Sri Lankan fixed and mobile operator, negotiation with telecom regulator
Situation
A Sri Lankan fixed and mobile telecom operator needed help in defining arguments in favour of a single National Backbone Network (NBN), as well as their strategic options, ahead of negotiations with its competitors and the regulator.
Approach
Firstly, we reviewed the market, competition and regulatory environment in Sri Lanka. The current licensing of the NBN in Sri Lanka was unsustainable. Whilst the incumbent had obligations to provide coverage, minimum speed, and open access, a major telecom operator was allowed to compete without such obligations. Secondly, we drew evidence from a number of best practice case studies from around the world to help the operator argue to the telecom regulator that Sri Lanka’s ICT objectives will best be served by having a single NBN licensed exclusively to the operator and governed by a new set of regulatory controls, which the team's telecom expert described. We also considered the arguments the operator could use when approaching its main competitor to seek to persuade them to use the NBN more, rather than their own network. Furthermore, we introduced an outline of some longer-term strategic options for the operator to begin to consider in the case that its main competitor continued to build out its network. Finally, we recommended immediate next steps for the operator. Imperative in these next steps was an urgent programme to improve the operator’s NBN wholesale products and supporting systems and processes.
Results
We successfully presented our findings to the operator's Chief Corporate and Sales Officer and Chief Executive Officer who agreed with the recommendations set in the final report.