of new entrants
initial cost to be incurred when entering the telecommunication industry is
high due to expensive machineries and expensive site sharing expenses where
two service providers share the same telecommunication sites.
addition, TRC has enacted a law from stopping any new service providers from entering
the telecommunication industry. Due to this legal barrier it can be concluded
that barriers to enter the telecommunication industry is high.
power of buyers
Sri Lanka, demand of the customers are not taken in to account when setting
the call charges. The telecommunication charges are mainly determined by the
Telecommunication Regulation Commission Sri Lanka (TRCSL), therefore the
customers cannot impose a pressure on the service providers.
the customers do have the option to switch from one service provider to
another since the switching cost is reallly low in the telecommunication
industry therefore the quality is of high importance in retaining the users.
Dialog has been able to provide customers with high quality service.
is no alternative to mobiles in Sri Lanka, even if it is VOIP over wireless
technology yet internet service is provided by the telecommunication service
line connections are not considered to be a substitutes in Sri Lanka due to
the immobility of such technology. Dialog has even a subsidiary which has
CDMA license in Sri Lanka along with some other operators
power of suppliers
are limitations for setting sites that provide signals. Dialog and other
telecommunication service providers share the towers and they pay and set of
the revenue and expenses against each other.
equipment providers are limited therefore
the power that they have over the price at which tower equipment are
among competing firms
Sri Lanka, mobile operators are in a quality and other service driven
competition where firms are coming up with services to make customers lives
easier. In addition, they come up with loyalty packages. Since price is not
in the hands of mobile operators they often come up with features such as
enabling users to book movie tickers, e channeling, and mobile banking. in
addition, they come up with mobile applications. Dialog AxiataPlC is known
for its innovations in Sri Lanka