TRC of Sri Lanka to Allow Spectrum sharing & Domestic Roaming for Lower Broadband Tariffs

28th March 2013, www.lankabusinessonline.com

Sri Lanka is allowing spectrum sharing and domestic roaming to promote shared resources and cut costs so that broadband tariffs can be kept low, the telecom regulator said.

"We are allowing spectrum sharing," director general of the telecommunications regulatory commission of Sri Lanka (TRCSL) Anusha Pelpita said.

"We will not regulate their tariffs but they will have to apply to us. This will help keep costs down and subscribers will get lower tariffs."

Domestic roaming has already been recently permitted and Airtel and Etisalat have started to allow customers to roam on each others' network, he said.

Dialog on Thursday paid 3.2 billion rupees for a 10MegaHertz paired frequencies block in the 1800MHz band paying 2.0 billion rupees higher than the next bidder, in an auction which had a floor price of 3.2 billion rupees.

Pelpita said the frequencies are expected to be used in the rollout of fourth generation LTE (long term evolution) high speed mobile broadband services.

The 1800 spectrum was allocated for GSM (2G) services by the International Telecommunications Unions, but can be used for 4G.

The 75MHz of paired bandwidth in the frequency band (or 150MHz in the band which runs from 1700 through 1800 MHz has now been allocated to operators.

Dialog Already had a 15MHz block, Mobitel had 20, Etisalat, Hutch and Airtel each had 7.5MHz each and another 7.5MHz allocated to a firm which did not have a network was in court.

Except for the 7.5MHz which was in dispute the entire band has now been allocated to operators, he said.

"Spectrum sharing will allow more efficient use of the resource," Pelpita said.

Operators can set their own prices, but those planning to share spectrum must first apply to the Telecom Regulatory Commission, he said.

In Sri Lanka the 900MHz band, which is used for mobile broadband elsewhere is occupied by television broadcasters, but the band may become free after digital broadcasting starts Pelpita said.

Unlike other countries which raised billions of dollars Sri Lanka has a policy of keeping frequency fees relatively low.

Pelpita said he wanted to promote broadband use and in Sri Lanka fixed broadband penetration was low, though mobile was picking up.

"We have allowed frequency sharing because that will also keep costs down, so that retail tariffs will be more affordable," he said.

"Domestic roaming will also reduce costs as operators can save on network expenditure."

Sri Lanka Telecom, which had been licensed to build the national telecom backbone, has to allow other operators to use the pipes on regulated tariffs.

Related Info :

• Colombo Lotus Tower Ground Preparation Starts. Nelum Kuluna to be South Asia's Tallest Tower

• Telcos Invest $300mn in Sri Lanka as TRC Aims to Up Last Year's Rs120bn Revenue

• Sri Lanka Dialog Invests $150mn on Fibre & Broadband Network Expansion

• Sri Lanka Telco Mobitel Invests $60mn on LTE, the Latest Standard in Mobile Network Technology

Sri Lanka Mobile Boom Overtakes TV & Radio

2nd January 2012, www.lankabusinessonline.com

Household access to telephones is on par with electricity, television, and radio in Sri Lanka mainly because of the boom in mobile phones, and are set to overtake TV and radio, a new study said.

Access to household phones is greater than to transport in the island, the study of Asian countries by the LIRNEasia think tank said.

SMS (short message service) use, gaming and balance checking has decreased but camera and radio use increased in Sri Lanka from 2008 to 2011, said the study on use of information communications technology, mostly phones, among poor people in emerging Asian economies.

It covered Bangladesh, Pakistan , India, Sri Lanka, Indonesia (Java), Philippines and Thailand.

Access to phones is improving on both personal and household levels, mostly of mobiles with a decline in fixed and public phones, the study said.


And phones are set to overtake TV and radio, it said.

It found that phone use in rural Sri Lanka is on par with urban areas.

The main perceived benefits of phone access in Sri Lanka are emergency communication, maintaining relations and saving on travel.

"The key economic benefit of phones is reducing travel," it said, noting that there was little use of mobiles for productive purposes.

About 71 percent of poor consumers, in a segment known as BOP or bottom-of-the-pyramid, own a mobile with many on a second handset, the study found.

"Multiple-SIM ownership is high in the north and east. The main reason is because of lower call rates.

Cheaper 'on-net' or the same network calls were the main reason for multiple ownership of SIMs or subscriber identity modules used to identify and authenticate subscribers.

Related Info :

• Sri Lanka Telephone Density Reaches 100.8 Lines per 100 Persons in 2010 as Fixed & Mobile Connections Overtake Population

Sri Lanka Dialog Makes Rs1.2bn Net Profit in March 2011 Quarter with Subscriber Growth

12th May 2011, www.lankabusinessonline.com

Sri Lankan mobile phone operator Dialog Axiata group said March 2011 net profit rose 64 percent to 1.2 billion rupees from a year ago with subscribers growing and lower losses from TV and broadband units.

The profit was slightly lower than the 1.3 billion rupee net profit made in the December 2010 quarter.

Dialog said in a stock exchange filing group sales for the March 2011 quarter rose 10 percent to 10.9 billion rupees from the previous year.

Basic earnings per share for the quarter rose to 14 cents from eight cents.

Dialog Axiata's cellular business operating profit fell to 869 million rupees from 1.4 billion rupees the previous year.

The group's television business reduced operating losses to 28 million rupees from 126 million rupees while its fixed telecommunication service loss fell to 204 million rupees from 294 million rupees.

The group's telecommunication infrastructure operations mad a 101 million rupees operating profit during the March 2011 quarter compared with a loss of 76 million rupees the year before.

Operating profit from the group's international operations rose to 386 million rupees from 49 million rupees.

"Group profitability was founded on a healthy momentum in EBITDA growth of seven percent, founded on the positive outcomes of strategic cost rescaling in combine with revenue gains," a company statement said.

"Judicious balance sheet restructuring initiatives featuring the achievement of a lower cost debt profile has underpinned the translation of EBITDA performance to commensurate growth in net profit at group, company and subsidiary levels."

Dialog said growth in mobile revenues was driven by a "healthy growth" in mobile subscribers to more than 07 million in the March 2011 quarter and the "increased adoption of mobile broadband services."

Company revenues were further bolstered through interconnection revenues of 0.4 billion rupees accruing since the implementation of the interconnection regime in June 2010.

However, Dialog said that notwithstanding a 10 percent growth in revenues, EBITDA at company level contracted by two percent to 3.3 billion rupees in the March 2011 quarter from a year ago.

"The company’s operating costs (excluding depreciation) grew by 17 percent compared to the first quarter of 2010," the statement said.

"International origination costs and domestic interconnection charges grew in tandem with the growth in corresponding revenue lines and formed a significant contributor (65 percent) to year-on-year cost expansion."

Dialog's network costs increased by 18 percent in tandem with the "aggressive expansion" of the company’s network infrastructure footprint and price hikes with respect to key inputs including electricity and fuel, the statement said.

The performance of the Dialog Television and Dialog Broadband Networks units continues to improve, the company said.

DTV revenue rose 15 percent to 561 million rupees in the March 2011 quarter from a year ago with its pay television business adding 13,000 new customers to reach a subscriber base of over 181,000 as at 31 March 2011.

"DBN continued to consolidate the performance trends of the previous quarters to record its fourth successive quarter of positive EBITDA in Q1 2011," the statement said.

"EBITDA turnaround at DBN was underpinned by substantial reductions in operating and direct costs accruing from cost rescaling programmes implemented over the past quarters."

DBN remained in the red in the wake of accelerated depreciation of its CDMA and WiMAX networks.

"The group continued to record positive Free Cash Flows (FCF) for the fifth consecutive quarter, with Q1 2011 FCF being recorded at 1.1 billion rupees," the Dialog statement said.

Dialog also said recently launched its 4th Generation LTE pilot network in Colombo to prepare its network capability for the next generation in high speed broadband services.

"The pilot network will initially cover several key zones within the city and is billed to be the first exposition of a 4th Generation LTE network in the South Asian region.

"The pilot network has demonstrated the delivery of over 100 Mbps in indoor demonstration mode and 40–50Mbps under outdoor mobile conditions."

Related Info :

• Sri Lanka Dialog Invests $150mn on Fibre & Broadband Network Expansion

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

• Dialog Axiata & India's FirstSource Solutions in a BPO Joint Venture to Propel Dialog Business Services Pvt Ltd

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 :

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

• Sri Lanka Dialog Invests $150mn on Fibre & Broadband Network Expansion

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

TATA Communications Launches 2nd International Gatewayat in Sri Lanka at Orion City in Colombo

01st May 2011, www.thebottomline.lk

Telecommunication service provider, TATA Communications Lanka Ltd last week inaugurated its second International Gateway in Sri Lanka at the emerging IT Park, Orion City in Colombo.

Strengthening its seven-year presence in the country, the new facility will further strengthen the reliability and stability of its services to both operators and enterprise customers. The second International Gateway is a part of a strategy to offer cutting-edge IP-leveraged solutions enabled by the company’s superior global infrastructure and leadership in emerging markets.

“In the last seven years, we have grown substantially, thanks to our customers and their trust in us. We thought it fit to have greater redundancy for the existing primary POP in Taj Samudra and to provide an independent back-haul, for extending reliable and stable services,” explained V. Ravi Sankar, CEO, TATA Communications Lanka regarding the objective of the new venture.

“This will enable our customers to offer higher uptime and better service levels to their end customers, thereby becoming more competitive in the international business environment.”
Acknowledging the support of the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) and Board of Investment (BOI), Ravi Sankar said that both these organisations, under the respective leadership of Anusha Palpita and J. D. Bandaranayake, have been forward-looking and helpful.

Enterprise solutions, as well as wholesale voice solutions and carrier services, which are currently routed through the primary POP, shall be offered from the new gateway.

Hereafter, some of these services would be routed partially or completely through the new POP, if required, as a redundant measure. With the new gateway facility operating at Orion City, resident customers operating from the IT Park will be able to receive services at a competitive price; additionally, order fulfillment will be faster. “Because we are bringing our services to the doorstep of the customer, the local charges will be less,” Ravi Sankar added.

“The second POP not only strengthens stability, but also improves the reliability of the services offered to operators and enterprises, so that they receive an enhanced service experience,” said S. K. Gupta, Chairman, TATA Communications Lanka. “Through a very reliable network that connects customers globally, our customers can be confident, and the country at large will benefit,” he added. With the first phase of the venture underway, the total investment proposed is LKR 70 million.

The new gateway was inaugurated by the High Commissioner of India to Sri Lanka, Ashok K. Kantha, in the presence of distinguished guests and delegates. Anusha Palpita, Director General, TRCSL, made the first IDD call through the new International Gateway to Vinod Kumar, Group CEO and Managing Director of TATA Communications Ltd.

TATA Communications Lanka Ltd is a subsidiary of TATA Communications Limited, a TATA Group company and one of the largest telecommunications service providers in the world. Providing services to customers in Sri Lanka, TATA Communications Lanka has unrestricted access to the global network and infrastructure of TATA Communications Limited.

Related Info :

• Tata Communications Bid for Sri Lanka's Suntel, a Telco Running Fixed Access Wireless Network

Sri Lanka Telco Mobitel Invests $60mn on LTE, the Latest Standard in Mobile Network Technology

01st May 2011, www.thebottomline.lk

Sri Lanka Telecom Mobitel, the National Mobile Telecom Service Provider, announced on Friday that it has signed a BOI agreement to trial and deploy a LTE (Long Term Evolution) Network for the first time in Sri Lanka.

This will be part of the company’s network expansion project and will enable Mobitel to import/purchase (locally) project-related items free of customs duty.

Mobitel has committed an investment of approximately US$ 60m in its latest network expansion, adding 1000 LTE capable radio base stations to the existing network infrastructure.

With this, the company’s investments committed to date in its LTE/3.5G/2.5G networks and service offerings amount to over US$ 400m.

“Technology change is a key determinant of a country’s economic growth and therefore, the introduction of LTE Network is expected to drive growth in the telecommunication sector as well as improve competitiveness and growth in several other economic sectors heavily depended on infocom” said, Jayampathi Bandaranayake, Chairman BOI of Sri Lanka. “We are happy to support Sri Lanka Telecom Mobitel in its endeavour to provide the latest ICT technologies which is sure to catalyze national development”.

LTE is the latest standard in the mobile network technology evolution after GSM/EDGE and 3.5G/HSPA network technologies, and Mobitel is gearing towards demonstrating broadband speeds nearing 100Mbps in downlink and 50Mbps in uplink, using this LTE technology when the spectrum is available.

Anusha Palpita, the Director General of Telecommunications said “TRCSL is committed to assist all the telecommunication operators in Sri Lanka to develop world-class telecommunication network facilities in the country. The spectrum allocation for the commercial operation of LTE will soon be finalised where the operators will be able to launch nationwide enhanced ICT infrastructure to benefit all businesses and consumers in Sri Lanka through this latest evolution in mobile broadband technology.”

Nimal Welgama, Chairman Sri Lanka Telecom Mobitel said, “Harnessing the power of ICT to its fullest potential will be the key in realising hyper exponential pace of growth which is needed to build our nation and to do so rapidly. This requires next generation ICT available and affordable to the citizens of our country which will help eventually realise the President’s vision of elevating the e-literacy rate in Sri Lanka. In this regard, this investment on the latest LTE infrastructure will be a significant step towards driving unparalleled growth to propel our country forward.”

ZTE corporation of China was selected by Mobitel as its technology partner to deploy this state-of-the-art LTE ready Next-Generation-Network.

Related Info :

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

• Telcos Invest $300mn in Sri Lanka as TRC Aims to Up Last Year's Rs120bn Revenue

• Second Phase of mTicketing Launched by Sri Lanka Railways & Mobitel. Subscribers Dial 365 to Access Ticketing Portal

Sri Lanka Telephone Density Reaches 100.8 Lines per 100 Persons in 2010 as Fixed & Mobile Connections Overtake Population

20th April 2011, www.lankabusinessonline.com

Sri Lanka's telephone density rose to 100.8 lines per 100 persons in 2010 showing that fixed and mobile connections had overtaken the population, in a telling demonstration of the results of ending a state monopoly.



Telephone density rose from 86.6 in 2009 in a country with a population of 20.6 million, according to data published by Sri Lanka's central bank.

Mobile phone users grew 20.9 percent to 17.2 million while fixed access wireline which has slumped in 2009 recovered to grow 2.9 percent to 897,000.

Industry analysts say owners of more than one mobile subscriber identity module (SIM) is growing.

Wireless fixed access phones grew 4.3 percent to 2,674,000.

Sri Lanka's telekom market was a state monopoly until the mid 1990s when a privatization and liberalization drive was launched. Sri Lanka Telekom, a state fixed wireless operator was sold to Japan's NTT and two wireless operators were licensed.

At the same time arbitrary pricing was replaced by a regulated tariff re-balancing plan where local calls were raised progressively to allow the fixed operator to deal with lower termination revenue in a global environment of de-regulation.

Prices have since stabilized and have even fallen in some areas in real terms.
Mobile services, which originated as a private business with Millicom International Cellular starting South Asia's first mobile network saw competition, when Australia's Telia started a joint venture with the incumbent fixed operator.

Sri Lanka now has five mobile firms, in a fiercely competitive market.

Another recent growth sector has been broadband both in mobile and wireline. A key reason for the expansion in the wireline sector has been broadband data.

Data showed that internet connections including mobile broadband had grown 79.2 percent to 430,000 in 2010.

Meanwhile payphones in service fell 4.4 percent to 7,054.

The data also showed that mail use has declined. Letters per inhabitant had fallen to 17 from 20 a year earlier.

Related Info :

• Sri Lanka Mobile & Wireline Users Grew by 24pct in Q3 2010

Sri Lanka Dialog Invests $150mn on Fibre & Broadband Network Expansion

11th February 2011, uk.reuters.com, By Shihar Aneez and Ranga Sirilal, Editing by Bryson Hull

Sri Lanka's top mobile operator Dialog Axiata DIAL.CM on Friday signed a $150 million investment agreement mainly to fund a fibre upgrade and broadband network expansion, the company said.

Dialog, a unit of Malaysia's Axiata (AXIA.KL), said the investment will help boost the island nation's information and communication technology sector, which Sri Lanka's government has targeted to help fuel rapid economic growth.

"Dialog entered into an agreement with the Board of Investment of Sri Lanka (BOI) to invest a further $150 million towards the advancement and expansion of ICT infrastructure in Sri Lanka," it said in a statement.

The company has brought $1 billion in foreign direct investment since its inception in 1994, Dialog said. It was listed on the Colombo Stock Exchange in 2007.

On Monday, Dialog posted a 1.28 billion rupees net profit in the December quarter compared to a 2.23 billion loss a year ago. [ID:nSGE71A01J]. The company later announced 0.20 rupees per share first and final dividend.

Related Info :
• Telcos Invest $300mn in Sri Lanka as TRC Aims to Up Last Year's Rs120bn Revenue

• Sri Lanka Mobile E-Commerce Service Wins World Summit Award. Dialog Tradenet Text/Voice Price Information Service Empowers Small Farmers

• Dialog Posts Net Profit of Rs 1.69bn for 3rd Quarter of 2010

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

Construction to Start on 350metre $103mn Lotus Tower in February. Seven Level Colombo TV Tower Project by TRCSL

05th January 2011, www.dailynews.lk, Sanjeevi Jayasuriya

The final Bill Of Quantities (BOQ) of the proposed Colombo TV tower project is now being finalized.

The Telecommunication Regulatory Commission of Sri Lanka (TRCSL) expects to start construction work of the tower next month.

The 350-metre tower in Peliyagoda will be constructed with an investment of US $ 103 million. This Lotus Tower will be the latest in the country with seven levels, TRCSL Director General Anusha Palpita told Daily News Business.

The tower is scheduled to be completed within 30 months and will be managed by a public company owned by the TRCSL.

Its shares will be issued to the public once the construction process is completed.

The country has sufficient TV and radio stations to match the frequencies available and we are in the process of re-aligning the radio frequencies to provide a better service to customers. A committee is appointed to study the situation, as at present there are more stations than the country can afford.

“A specialized team of engineers is working on this matter to provide a solution,” he said.

Though there is no room for another mobile service provider the TRCSL will take measures to introduce a player to the market in the event the present mobile industrialists fail to increase broadband penetration in the country.

The TRCSL’s aim is to increase penetration in urban and rural areas, as there is low penetration currently.

The TRCSL is concerned about the broadband speed provided by operators and to ascertain the speed subscribers will have the opportunity of speed testing utility from their own network shortly.

It is in the process of carrying out the initial work on the formulation of a national policy on broadband to enable an effective service, Palpita said.

Sri Lanka Mobile E-Commerce Service Wins World Summit Award. Dialog Tradenet Text/Voice Price Information Service Empowers Small Farmers

10th December 2010, www.lankabusinessonline.com

Dialog Axiata, Sri Lankan's largest mobile firm, said a service which provides a virtual marketplace and delivers prices from key produce markets in the island has won a global award for mobile commerce.

'Dialog Tradenet' uses mobile text, voice and internet to deliver price information which is useful especially for small farmers who need timely price information to make decisions.

The "World Summit Award Mobile' is an initiative of the United Nations World Summit on the Information Society (WSIS), in collaboration with UNESCO, UNIDO and the United National Global Alliance for ICT and Development.

"Dialog is passionate about leveraging the power of the mobile phone to bridge economic divides, and disparity with respect to the access to opportunity," Hans Wijayasuriya group chief executive of Dialog Axiata said in a statement.

"Tradenet seeks to attack information asymmetry with respect to the trading of goods and services across geographies and multiple layers of the socio-economic pyramid."

The service won gold at for 'mobile-Inclusion and empowerment' at the World Summit Award Mobile. It can be accessed at www.tradenet.lk or by dialing 977 from a Dialog Axiata phone.

Sri Lanka's state ICT Agency has nominated the service to the UN awards. Sri Lanka's government is pushing information technology and broadband use especially to rural areas.

"As a government, we are thoroughly committed to making ICT an important part of our development story, and we will relentlessly support its growth and exploitation," secretary to Sri Lanka's president Lalith Weeratunga said.

Sri Lanka's telecom regulator Anusha Pelpita says Tradnet is a good example a local innovation in mobile and internet technologies helping buyers and sellers in an affordable manner.

The platform was developed Microimage, a Colombo based software firm.

Produce prices for the service come from wholesale markets in the siald through Govi Gnaana Seva, which captures and makes available data to farmers.

"With Dialog tradenet, Govi Gnaana Seva (GGS) found the perfect platform to provide rural farmers with their most critical information need; produce prices," GGS director Harsha de Silva said.

"The fact that farmers are now using this price information in their decision-making to improve their living standards is a huge success of the tradenet-GGS partnership."

Bharti Airtel Unveils Its New Global Identity in Sri Lanka. First Indian Brand to Go Truly Global

29th Novmber 2010, www.dailymirror.lk

Bharti airtel Lanka, a subsidiary of Bharti airtel, a leading global telecommunications company with operations in 19 countries across Asia and Africa, today unveiled its new global identity in Sri Lanka, following the successful international campaign that commenced in India recently.

The youthful expression of airtel's new identity provides refreshing vitality to global audiences across 2 continents and over 200 million customers. In Sri Lanka, by re-inventing itself in line with the international brand, airtel continues to pioneer quality and reliability of service, breakthrough innovations and unparalleled affordability. Today airtel has emerged as Sri Lanka's fastest growing mobile service provider, delivering an islandwide network in less than 2 years since launch.

Sunil Bharti Mittal, Chairman and Managing Director, Bharti airtel, said "As we race to meet the emerging needs of customers, the unification of our new brand identity across Asia and Africa will enable us to optimize the benefits of a shared worldwide network. Additionally, the new brand identity also gives us the opportunity to present a single, powerful and unified face to our customers, stakeholders and partners around the world.

I believe that this combined scale of efficiencies will support our goal of bringing customers closer to what they truly love in terms of access, device or content".

Amali Nanayakkara, CEO & MD, Bharti airtel Lanka, said "Beyond its positioning as the fastest expanding network in the country, the new international stature of airtel provides unique opportunity to experience a truly global network in Sri Lanka. Coupled together with an unmatchable combination of dynamism, youthful vigour and a pioneering spirit that has already captured the imagination of millions world over, airtel is poised to win the hearts of all Sri Lankans and contribute to its vibrant journey of emerging as one of the most admired brands of the continent".

The new face of airtel is youthful, international, inclusive and dynamic - representing the journey of the first Indian brand to go truly global. The new identity underlines airtel's willingness to embrace everything that is new. The red colour, which is an integral part of the brand, continues to represent the energy and dynamism that has made airtel the success it is today. The new curved addition to the logo is a symbol which will help ensure instant recognition across diverse international markets.

The airtel signature tune has also been refreshed by A R Rahman making it youthful and dynamic in line with the new visual identity. Like the earlier tune, which has made history as world's most downloaded mobile music with over 150 million downloads, the maestro has once again delivered a master piece. The new tune retains the essence of the original but uses an inspiring musical style, with a universal appeal, that will be loved by listeners the world over.

Bharti airtel Limited is a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice & data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national & international long distance services to carriers. Bharti airtel has been ranked among the six best performing technology companies in the world by BusinessWeek. Bharti airtel had 200 million customers across its operations.

Bharti Airtel Lanka (Pvt) Ltd commenced commercial operations of services on January 12, 2009, and now has an aggregate of over 1 million customers. Granted a license in 2007, in accordance with the Sri Lanka Telecommunications Act No. 25 of 1991, it is also a registered company under the Board of Investment in Sri Lanka. Under the license, the company provides digital mobile services to Sri Lanka inclusive of voice telephony, voice mail, data services and GSM based services. All of these services are provided under the Airtel brand.

Sri Lanka Mobile & Wireline Users Grew by 24pct in Q3 2010

29th November 2010, www.lbo.lk

Sri Lanka's mobile subscribers grew 24.3 percent in the third quarter of 2010 from a year earlier, while fixed access sector grew at a much slower 3.4 percent, official data show. During the past 12 months 3.2 million mobile users have been added according to data released by the Central Bank bringing the total to 16.62 million.

Sri Lanka only has a population of 20 million people, but with five operators competing in the market some people now own multiple subscriber indentify modules (SIM).

By owning multiple SIMs, cost conscious subscribers can get the benefits of different packages.

The government recently said it will limit SIM ownership to five per person, though the exact logic behind the move is not clear.

Wireline users grew by 19,917 to 889,077 in the third quarter, from a year earlier.

Internet and wireless subscribers grew by a steep 50 percent to 360,000 adding 120,000 new subscribers.

Sri Lanka Telecom, the island's only wireline operator said said earlier its broadband users topped 200,000 in the third quarter.

Fixed wireless users grew 3.8 percent (98,177) to 2.65 million.

Related Info:
Sri Lanka Mobile Users Grow by 25.4pct to 15.86mn While Wireline Use Go Down

Sri Lanka Mobile Use Grows 30pct in 1st Quarter

Double-Digit Mobile Growth in South Asia : World Bank

Dialog Posts Net Profit of Rs 1.69bn for 3rd Quarter of 2010

28th October 2010, www.dailynews.lk

Dialog Axiata PLC announced financial results for the nine months ended September 30, 2010.

Financial results included those of Dialog Axiata PLC and of the Dialog Axiata Group post consolidation with subsidiaries Dialog Broadband Networks and Dialog Television.

The Group posted a robust net profit after tax (NPAT) of Rs 1.69 billion for the third quarter of 2010 taking YTD 2010 NPAT for the first nine months to Rs 3.77 billion, a 138 percent increase YoY.

Group profit was underpinned by robust performance at Company level, with Dialog Axiata PLC featuring the Group's mobile business, posting a Q3 and nine months profit of Rs 1.90 billion and Rs 4.99 billion respectively, up 162 percent YoY.

Subsidiaries DTV and DBN delivered robust growth in terms of enhanced profitability at Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and NPAT levels.

Enhanced profitability at subsidiary level was underpinned by significant performance improvements in the Fixed Line, Broadband, and Television businesses of the Group. On an adjacent QoQ basis EBITDA (positive) and NPAT (negative) improved by 173 percent and 48 percent for DTV and 432 percent and 57 percent for DBN respectively.

Dialog Group revenues were recorded at Rs 30.67 billion for the nine months ended September 30, 2010, up 16 percent YoY and 4 percent QoQ.

Similar growth was delivered in terms of Group EBITDA which was recorded at Rs 11,151 million, up 5 percent QoQ and 74 percent YoY. The Group EBITDA margin improved by 12 percentage points YoY, to reach 36 percent. The positive growth trajectory in terms of EBITDA underpinned robust growth in Group NPAT of 138 percent YoY and 23 percent QoQ.

Driven by robust performance in the mobile market, the company recorded revenues of Rs 9,671 million in Q3 2010 and Rs 28,068 million for the first nine months.

Company revenue grew by 16 percent compared to the first nine months of 2009 and 4 percent relative to the previous quarter.

Dialog's Mobile subscriber base stood at 6.7 million as at end of September 2010, recording a 6 percent growth YoY.

The third Quarter of 2010 featured the transient impact of downward tariff adjustments in the mobile market, immediately following the introduction of floor rate regulations in July 2010.

Accordingly, Core Mobile revenues (excluding interconnection income) which exhibited 13 percent growth YoY, declined marginally by 1.5 percent on an adjacent QoQ basis. Notwithstanding the transient impact of tariff adjustments across the sector, total revenues were bolstered by increased consumption of mobile voice and mobile broadband services, as well by interconnection income, resulting overall in a 4 percent growth in revenue on an adjacent QoQ basis.

Sri Lanka Farmers Earn a Premium for Produce by Mobile Use

27th October 2010, www.lankabusinessonline.com

Use of mobile phones has helped Sri Lankan farmers get better prices for their produce and the technology can help reduce poverty, according to a new United Nations study, officials said.

"There is an informational dimension to poverty - poor people need lots of information for their livelihoods such as on market prices, inputs, weather," said Sriganesh Lokanathan of LIRNEasia, a think tank which helped prepare the report by United Nations Conference on Trade and Development.

A study done by LIRNEasia on small farmers in Dambulla, an agricultural centre in central Sri Lanka, found that 11 percent of their cost of production goes towards information search, "quite a high percentage," Lokanathan said.

"Information communications technologies (ICTs) have a role in trying to bridge this information gap," he told a news conference held to launch the UNCTAD report called 'Information Economy Report 2010: ICTs, Enterprise and Poverty Alleviation'.

"Without it the vulnerability of poor people increases. ICT can give them pertinent information in time and as accurately as possible."

A study by LIRNEasia this year found that farmers with access to 'Tradenet', a local service that gives prices through mobile phones, are able to earn a premium for their produce.

"By just having market price information several times a day they get premium of 23.4 percent on the average price," said Lokanathan. "So there are real impacts ICTs are having."

The increased access to information through mobile phones has enabled farmers to explore cultivation of different crops and to grow higher value ones that increase incomes and get crop advisory services.

Lokanathan said the potential for ICTs like mobile phones to alleviate poverty in the least developing countries was high as in most LDCs half the rural population is not covered.

But he said it was important to ensure such ICTs were affordable and the experience of South Asia, which has the lowest mobile phone rates, could be useful for other countries.

The UNCTAD report suggests encouraging improving mobile coverage in rural areas and making them more affordable, Lokanathan said.

The report focussed on ICT adoption by poor people, or what's known as BOP - bottom of the pyramid.

"More demand-driven intervention is needed. Policymakers need to better understand local needs," he said. "They need to be aware of what works and what does not in the local context."

The UNCTAD report looks at how ICT can be used in enterprises poor people engage in like fishing and farming and how the poor can be involved in the ICT sector itself, such as selling phone reloads.

Related Info:
Dialog Tradenet - Agricultural Produce Price Information in Sinhala

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.

Sri Lanka Mobile Users Grow by 25.4pct to 15.86mn While Wireline Use Go Down

04th October 2010, www.lankabusinessonline.com

Sri Lanka's mobile subscribers grew 25.4 percent to 15.86 million in the second quarter of 2010 from a year earlier and a wireline contraction has bottomed out, official data shows.

At the end of the second quarter of 2010 Sri Lanka had 15.86 million mobile users up from 11.49 million a year earlier.

Mobile users grew 5.1 percent from the first quarter figure of 15.04 million, according to data released by the Central Bank.

Sri Lanka's regulator imposed floor prices on mobiles after intense price competition and an economic downturn pushed operators into losses. But operators had become leaner during the period.

Wireline users, sold mainly by Sri Lanka Telecom, a affiliate of Malaysia's UT group grew 1.0 percent to 879,690 in the second quarter from a year earlier. Users were up from the first quarter number of 875,509. In the first quarter of 2010 users fell to 875,509.

Fixed wireless users grew 3.8 percent to 2.61 million in the second quarter from a year earlier. Total fixed users grew 3.1 percent to 3.4 million.

Internet and email connections grew 8.3 percent to 260,000 in the second quarter from a year earlier.

Sri Lanka Mobile Phone Payment System in Place by Year End

02nd September 2010, www.dailynews.lk, By Charumini De Silva

The Central Bank hopes to introduce mobile phone payment systems to Sri Lanka by the end of this year. The Central Bank has drafted the guidelines for mobile phone payment systems and called for public comments.

The guidelines are issued with the aim of promoting safety and effectiveness of mobile payment schemes.

These guidelines have been sent to mobile service providers, banking and financial institutions for observation, a senior Central Bank official told Daily News Business.

Through this system account holders are able to operate their own accounts via mobile phones to debit or credit to their own accounts or credit accounts of third parties within the same bank or in another network. The mobile payment system is also a retail payment system, which is much secure, safe and easy. This will support to increase the mobile usage and bank transactions more frequently.

The mobile payment system is also helpful for the rural community where they could access their bank accounts without coming to the city. The Central Bank is taking all measures to ensure the security and the safety of the transactions to build the trust of consumers.

The Central Bank has not yet finalized the prices of the registration fee, but it will be a reasonable amount where all segments of communities can afford.

They also expect a good response from the young generation who are interested in the latest technology.

Sri Lanka Central Bank's Guidelines for Mobile Phone Payment Systems

27th August 2010, www.lankabusinessonline.com

Sri Lanka's Central Bank has drafted guidelines for mobile phone payment systems and called for public comments, according to a notice on its website.

Mobile payments will be allowed through accounts in licensed banks and registered finance companies as well as Custodian Account Based Systems operated by non-bank service providers.

Service providers can open 'e-money' accounts for customers and issue e-money by accepting physical money, the guidelines said.

It called for public comments on or before October 18, 2010 to be sent to the Director Payments and Settlements at psd@cbsl.lk

The Central Bank said the guidelines are issued with the aim of promoting safety and effectiveness of mobile payment schemes.

The Customer Account Based System through banks is based on the customer accounts maintained by financial institutions from which the service can only be offered to account holders.

Under this system, account holders are able to operate their own accounts via mobile phones to debit or credit their own accounts or credit accounts of third parties within the same financial institution or in another bank.

Two types of facilities are offered, a 'basic level' in which fund transfers are not allowed and only information can be accessed, and a 'standard level' where actual payments can be done.

The Custodian Account Based System to be offered by celcos allows them to open e-money accounts for customers and issue e-money by accepting physical money from customers.

Such non-bank service providers must operate custodian accounts with banks in which they are required to deposit all funds collected from customers.

Mobile payment services are to be allowed only in Sri Lanka rupees and only for domestic transactions.

All foreign inward remittances to the mobile accounts must be routed through the custodian banks and credited in rupees.

Mobile Payment Service Providers (MPSP) are required to report any suspicious transactions of e-money holders based on the guidelines of the central bank Financial Intelligence Unit.

MPSPs also cannot grant any form of credit to mobile account holders, pay interest or profit on the mobile account balances or anything else that would add to the monetary value of the e-money or issue e-money at a discount

Mobile Payment Service Providers are also required to use strong encryption standards for protecting sensitive and confidential information of the bank and customers while in transit.

They are also required to have security measures to prevent criminal activity while using Near Field Communication (NFC) based mobile payment systems.

Related Info:
Mobile Payments Guidelines - Central Bank of Sri Lanka

Sri Lanka Mobile Use Grows 30pct in 1st Quarter

15th July 2010, www.lankabusinessonline.com

Sri Lanka's mobile phone subscribers grew 30 percent to 15.0 million in the first quarter of 2010, while fixed wireless users grew 4.7 percent and wireline users were flat, official data show.

Fixed wireless subscribers grew to 2.58 million users in the first quarter from 2.47 users a year earlier, while wireline subscribers fell 555 to 875,509 telecom data released by the central bank showed.

But wireline users increased from a December quarter low of 871,248 ending a contraction in the category. Wireline is sold only by Sri Lanka Telecom, which is jointly owned by Sri Lanka's government and Malaysia's UT group.

In Sri Lanka wireless access is sold mainly using CDMA technology by Sri Lanka Telecom, Lanka Bell, Suntel and a fixed access unit of the cellc Dialog Axiata.

During 2009 wireline users fell by 17,731, while fixed wireless users only grew by 2,128.

From this week Sri Lanka's telecom regulator has put floor prices of 2.0 rupees a minute for mobile calls and 50 cents for interconnection between networks.
Internet and email subscribers have grown 6.8 percent (16,000) to 250,000 in the first quarter from a year earlier.