| Sri Lanka Telecom, the country’s largest fixed-line operator, said that it would install wireless service in the northeast as a cease-fire moves into its fourth year.
The move comes after Sri Lanka Telecom was awarded a license to install wireless service, said company representative Mohan Ratnayake.
"All our transmission towers and infrastructure are installed. We should be ready to install the technology in two months," Ratnayake said. "The revenue per user in the northeast is much higher there and there's a lot of potential for growth, so that's why we will focus our wireless technology up there."
Sri Lanka Telecom has 890,000 fixed-line subscribers and will use wireless technology to add 400,000 subscribers over the next three years, Ratnayake said. The company has been granted permission to install 150,000 fixed-lines in the next year using wireless technology, said Piyatissa Ranasinghe, a Ministry of Telecommunications spokesperson. This year, the company opened the country’s largest microwave-transmission tower in Jaffna.
"Advanced technology, including wireless, can help us with faster deployment and to reduce operational costs by 20 to 30%," Sri Lanka Telecom's Chief Executive, Shuhei Anan, said.
Sri Lanka Telecom will compete with fixed-line operators Lanka Bell and Suntel, owned by Telia of Sweden. On the wireless side, the company competes with Dialog Telekom, the island's major mobile operator.
"This is good news for Sri Lanka Telecom, as the technology will help it clear a waiting list of subscribers which they could have lost out to competition," said S. Jeyavarman, of National Asset Management. "Sri Lanka Telecom must search for avenues to lift revenue and expand. Their revenue growth has been slow."
Source: Bloomberg News - WDR/Intelecon Regulatory News
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