By: Staff Writer
April 21, Colombo (LNW): Sri Lanka’s latest telecom reform is being promoted as a lifeline for rural communities and schoolchildren but whether it truly delivers inclusive benefits remains an open question.
By scrapping taxes on new telecom towers and offering substantial subsidies, the government hopes to fast-track nationwide connectivity under its “Communication to the Village” initiative. The ambition is sweeping: near-total 4G and 5G coverage by the end of 2026.
At the heart of the policy is a financial incentive structure that strongly favors telecom expansion. Companies like Dialog Axiata, SLT-Mobitel, and Hutch can recover up to 75 percent of tower construction costs, capped at Rs. 35 million per site.
Combined with a five-year tax holiday, this dramatically lowers the risk of investing in low-income or sparsely populated areas.
For rural students, the potential upside is significant. Improved network coverage can enable access to online classrooms, digital libraries, and educational platforms that were previously out of reach.
The government has also encouraged telecom providers to introduce discounted data packages specifically for students, alongside cost-oriented tariffs aimed at keeping internet expenses below 0.6 percent of average income.
Early signs suggest some progress. Increased investment has already boosted 5G infrastructure, with hundreds of sites established nationwide. Faster internet speeds reportedly rising by over 30 percent on some networks could enhance the quality of remote learning and digital communication. Additionally, the expansion of infrastructure supports broader economic activity, from agricultural technology to small-scale e-commerce, indirectly benefiting families and students alike.
However the critical issue is whether these gains will be equitably distributed. Infrastructure alone does not guarantee access.
Many rural households still lack affordable smartphones or digital literacy skills needed to fully utilize high-speed internet. Without targeted support such as device subsidies or community training programs the benefits may remain concentrated among those already better positioned to take advantage of them.
There is also skepticism about pricing. While telecom operators have introduced new data plans, the long-term sustainability of low-cost offerings is uncertain.
Companies may initially reduce prices to align with government expectations but could adjust tariffs once market conditions stabilize. Regulatory oversight will be crucial to ensure that affordability commitments are maintained.
Another concern is the reliance on private sector delivery. By channeling public funds into corporate-led infrastructure, the government is effectively betting that market incentives will align with social goals.
This approach can be efficient, but it also carries risks if profit considerations outweigh public interest.
In essence, the success of this initiative depends not just on building towers, but on building access. If complemented by policies that address affordability, device access, and digital skills, the reform could reshape educational opportunities for rural students.
Without those safeguards, it may fall short of its promise leaving the digital divide narrower, but far from closed.
