Dialog to Invest Rs. 33 Billion (USD 300 Million) in Sri Lanka's Telecommunications and Media Sectors
Single Largest Investor with Total investment of over Rs 90 Billion
Dialog Telekom - Sri Lanka's largest mobile communications operator, and one of the largest infrastructure investors in Sri Lanka, announced on Thursday 7th June, the signing of a landmark investment agreement with the Board of Investment of Sri Lanka (BoI) to invest a further Rs. 33 Billion (USD 300 Million) in the country's Telecommunications and Media sectors within the next 2 years.
The investment agreements were entered in to at a ceremony held under the distinguished patronage of the Hon Minister of Enterprise Development and Investment Promotion, Dr. Sarath Amunugama. The Investment agreements were signed by Chairman of Dialog Telekom Ltd (and Telekom Malaysia Bhd), Tan Sri Dato' Ir Muhammad Radzi bin Haji Mansor and Chairman/Director General of the Board of Investment of Sri Lanka, Mr.Dhammika Perera.
The investment will be targeted at large scale expansion of services across all regions of Sri Lanka. Associated infrastructure investments would include expansion of the company's GSM and 3G mobile networks, introduction of state of the art Value Added Services and the establishment of Broadband transmission networks across the island based on Fibre Optic and Microwave transmission technologies. The Company will also make substantial investments in the provision of International Bandwidth to Sri Lanka's ICT sector via the SeMeWe4 submarine cable. Dialog will also make investments in Customer Service and other support infrastructures with a view to expanding its network of support centres across Sri Lanka.
A substantial portion of the total investment pledged by the Dialog Group will be directed at fixed line Telephony and Broadband services via Dialog Broadband Networks (Pvt) Ltd. (DBN), and Digital Television Broadcast services via Asset Media (Pvt) Ltd., respectively. The investments in DBN will be directed towards the growth of CDMA based Rural Fixed Telecommunications Infrastructure, Wi Max based wireless broadband infrastructure and for the deployment of a National Fibre Optic backbone. Investments in Asset Media will be targeted at expansion of its Digital Satellite TV services and for the deployment of Terrestrial Digital Video Broadcasting (DVB) infrastructure in Sri Lanka.
Expressing his thoughts on the investment, Tan Sri Dato' Ir Muhammad Radzi said "This investment brings Dialog's total commitment to the Telco sector in Sri Lanka to over USD 800 Million, and emphasizes our commitment to, and confidence in, the Sri Lankan market. We are grateful to the investor friendly policies of the Sri Lankan Government, and consider Sri Lanka to be one of our most compelling success stories outside Malaysia. As South Asia's first quadruple player, Dialog Telekom has already delivered impressive results, and with this additional investment we intend to fulfill our objective of playing an even bigger role in not just the country's telecommunication landscape, but also in terms of the delivery of state of the art ICT (Information and Communications Technology) and Digital TV services".
Dialog GSM has spearheaded the mobile industry in Sri Lanka since the late 90's propelling it to a level of technology on par with the developed world. Dialog GSM is the country's largest cellular network providing services to over 3.5Mn customers across all provinces of the island, accounting for approx 60% share of the countries mobile sector and 45% of total telecommunications subscribers. The Company has also established itself as the largest Company on the Colombo Stock Exchange in terms of Market Capitalisation.
Dialog Chief Executive Dr. Hans Wijayasuriya said "Today, Dialog Telekom reiterates and reinforces its commitment to the Sri Lankan consumer. We will focus on developing Sri Lanka's ICT infrastructure spanning Mobile and Fixed Telecommunications, Broadband and Digital Television services to world class standards. We are continuously encouraged by our customers and we are confident that we will be able, as in the past, to deliver substantial social dividends to consumers and communities across Sri Lanka, and healthy returns to the shareholding public. Dialog is particularly proud of its capacity to implement and deliver on its promises - we fulfilled the investment commitments we made in 2006, one year ahead of schedule, and we foresee similar progress in relation to the investments we have pledged today. This has been made possible through the dedication and commitment of the Dialog Team, the consistent support of our principal investor Telekom Malaysia Bhd., and the encouragement and guidance of the TRCSL and other agencies of the Government of Sri Lanka for which we are extremely grateful."
About Dialog Telekom Limited
Dialog Telekom Limited is the largest mobile operator in Sri Lanka with over 3.5 Mn subscribers, representing approximately 60 per cent market share. It is also the largest listed Company on the Colombo Stock Exchange in terms of Market Capitalisation with a market capitalisation (as of 31 March 2007) of LKR 188.79 Bn (USD 1.73 Bn), representing 21.7 per cent of the market capitalisation on the Colombo Stock Exchange. The Company has the distinction of having become the first Company in Sri Lanka to achieve a market capitalization exceeding USD1Bn.
Dialog Telekom Limited is a subsidiary of the Telekom Malaysia Group. In addition to its core mobile telephony business, the Company provides international services, supporting an International Gateway infrastructure providing retail and wholesale international voice and data services under the brand name of Dialog Global. The Company also provides Internet services through Dialog Internet - a fully-fledged Internet Service Provider (ISP). Dialog Telekom also operates Dialog SAT, a mobile satellite service.
Dialog Broadband Networks (Pvt) Limited (DBN)
A fully owned subsidiary of Dialog Telekom Ltd, DBN is a key player in Sri Lanka's ICT infrastructure sector, providing backbone and transmission infrastructure facilities and data communication services. DBN is also licensed by the Telecommunications Regulatory Commission of Sri Lanka to offer Fixed Telephony services services in Sri Lanka. Dialog Broadband is soon to commence the provision of fixed wireless telephony services based on CDMA technology. Dialog Broadband also operates a WiMax based Broadband Wireless Access infrastructure aimed at the provision of high speed broadband services to enterprise and consumer markets.
Asset Media (PVT) Limited
Asset Media is a subsidiary of Dialog Telekom Ltd., and is licensed by the Ministry of Media to provide Television Broadcasting services, delivery of Pay Television and Cable Television Services and the operation of a Television broadcasting station.
Asset Media operates Dialog Satellite Television (Dialog TV) - a Satellite based Pay Television Service. Dialog TV features world class entertainment and the widest spectrum of channels with a special focus on News, Entertainment and Knowledge based programming. It supports a broad array of International content including CNN, BBC, HBO, Cinemax, AXN, ESPN, Discovery Channel, MTV (Music Television) and Cartoon Network, in addition to a wide portfolio of Sri Lankan television channels. Dialog Satellite TV uses state of the art Digital Video Broadcasting through Satellite (DVB-S) technology, and aims to be a trend-setter in Digital Satellite Television Broadcasting in Sri Lanka.
For more information on Dialog, visit www.dialog.lk
About Telekom Malaysia Berhad
Telekom Malaysia Berhad (TM), a leading regional information and communications group, offers a comprehensive range of communication services and solutions in fixed-line, mobile, data and broadband. As one of the largest listed companies on Bursa Malaysia with an operating revenue of more than RM16 billion, TM is driven to deliver value to its stakeholders in a highly competitive environment.
The Group places emphasis on continuing customer service quality enhancements and innovations. Currently, with investments and operations in 13 countries around Asia and globally, TM is focused on sustainable growth in both the local and international markets.
For further information on TM, visit www.tm.com.my.