underdeveloped, densely populated countries in the world.  It has one of the lowest numbers of fixed phones per hundred people in the world.  It is one phone per 150 people, which is 6 times lower than that in neighboring India.

Besides, a host of natural calamities having adverse effects on the country's economy, and the slow growth of telecom network is compounded by highly inefficient public owned telecom industry. The country also needs economic and regulatory reforms.

The fixed line industry is dominated by state owned operators, and so is the ISP market. The mobile industry has few private players.

Nepal
Nepal is another country that has seen slow progress in the telecom space. The weak economy means that most investment has come through foreign institutional aid such as World Bank loans etc.  The county's mountainous topography has made it an uphill task to set up basic telecom infrastructure. Socio-political instability in the region also affected the development process.

Moreover, more than 98% of the population has no access to telephones. More than 60% of the existing phones are in Kathmandu alone. Rural services have been neglected largely as the setting up of a rural network would require significant investment. Overall 50% of the demand in the country for telephone access remains unmet.

But there have been some signs of progress. Progress has been made since 1995, accruing from foreign loans and the introduction of transparent tendering, which have increased threefold the number of lines that can be purchased for the same money. The state-owned Nepal Telecommunication Corporation is the dominant operator in all sectors.

Other SAARC Countries
Bhutan had been in isolation from the rest of the world till very recently.  The country's only link with the outside world had been the trunk-call facility to India since 1974.  It was only in June 1999 that the first television station was set up in the country. And that was the beginning of television sets, satellite dishes, and antennas making an appearance on the Himalayan Kingdom's regal, mountainous landscape.  It had been this terrain combined with a low economic capability that had hindered any development at all, in the telecom field.  There has been a burst of growth in the recent past, with fixed line subscribers doubling annually in recent years (teledensity still remains at 4%).  Investment has grown and there has been basic progress with infrastructure-building as well. Mobile, Internet networks, and markets remain highly undeveloped, with there being only a minute presence even today.

The Maldives archipelago boasts of a modern, and efficient telecom network. There is now complete land coverage with fixed line connections. There was a monopoly in the market till very recently, a telco owned jointly by the Maldives Government and a Cable & Wireless plc (UK) that is accredited with the building of this impressive infrastructure came in the picture. The company is the sole operator of fixed line services and of mobile services, (49% penetration of mobile network) and was until recently the sole ISP as well.

At SAARC Communication Ministers' Meeting held on May 22-24, 1998 in Colombo, a SAARC plan of action was finalized.  This, inter-alia, included calls for reduction of telecom tariffs to the lowest extent feasible, complete digitalization of inter-country links amongst SAARC countries preferably by December 1999, allocation of sufficient bandwidth for regional telecommunication links, setting up of websites/databases to exchange information on telecom standards, policies and technologies, adoption of Mutual Recognition Arrangements for equipment standards, and consultations to evolve common SAARC positions on telecommunication issues of regional concern at international fora. It would be fair to say that some amount of cooperation in the area would help the progress of the telecom industry.

Broadly speaking, it is socio-political factors that are the last roadblock in the way of extensive telecom development in the region. Most governments have been enthusiastic towards telecom progress and have created favorable environments for this. The region shall need highly innovative business practices, technology and services to address the real potential. The urban markets will reach its saturation soon, but it is the rural interiors that display the real opportunity and challenge. The area could prove to be a lucrative ground for telecom boom in the long run. And the telecommunications industry could contribute significantly to the development of these economies.  

The governments in the SAARC region may rightfully applaud itself as coming out a winner in the mobile phone segments with a combination of rightful de-regulation in regulatory framework and a focus on to increase the teledensity in the region.  This region gradually continues to be one of the most interesting platforms for the telecom evolution.  

Prashant Singhal, Industry Leader (Telecommunications), Ernst and Young
vadmail@cybermedia.co.in

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