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Dialog tipped to become 2nd largest fixed-line operator
Following the acquisition of Suntel Limited, Dialog Axiata aspires to be the second largest fixed telephony market operator with a market share of 16 percent, once Suntel is merged with Dialog Axiata’s fully-owned subsidiary, Dialog Broadband Network (DBN).
According to a presentation by Dialog Axiata, the company currently has 5 percent market share in the fixed sector being in the 4th position while Suntel is in the 2nd position with a market share of 11 percent. Thus, the Dbn-suntel merged entity will have a 16 percent market share,
In terms of fixed sector revenue market share, Suntel is the second largest with a 10.7 percent market share while Dialog and Lanka bell have 5.2 percent and 10.2 percent, respectively. Sri Lanka Telecom boasts of the largest market share with 73.9 percent.
The presentation also showed that Suntel currently has over 350, 000 connected subscribers. However, nothing was mentioned about the number of active subscribers as the operator has a lot of retail pre-paid customers who may or may not be using the service now.
Stating the rationale behind the acquisition, the presentation showed that Dialog is anticipating cost synergies up to Rs.600 million leading to superior cost competitiveness through optimization and maximization of network footprint, network consolidation and spectrum rationalization and outlet network and support operations rationalization.
The presentation also showed that revenue and EBITDA of Suntel has been on a declining trend since 2007. In 2010, the company has made a revenue of Rs.4, 834 million and an EBITDA of Rs.1, 297 million, down by 27 percent compared with the previous year. See page 22
Dialog tipped to become 2nd largest fixed-line operator
Following the acquisition of Suntel Limited, Dialog Axiata aspires to be the second largest fixed telephony market operator with a market share of 16 percent, once Suntel is merged with Dialog Axiata’s fully-owned subsidiary, Dialog Broadband Network (DBN).
According to a presentation by Dialog Axiata, the company currently has 5 percent market share in the fixed sector being in the 4th position while Suntel is in the 2nd position with a market share of 11 percent. Thus, the Dbn-suntel merged entity will have a 16 percent market share,
In terms of fixed sector revenue market share, Suntel is the second largest with a 10.7 percent market share while Dialog and Lanka bell have 5.2 percent and 10.2 percent, respectively. Sri Lanka Telecom boasts of the largest market share with 73.9 percent.
The presentation also showed that Suntel currently has over 350, 000 connected subscribers. However, nothing was mentioned about the number of active subscribers as the operator has a lot of retail pre-paid customers who may or may not be using the service now.
Stating the rationale behind the acquisition, the presentation showed that Dialog is anticipating cost synergies up to Rs.600 million leading to superior cost competitiveness through optimization and maximization of network footprint, network consolidation and spectrum rationalization and outlet network and support operations rationalization.
The presentation also showed that revenue and EBITDA of Suntel has been on a declining trend since 2007. In 2010, the company has made a revenue of Rs.4, 834 million and an EBITDA of Rs.1, 297 million, down by 27 percent compared with the previous year. See page 22
