Business

Fifth mobile phone operator
TRC to decide on new licence
By Ashwin Hemmathagama

Despite the speculation on international telco companies eyeing the mobile phone operator licence in Sri Lanka, telecom watch-dog TRC yesterday denied any decisions taken awarding the 5th mobile phone operator status.

Telecommunications Regulatory Commission (TRC) Director General Kanchana Ratwatte told The Island Financial Review that applications would be closed end of this month and a decision will be announced accordingly.

"The application process will be closed end of this month. As of now four companies have expressed some interest in getting the licence, but we are yet to receive the applications. Depending on these applications the licence will be given to a single player," he said.

According to industry sources, Singapore Telecommunications Ltd. and India’s Reliance Infocomm Ltd, and Maxis Communications Berhad (MCB) are among the interested parties.

Maxis Communications Berhad (MCB) which is the fifth largest public company in Malaysia and a key player in the mobile communication market is currently looking at expanding its service to Sri Lanka. MCB will be bidding for Sri Lanka’s fifth mobile operator’s license for GSM 1800 at a cost of US $ 4 million followed by two other operators; Singapore Telecommunications and India’s Reliance Infocomm.

MCB which started commercial operations in 1995 currently provides a wide range of innovative mobile, fixed and international network services to its customers. Recognised for its quality and innovative communications solutions, MCB has won several domestic and international awards for its products and services. Mobile services, the principal driver of the Group’s business, are marketed under the Xaxis brand for postpaid mobile services and Hotlink for prepaid mobile services. Both offer basic voice and data services as well as advanced data and infotainment services via diverse technologies to more than eight million customers. The fixed line network offers broadband Internet, high speed data, VSAT and WLAN products to the enterprise market while international gateway services offer international connections to Maxis mobile and fixed line customers.

With the launching of 3G technology in 2005 Maxis is poised to transform itself from a predominantly voice and basic data service provider into a leading advanced data and infotainment services provider. The Group also expanded overseas, with the acquisition of PT Natrindo Telepon Seluler in Indonesia and Aircel Limited of India in 2005 and 2006 respectively.

With the four existing GSM mobile communication service providers in Sri Lanka the local markets have become one of the fastest growing sectors of the national economy. During 2005 the vigorous competition among the 3 fixed access telephone operators, 4 mobile telephone operators, 32 external gateway operators, 29 data communication and Internet service providers, 4 paging operators, 2 pay phone operators, and 2 trunk radio operators have helped to increase the total telephone density to 23.6 per cent from 16.4 per cent in 2004.

 

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