Sri Lanka Telecom Annual Report 2004  
 
Sri Lanka Telecom - Focussed on Goals Beyond
Home
Vision and Mission
Chairman's Message
Board of Directors
CEO's Message
Business Review
Social Impact Report
Management Discussion and Analysis
Financial Reports
 
 
         
  Business Review
   
 
Fixed Telephony

Playing the Lead Role

SLT is the flagship telecommunications service provider in Sri Lanka. When one considers that telephone services were introduced to Sri Lanka in 1880 and for a large part of history thereafter our forebears the Postal and Telecommunications Services and after them, the Telecommunications Department “carried the torch”, one can appreciate the tremendously stable grounding and penetration SLT enjoys today.

Today, SLT commands 87% of the market for fixed line operations providing a total of 860,468 Direct Exchange Lines (DELs).

For the year 2004, SLT provided 53,656 new connections.

Telephone connection is now available on demand in most locations in the Colombo Metropolitan area and in other major cities. In rural areas the Company has improved its ability to meet demand and installation is available on demand in most areas where the network is present, such as by way of radio link.

SLT is exploring more cost effective ways of expanding its rural network, since the financial returns from this sector remain poor.

Our customer profile is wide and varied and consists of top multinational corporates, through small and medium scale entrepreneurs to urban and rural folks.

Our telecommunications network has the widest reach and is the most technologically advanced in Sri Lanka. It features a fully digitalised telecommuincation transport network, reaching deep into every region of the country supported by its own transport backbone. It comprises of 500 digital switching nodes with 80 master telecommunication exchanges divided into 29 area codes each served by a secondary switching centre. The secondary switching centres are in turn connected to four tertiary switching centres at Colombo, Kandy, Galle and Anuradhapura and hence routed to the Company’s National Switching Centre in Colombo.

We run approximately 950 km of fibre optic cabling supported by microwave, which link key towns with Colombo.

Details »


Mobile Telephony

From Strength to Strength
Mobitel, wholly owned by SLT is Sri Lanka’s second largest mobile operator in terms of revenue. However, it can be proud of many features in its operations which supersede the competition.

For example, Mobitel is the only service provider in Sri Lanka to have a fully EDGE enabled GSM system in Sri Lanka. Indeed, Mobitel was the first network in the world to offer an EDGE enabled mobile operation.

The key initiative of Mobitel during 2004 was to continue the roll out of its GSM operations. This single factor catalysed huge growth for Mobitel and has enabled it to move ever closer to its goal of becoming Sri Lanka’s No.1 mobile operator, delivering the 4 Cs - Coverage, Customer Care, Clarity and Content.

Mobitel’s presence within the SLT fold has galvanised great synergies for both institutions. To SLT, Mobitel has brought the capability of becoming Sri Lanka’s only fully integrated telecommunications service provider, offering both fixed line and mobile services in addition to its Data, IP and Internet services.


More Mobitel Customers
As at 31 December 2004, Mobitel had a customer base of 285,000. This was a 99.3% increase over 2003. Of this customer profile the majority were GSM customers.

Mobitel’s market share has increased to 19% in 2004 as against 11% for 2003. This astronomical growth was largely fuelled by the introduction of GSM services.

Details »


Data & IP

Out of the Call Box

Over centuries and up until very recently, the icons of the telecommunications industry across the globe were the familiar, red, street corner call box, the domestic telephone handset and kilometre upon kilometre of winding telephone lines, stretching unbroken from one telephone post to the next and the next and so on.

What a transformation we see today.

Telecommunications today has gone from wire to wireless; from analogue to digital; from the exchange to the Internet. Today, the humble telephone of ages past has been transformed into a sleek, modern appliance, a fashion icon even, that has migrated from “desktops” to “palm helds” and offers a hitherto unimaginable range of services that have long superseded simple voice transmissions.

Welcome to SLT’s Data and IP services - offering a range of facilities that deal with the sourcing, transmission and storage of non-voice based data. At the end of 2004, the Company had a market share of 65% in data services.

SLTData - The ‘Data Gateway’
SLT offers a full portfolio of domestic data leased line services under the name “SLTData”.

The Company has leveraged its existing fibre optic infrastructure to offer a host of IP based services such as IP-VPN, SLT Broadband, VOIP and Internet Data Centres. In support of this initiative, we have put in place an IP backbone serving the Colombo Metropolitan area, as well as Katunayake and Kandy.

The Company sees the main users of this product segment as coming from the corporate sector.

We also operate a Frame Relay service within the country.

Details »


Internet

Great ‘Net’ Results - Dial-up

SLT’s Internet service was launched in 1996. As you would expect, the demand for this service has been steadily growing over the years. The widening access that a wider cross-section of people are gaining to the web, augurs well for growth to be sustained well into the future.

The Company’s SLTNet is by far the country’s largest Internet Service Provider (ISP) by customer base. The services provided are varied and tailored to meet diverse needs for example those of students, the home and corporate offices.

In a broader sense, SLT offers its products in the categories of Post-Paid and Pre-Paid.

As at 31 December 2004, SLT counted 56,000 customers for its Post-Paid Internet, E-mail, Internet Leased Lines and SLT Broadband products, which is a growth of 11% over 2003, whilst the Pre-Paid subscriber base as at the same date reached 70,000 customers, which is a growth of 85% over 2003.

The “Student Inbox” and the “Light Surfer”
During 2004, SLT launched two new Internet based products called “Student Inbox” and “Light Surfer”. Both products were designed to promote the use of the Internet by students at an affordable price.

Born out of several workshops and seminars held across the island seeking to Impart more know how on Information Communication Technology to teachers and students, the new products were designed to fulfil the need for practical training in support of the theoretical inputs of these events.

The Student Inbox is a facility provided to all students of educational institutions approved by the Government, at a monthly fee of Rs.100. Applications for the product must be certified by the Principal of the institution.

The Light Surfer is a specially designed package for the novice or those whose usage of Internet and e-mail services is of a minimum duration. For a monthly fee of Rs. 250, the “Light Surfer” can enjoy the first 15 hours of web surfing free of charge, every month.

These two new product offers were made in line with SLT’s aims to popularise Internet usage by improving accessibility and affordability, whilst increasing international bandwidth.

Details »


International

Hello, World…

Calling someone half way around the world today is as easy as sitting back in a comfy chair and dialling. No operators, no booked calls, no lost connections. The technology and accessibility available to the industry today has truly made the world a smaller and more reachable place - for people from Dondra to Point Pedro.

The Company maintains direct links with 54 countries but provides international telephony to 223 countries through transit arrangements with other telecommunications operators. As at 31 December 2004, SLT enjoyed an international connectivity of 5,737 circuits of which 14 countries including the USA, UK, Canada, Australia, India, Germany and Hong Kong each have more than 120 circuits available.

The Company has sufficient switching capacity to meet current as well as anticipated levels of demand for international voice and data traffic. The technical infrastructure that supports SLT’s international telephony consists of three gateway exchanges, two cable landing stations, three satellite earth stations and one mobile earth station, augmented by the access we enjoy to the undersea optical fibre cable facilities of SEA-ME-WE 2 and SEA-ME-WE 3.

SLT and BSNL
As has been commented on by the CEO in his message, one of the highlights of 2004 was the fulfillment of measures under the agreement signed between SLT and India’s No. 1 telecommunications company, Bharat Sanchar Nigam Limited (BSNL), where under the initial agreement signed in October 2003, a micro-wave link was revived to carry voice traffic for Indian telecommunication traffic aimed at global locations.

Under a further MoU signed in August 2004, BSNL and SLT principally agreed to initiate the construction of a undersea optical fibre cable between India and Sri Lanka catering to voice and data requirements, not just between the two countries but possibly across the SAARC region.

Details »
Page Top