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Discusses Sri Lanka’s deregulation of its telecommunication sector and how its government opened doors for private sector participation. Uses 7 Tables to aid in further explanation of how conditions were in helping the private sector operators, foreign investment, cellular mobile telephone operators, fixed access network operators and the interconnections of networks. Concludes Sri Lanka’s telecoms network needs major upgrading and development, but even so Sri Lanka is well on its way to being the Asia‐Pacific’s more progressive market member.

Contends the best strategy for facing up to the growing demand for services in mobile communications is to learn from the experience of other countries around the globe. Addresses the key role of regulation, formulating policy framework, overcoming incumbents’ resistance and public scrutiny. Summarizes that the mobile communications sector is the fastest growing area within telecommunications.

Looks at the current market environments of Telstra and PCCW, and analyses the issues and concerns raised by the announcement of this strange marriage. Concludes the main attraction for both parties is the hug untapped telecommunications market in China and other Asian countries.