SLT to upgrade their network?

tubal · 1 SLT to upgrade their network? Mon Mar 07, 2011 8:07 pm

tubal

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Anyone know what to make of this?
http://www.lbo.lk/fullstory.php?nid=1117557048

When DIAL upgraded their network, they did a write off on their old infrastructure which pushed DIAL into the red zone. What's SLTL planning?

(note: this is not my usual sarcastic question, this time I am asking out of curiosity :-) )

dhamm · 2 Re: SLT to upgrade their network? Mon Mar 07, 2011 10:47 pm

dhamm

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SLT's current infrastructure is upto some extent saturated. (ex. ADSL speed). And they can not offer broadband services all over the island with good service levels. Even the revenue they getting from conventional telephony services has no much room to increase. So their new revenue targets are broadband services such as ADSL, IPTV, corporate data voice services etc. But the problem is their infrastructure is not ready to handle such demand. Specially in terms of coverage, speed, outside plant. Specially, they have challenges in fixed line quality from Exchange to the home. The CDMA is faily OK only for conventional telephony services and its not meant for BB services.

Many of the countries have fiber to the home connectivity which can offer high bandwidth services to Cx but in Sri Lanka we don't have those. In this perspective SLT badly needs upgrade to their infrastructure. I feel that the intention of the CEO is that.

Its true that these upgrades will cost massive amount of money, but it will generate much more revenue for them in the future. But only thing is those initiatives should be properly managed otherwise it will be a disaster like Dialog case. Its said that one such telco had to pay more than the project cost to officials in different local institutions island wide to get the work done in their fiber laying.

Then again we should not forget that SLT is the only telco who spend on capital expenditure during the recent recession period.

Gaja · 3 Re: SLT to upgrade their network? Mon Mar 07, 2011 11:34 pm

Gaja

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i think it will be more benefit to all the telecom service providers if they can share the huge investments such a towers. Also how do you look at the future of the Dialog if the Mobile portability is introduced in Sri Lanka, will it have positive or negative impact on them?

Meta Trader · 4 Re: SLT to upgrade their network? Tue Mar 08, 2011 12:00 am

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Gaja wrote:i think it will be more benefit to all the telecom service providers if they can share the huge investments such a towers. Also how do you look at the future of the Dialog if the Mobile portability is introduced in Sri Lanka, will it have positive or negative impact on them?

mobile operators competition is good for consumer and it is a black hole to mobile operators .

tubal · 5 Re: SLT to upgrade their network? Tue Mar 08, 2011 5:43 am

tubal

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dhamm wrote:SLT's current infrastructure is upto some extent saturated. (ex. ADSL speed). And they can not offer broadband services all over the island with good service levels. Even the revenue they getting from conventional telephony services has no much room to increase. So their new revenue targets are broadband services such as ADSL, IPTV, corporate data voice services etc. But the problem is their infrastructure is not ready to handle such demand. Specially in terms of coverage, speed, outside plant. Specially, they have challenges in fixed line quality from Exchange to the home. The CDMA is faily OK only for conventional telephony services and its not meant for BB services.

Many of the countries have fiber to the home connectivity which can offer high bandwidth services to Cx but in Sri Lanka we don't have those. In this perspective SLT badly needs upgrade to their infrastructure. I feel that the intention of the CEO is that.

Its true that these upgrades will cost massive amount of money, but it will generate much more revenue for them in the future. But only thing is those initiatives should be properly managed otherwise it will be a disaster like Dialog case. Its said that one such telco had to pay more than the project cost to officials in different local institutions island wide to get the work done in their fiber laying.

Then again we should not forget that SLT is the only telco who spend on capital expenditure during the recent recession period.

Dhamm, that's not the issue. Investments do not get entered into the P&L but write downs and write offs do. There is no question that they need to upgrade their systems. The question is will that result in a massive write off or write down?

Obviously when you upgrade your existing telco network, the old one becomes a piece of scrap.

Oh and BTW, DIAL spent huge sums of money modernising their network over the last two years (and that's what resulted in the write off in their P&L )