Sri Lanka Telecom obtains BOI status & Sri Lanka Telecom Mobitel signs BOI agreement for Stage III GSM and 3G expansion project

15th May 2007

Sri Lanka Telecom (SLT), the country's number one and only integrated communications provider received BOI status from the Board of Investment of Sri Lanka (BOI). Under the section 17 of BOI law, SLT will be able to import/purchase (locally) project-related items free of customs duty.

Sri Lanka Telecom Mobitel, The National Mobile Service Provider, today followed through with its pledge to invest in its digital platform under its Stage III GSM and 3G expansion project by signing an agreement with BOI. This additional infrastructure investment will further drive capacity to extend services to a total of 1,750,000 subscribers covered by increasing its base stations to 1,500 supported by an intelligent core network equipped with a state-of-the-art soft switch to be fully deployed before the end of 2007. The Stage III expansion drive is meant to build on both the existing voice-centric services and to significantly expand non-voice services.

While thanking to the BOI and GOSL for the decision taken to grant tax concessions to SLT through BOI status, SLT CEO, Shoji Takahashi stressed that this is an initiative action taken by BOI and GOSL to make country's fast growing telecommunication a level playing field as all SLT's competitors are currently enjoying benefits of BOI status. He further said this will pave the way to a rapid development of communications in the country.

Commenting on the Stage III expansion project, Sri Lanka Telecom Mobitel's Chief Executive Officer Suren J. Amarasekera, stated that "this was an important milestone for the company, as it will increase the potential of the company's offerings to its consumers. It will take the customer to a higher level in mobile communications. Mobitel is extremely focused on transforming the power of its 3G capability into a superior customer experience that will be valued by the customers."

SLT plans to invest approximately Rs 20 billion (USD 200 million) within a period of 2 years to develop the telecommunication and data oriented services in Sri Lanka. SLT is the sole ADSL provider and market leader in fixed line telephony including CDMA and data service provisioning.

This investment for the launch of 3G technology builds on a series of successful and rewarding accomplishments in 2006, that had been an especially important year for Mobitel with the launch of Smart 5, the most revolutionary pre-paid package to have entered the market coupled with the popularity of the Double M post-paid offerings, reduced rates on IDD Buddy and breaking the language barrier in mobile communication through the introduction of Sinhala and Tamil SMS along with its extension of international auto-roaming to over 150 countries.

In the lead up to this stage, Sri Lanka Telecom Mobitel also extended its reach across the island enabling the purchase of pre-paid cards from postmen and at post offices through its collaboration with the Postal Department, in addition to the significant collaboration with Singer Sri Lanka as a Mobitel authorized dealer, having over 250 retail outlets, and was successful in establishing over 1000 bill payment points around the island creating easy and hassle free access to subscribers.

Sri Lanka Telecom Mobitel - the National Mobile Service Provider - is a wholly owned subsidiary of Sri Lanka Telecom. In January 2004, the company launched its full-fledged GSM network that is EDGE/GPRS enabled and designed to operate on dual bands. Investments committed to date in its 3G and GSM service offering total over US$200 million and are set to increase its present 600 base stations to 1500 base stations by the end of this year.