Sri Lankan Telcos Deliver Faster Broadband. SLT & Dialog Launch 4G as Etisalat Introduces 3.75G

08th May 2011, www.island.lk

Earlier it was a price war, but now mobile telecommunication companies are racing to deliver faster broadband speeds.

Just one day after Etisalat launched its 3.75 generation broadband network, Sri Lanka Telecom PLC’s (SLT) Mobitel and Dialog Axiata PLC (Dial) announced that they had conducted successful trials on fourth generation (4G) LTE networks, breaking broadband speed records for the first time in South Asia, they both claimed.

Both SLT and Dial both announced last Friday that they had carried out successful trials in 4G technology, which means Etisalat’s 3.75G network would be slightly behind.

While Etisalat is promising speeds up to 21mbps with a capacity to reach 42mbps through its 3.75G network, SLT says its 4G network could deliver up to 96mbps in downlink and 49mbps in uplink using LTE technology.

"Having launched the first Super-3.5G HSPA network in South Asia in December 2007, and subsequently carried out a trial of HSPA+, MIMO (Multiple Input Multiple Output) with downlink speeds of up to 28mbps in 2009, another first in the region, Sri Lanka Telecom Mobitel has broken the speed barrier even further to demonstrate broadband speeds of up to 96mbps in downlink and 49mbps in uplink using LTE technology, and setting another record in the region for the third consecutive time," the telco said in a statement.

Meanwhile, Dial’s pilot network will initially cover several key zones within the city. It said its trials achieved data speeds in excess of 100mbps in indoor demonstration mode, and 40-50mbps in outdoor mobile usage scenarios within the city.

The Telecommunications Regulatory Commission is monitoring these broadband speeds to ensure consumers get value for money and that broadband speeds are within the advertised range.

A recent price-war left many of the telcos bleeding.

Related Info :

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• Sri Lanka's Etisalat Spends $163mn on Expansion and 3G Upgrade

SLT Tops Rs50bn Turnover. First Sri Lankan Group to Reach the Milestone. Rs 5.96bn PBT and Rs3.94bn Profit After Tax

26th March 2011, www.island.lk

Sri Lanka Telecom (SLT) has become the first Sri Lankan group in the country to achieve the milestone of Rs.50 billion turnover having crossed this landmark in 2010, the company’s Chairman Mr. Nimal Welgama has said in the company’s annual report.

"Given the strategic focus we have instituted in all our areas of business and the emphasis we have constantly infused in ensuring that our end objectives and trades are met or exceeded, it is indeed noteworthy that we have posted a profit of Rs.3.9 billion and turned the company around to be a sustainable, profit making going concern," he said.

The year ended December 31, 2010 saw SLT posting group revenue of Rs.50.25 billion, up from Rs.48.1 billion a year earlier while company revenue at Rs.33.3 billion was down marginally from Rs.34.1 billion posted a year earlier.

Group profit after-tax at Rs.3.94 billion was up from the previous year’s Rs.778 million while at company level, SLT posted a profit of Rs.2.48 billion, up from Rs.1.23 billion the previous year.

Welgama said that SLT was now "Future Ready", having rolled out its national backbone based on Multi-Protocol Label Switching technology in readiness for next generation network services and standards.

With Mobitel, its wholly owned subsidiary, covering the mobile segment, the group had over 85% market share in fixed and mobile broadband areas.

"In addition to being prudently diversified, we are ready to take on the complex challenges of an economy that has long harbored the vision of becoming an ICT hub," he said.

"While physical infrastructure is being established, connectivity remains the key to holistic development."

Despite SLT being one of the biggest market capitalized companies in the country, the free float of its share remains below 3% - with 54 million shares owned by about 15,000 investors.

The Sri Lanka Government and connected parties and Global Telecommunication Holdings NV of the Netherlands, a partner of Malaysia’s Maxis group, hold more than 97% of the issued share capital of the company.

The Secretary to the Treasury with 49.5% of SLT is the biggest shareholder followed by Global Telecommunication Holdings (44.98%), EPF (1.05%) and the Life Fund of the SLIC (0.98%). Other major government shareholders of SLT included NSB (0.73%), Ceybank Unit Trust (0.49%), ETF (0.18%) and the General Fund of the SLIC (0.18%).

SLT has a stated capital of Rs.18.05 billion, total group assets of Rs.87 billion and group liabilities of Rs.37.18 billion.

The SLT Board has recommended a first and final dividend of Rs.0.60 per share which will absorb Rs.1.08 billion. The payment is subject to approval by shareholders at an AGM to be held on March 28.

The directors of the company are: Messrs. Nimal Welgama (Chairman), Sandip Das, Chan Chee Beng, Jeffrey Jay Blatt, Jayantha Dharmadasa, Shaamendr Rajapaksa, Kalinga Indatissa, Lawrence Paratz and Dayananda Widanagamachchi.

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Sri Lanka Goes 4G with WiMax Offered by Skymax and SLT

12th January 2011, www.dailynews.lk, By Ramani Kangaraarachchi

Plans are underway for businesses and residents to experience the wonders of 4G technology with the launch of Skymax which is the first WiMAX 16e broadband service in Sri Lanka under the Sky Network Private Ltd.

This was revealed at a press conference at Cinnamon Lakeside Hotel Colombo yesterday.

Sky Network CEO Mahinda B Herath said the vision of the company is to give each and every person in Sri Lanka the freedom to access high speed broadband connectivity and digital content, anywhere in the island at anytime.

It has already earmarked several areas for Skymax technology and Herath hoped to strive to maintain the best possible price-performance ratio.

He said that the WiMAX 16e broadband service of Sky Network will offer a superior broadband experience for the household customer, while the SME and corporate sector could enjoy a broadband service with certified information rates. The offering will incorporate other value added features soon.

Sky Network Private Limited, a BOI approved company belonging to the Sri Lanka Telecom Group, is marketed under the brand name Skymax inspired by Sky Network the provider of the technology.

Image: SLT CEO Greg Young congratulating Sky Network CEO Mahinda B Herath after launching the new service. Picture by Ruwan de Silva

A Single State Agency, Sri Lanka Tourism (SLT), to be Set up to Imporove Efficiency

12th December 2010, www.sundaytimes.lk

Bids for 10 islands at Kalpitiya as tourist resorts are being evaluated, a weekly meeting brings all state agencies together to speed up tourism-related project approvals and major changes soon to the Tourism Act 2005 to revert back to a single state tourism agency are gradually putting Sri Lanka back on the global travel map.

“We are bringing the three institutions (dealing with development, marketing and conference promotion) under one authority to improve efficiencies,” said Dr Nalaka Godahewa, Chairman Sri Lanka Tourism.

“Seeking more money to develop the product is not the main reason,” he told the Business Times.

The 2005 Act which was only implemented in 2007 distributes the tourist levy paid by the industry into four different segments with marketing getting the bulk of the money.

However with an urgent need now to develop infrastructure and product development, authorities decided to amend the Act.

“However not having the money was not the main purpose for the changes,” Dr Godahewa noted, adding; “The Act has to change to ensure better efficiency.

In the past three years there has been no benefit in having four separate agencies (including the hotel school) as they are going in different directions with no cohesive strategy. We need one goal; one objective.”

The proposed changes in the Act will focus on five areas - investment and promotion; classification and regulation; marketing; research & planning; and development. The proposed amending legislation is before the Legal Draftsman. While the authorities are pushing ahead with raising the number of rooms to 50,000-60,000 by 2016 when the target of 2.6 million tourists must be met, efforts have been successful in speeding up approvals and reducing the time spent on this to a couple of weeks from around a year earlier.

“The biggest problem investors had was getting quick approvals (through the Board of Investment and other agencies). We have set up a one-stop shop where we meet once a week and clear approvals. Now a common application is given compared to several earlier,” he said.

In the meantime bids for 10 Kalpitiya islands closed on December 3 and the technical committee evaluation has begun. The Tourism chief said bids include those from 2-3 major investors backed by international brands. The islands range from 100 acres to 800 acres with a local population. “There would be 40 different products – whaling, domestic airport, marina (to transport from one island to other), helipad, etc,” Dr Godahewa said adding that negotiations are underway over the possibility of increasing the lease period from the proposed 30 years now.

“Investors are putting big money --- $200-250 million - and need longer terms,” he said.

Asked for comments on changing the Tourism Act, which the industry backed to the hilt in 2005-07, Jetwing Group chairman and tourism specialist Hiran Cooray said it was a good idea to develop the product at this point of time. “Yes, there is more money needed for development and under the current provisions that is not possible. Thus a change is justified.”

Sri Lanka Telecom to Raise $125mn to Fund Expansion

04th October 2010, www.lankabusinessonline.com

Sri Lanka Telecom, the island's largest fixed access operator, may raise 125 million US dollars from bonds to fund expansion if the terms are right, as business conditions in the island improve, an official said.

"We want to raise 125 million US dollars," SLT's chief financial officer Shiron Gooneratne said.

"We have got several good proposals from investment banks in response to a request for proposals. But the board (of directors) is also looking at other options."

SLT is majority owned by the Sri Lanka government but its largest outside shareholder is Malaysia's UT group, which has appointed the chief executive.

Fitch Ratings which raised the outlook on SLT's 'B+' foreign currency rating to 'positive' from 'stable' last month - along with a lifting of the outlook on Sri Lanka's sovereign rating - said the firm had "strong access" to bank loans.

SLT has a 'AAA (lka)' national rating. Sri Lanka's government last week raised one billion US dollars from a 10-year bond at 6.25 percent.

Standard and Poor's also raised Sri Lanka's rating by one notch to 'B+' on better prospects after the end of a war and expectations that a deal with the International Monetary Fund will keep excessive state spending in check.

Sri Lanka's rupee interest rates are low by historical standards with the prime rupee lending rate around 9.9 percent on October 01 against 21.1 percent two years ago, according to central bank data.

Sri Lanka's commercial banks are liquid and looking for good projects to lend. Loans to private business are now starting to grow faster after slumping for most of 2010.

With the end of a 30-year war the SLT is looking to increase capital expenditure, Gooneratne said.

"We are investing in the North and the East," Gooneratne said. "We recently extended our fibre optic network to Jaffna. The general business conditions are improving."

Fitch said better economic conditions after the end of the war and a price floor imposed by the telecom regulator to end a price war (which started in the mobile sector) is expected to stem a fall in SLT's margins.

Sri Lanka's wireline business shrank in 2009 as subscribers shifted to mobile use. But during the second quarter of 2010 wireline has started to grow again and fixed access wireless - where SLT is also active - grew at 3.8 percent.

SLT also owns Mobitel, a celco. Sri Lanka's mobile users grew 25 percent in the second quarter from a year earlier, according to official data.

SLT WiMax to Cover Sri Lanka, Island-Wide Coverage in Four Phases

20th November 2009, www.dailymirror.lk

A subsidiary of Sri Lanka Telecom (SLT) aims to attract US$12.8 million to provide broadband internet facilities using the latest Wimax technology with islandwide coverage.

In this respect, the Board of Investment of Sri Lanka granted investment approval for Sky Network to provide latest Wimax – wireless broadband services.

Sky Network is an investment of US $ 12.8 million for the first two phases. The venture will provide broadband internet facilities using the latest Wimax technology Wimax 802.16e. The company expects to provide coverage to the entire island in four implementation phases.

CEO Mahinda Herath stated that the company is the first to provide Wimax 802.16e services in Sri Lanka.

Sky Network is a subsidiary of SLT, with SLT being the major shareholder of the company. The venture is a complementary business to SLT. Sky Network will be providing the Wimax services to parts of the country where ADSL services are not offered by SLT. The venture will commence operations in March 2010 and will provide services to Colombo, Gampaha and Kalutara Districts in Phase 1. Herath stated that the venture expects to have a customer base of 11000 Wimax customers under Phase 1.

BOI Chairman/Director General Dhammika Perera signed the agreement on behalf of the BOI and formally presented the BOI Certificate of Registration to SLT Chairperson Leisha De Silva Chandrasena.