Big land bank for successful SLT bidder

The successful bidder for the country's telecommunications firm, Sri Lanka Telecom PLC, will stand to gain a massive land bank in the country, analysts say.

SLT has more than 500 lands (lots) extending to hundreds of acres around the island and worth billions of rupees.

India’s Jio Platforms and China’s Gotune International Investment Holdings are now the pre-qualified bidders for 50.23 per cent of shares owned by the government in Sri Lanka Telecom to a private company.

While the focus has always been on the telecom services and bandwidth the company offers, analysts are highlighting the hidden potential that comes with the acquisition of these lands. Not only do they provide opportunities for further development and expansion, but some of these scenic locations also hold promise for tourism.

The Ministry of Finance, acting on behalf of the government, recently invited potential investors to submit their Request for Qualification (RFQs) for the divestiture of its shares in Sri Lanka Telecom PLC (SLT). The aim is to find a buyer who can optimise the existing infrastructure and effectively utilise the company's resources.

Industry analysts predict that the entry of fresh players into the market will lead to improved customer benefits, especially in terms of broadband and international connectivity. “The future plans and success of these newcomers will depend on the strategic decisions made by the potential owner,” an analyst said.

While it may be premature to make concrete predictions, there is optimism that customer benefits will see a positive impact should SLT come under a new management.

However, some industry insiders have dismissed the hype surrounding the potential acquisition, arguing that the telecom market in Sri Lanka can comfortably support three major players.

“Considering the island's population of 22 million, three telco operators seem suitable,” an industry player said.

“This discussion is overrated. With the new incoming telco, it will still be a threeplayer market. Three is a good number for a 22 million populated island such as Sri Lanka. Even in an over 1 billion population market such as India, there can be two to three operators. It can also be the opposite.”

The presence of multiple operators allows for different offerings, target segments, and brands, catering to the diverse needs of consumers, another player said.

Senior government sources have revealed that global company Hutchinson, with an impressive worth of $45 billion, had previously expressed interest in acquiring Mobitel, SLT's digital arm.

Overall, analysts said that the divestiture of shares in Sri Lanka Telecom PLC opens up new possibilities for the company and the telecom market in Sri Lanka.