Indian Broadband Policy and Regulatory Resources

Market Entry

A drop in scores for market entry in the mobile sub‐sector compared to the last 2007-2008 survey can be clearly identified. The general lack of transparency in granting operator licenses and the lack of a unified license system may have caused this. Further, some of the stakeholders commented on the lack of rigid provisions to govern market entry and exit by investors, stating that ad hoc entry and exit by foreign investors in the mobile market may threaten the long term sustainability of the sector; this comment was made especially with reference to investors pulling out of Tigo (now Etisalat). While this attitude may explain the declining trend in TRE scores for market entry, the fact remains that this is common to all FDI attracting sectors. It should also be pointed out that local investments would not have been sufficient to meet the capital requirements of Sri Lanka’s telecom sector.