Can you give us some background information on Dialog GSM in terms of its historical background, its structure and also main responsibilities?
MTN Networks - better known as Dialog GSM - the brand name of the GSM cellular service, was incorporated in 1994 under the purview of the Board Of Investment of Sri Lanka. The company is a fully own subsidiary of Telecom Malaysia. From the inception of the company our prime focus has been the operation of Sri Lanka's pioneer GSM cellular network. Today after a short period of five years we have reached a market leadership position. Dialog GSM offers state of the art digital cellular services, Mobile Internet/ WAP; we are very proud that our services are on par with those found in developed countries. Our Value Added Service portfolio features a Mobile Internet Portal, WAP based consumer and industrial applications and also hosting of Short Message Service based on interactive mobile services.
We entered the ISP market last year and we also have a growing volume of Internet subscribers. The network is a regional leader in International Roaming - a service we commenced in 1997, well ahead of our regional counterparts - at the moment our International Roaming Network spans over 80 countries.
Telecom Malaysia has invested close to US $90 million in Sri Lanka since first entering the Telecommunications industry of this country in 1994. Telecom Malaysia, a regional telecommunications giant, has a proven track record of being a committed investor in Sri- Lanka, and has pledged its commitment to long term investments in the country's infrastructure.
Since Dialogue GSM introduced digital phone systems to Sri-Lanka What has been the development in the telecom sector and what have you contributed to this development in the last couple of years?
In a developing market it is always challenging to introduce state of the art technology at a competitive price. In 1994 the incumbent cellular networks were using analogue technologies. Breaking through the market with an expensive digital technology was a singular challenge. We were driven by our philosophy that Sri-Lanka should be on par with developed countries in the sphere of mobile communications - or any technology for that matter, and that Sri Lankan consumers should experience the best technologies available. Our approach to the market was hence one of taking bold steps to introduce the most innovative services to the market place. International roaming can be taken as a good example. Few industry observers expected the service to be as popular as it is today - both for Sri Lankan's travelling abroad, as well as for visitors to the country from overseas. Similarly in 1998 we introduced the first set of interactive mobile services. At the time, this type of leading edge mobile technology was used only in a handful of countries in the region. Our confidence grew after the positive response we received from our consumers, which lead us to redefine the mobile communication industry over the past few years using a combination of leading edge technology and affordable pricing capable of expanding the market - I believe that sums up our contribution to the Sri-Lankan telecom sector.
We have also always emphasized on the quality related aspects of our business. We became the first telecom operator in South Asia to achieve ISO 9002 certification in 1999 and followed it up with being the first operator to achieve ISO 9001 certification for design and development - in 2001.
What are the newest available services that you have put to the market and will there be more to look forward to the Sri-Lankan Consumer?
Our most recent technology introduction was WAP or Mobile Internet- the services were launched nearly a year ago. Based on the WAP service we built a comprehensive mobile Internet portal at www.DialogWap.Com. The portal has enabled Several Sri-Lankan businesses to join hands with us to provide access to their services via mobile devices. Some examples of content providers on the country's first WAP portal are Sri-Lankan Airlines, Yellow Pages, and Pizza Hut.
The Very latest Developments in the GSM world are the 2.5G services or GPRS - Packet switched data, Our commitment is not to lag behind any other country in terms of technology, and before long our consumers would see an all new dimension to the mobile internet.
In addition to technological innovation we have also made inroads in to rural markets in Sri Lanka using cell-based pricing schemes, which provide for low cost communications in under-developed parts of the country. Affordable prepaid services have also gone a long way to expanding the traditional market space for mobile communications.
Who are your main competitors in Sri-Lanka and could you tell us what is your competitive advantage in relation to them?
The cellular market is very competitive here; there are 4 players. All of them are doing a great job, and together we account for 1/3rd of all telephone lines in the country. Our company's competitive advantage has been that we have consistently added value to our services, which I believe has given us an edge over the competition. Furthermore we have made sure that we maintained a meaningful relationship and partnership with our customers. We have complimented our services with customer loyalty programs and community development programs. One such community development program is the Change Trust Fund, - a unique initiative, which earlier this year won a GSM World award at the GSM world congress held in Cannes. Under this scheme we invite our subscribers to donate half a percent of their mobile phone bill towards charity and we match that figure on a one to one basis. At the moment the trust fund supports the school for the deaf and blind, the National Child Protection Authority and the Jaipur Foot program, which provides artificial limbs for the victims of war and natural disability. We started this project one year ago and gradually the number of customers who join in is rapidly increasing. | Can you give us details on the facts and figures of the company like the turnover for last year, number of staff?
Since we are a private company and we are yet to be listed on public stock exchange I am not at liberty to reveal specific performance data. However it would suffice to say that the company has been growing at a steady rate of 40-60 percent every year with respect to most performance indicators. Today our subscriber base has reached 200,000, and the company employs around 400 people, whom we consider to be our greatest asset in a competitive market place.
Are you the company that holds the widest coverage in Sri-lanka and do you have any expansion plans for the future?
We have the widest digital coverage but the analogue networks have somewhat wider coverage due to the propagation characteristics of their transmissions. The market expectations however are heavily polarized towards digital services and in this respect we are well ahead in our offering with respect to coverage as well as services.
Telecom Malaysia has exhibited strong confidence in the telecommunications industry in Sri Lanka. Recent investment pledges include an additional US$30 million for the expansion of coverage in to less developed parts of the country.
GSM is a subsidiary of Telecom Malaysia; to what extent are they involved in managing the company?
Telecom Malaysia has actively supported the growth of the company since its inception. Today Telecom Malaysia has around 11 subsidiaries in Africa and Asia and in all their operations has been committed to localization of the management. Our senior management team comprises two expatriates seconded from Telecom Malaysia and four Sri Lankan's. Telecom Malaysia, while granting us the autonomy to guide the business, has always been at hand to support the company and invest in its growth.
How about your future outlooks, as Far Eastern Economic Review might be back to do a new report in 3 to 4 years time, where do you see yourself within that future with all the troubles that the country has been experiencing?
I thinkthe growth potential for telecommunications in Sri Lanka is immense. Next year the International Voice monopoly of the national PSTN - Sri-Lanka telecom will be lifted, and I believe further steps towards liberalization will be taken. There is also a move towards the introduction of a Calling Party Pays regime for mobile phones, which would greatly enhance the growth of the industry. Our aim is to retain and grow our position as a leading telecom operator in Sri-Lanka. We will continue to grow our product offerings. We certainly see the potential of expanding into other telecom related services as well as Internet related services. Since GSM is moving rapidly towards 3rd Generation services we see an exciting period ahead with customers beginning to demand more services at an affordable price.
Our readers are always looking for new business opportunities in those countries that we report on such as Sri Lanka, what will be your final message to them regarding the potential that the country has?
I think Sri-Lanka is somewhat underrated by foreign businesses and investors My message to them would be that Sri-Lanka provides a very vibrant and sophisticated market place. As we enter the information age we must remember that Sri Lanka is rich in knowledge workers and literacy rates are very high. People are very well educated. In the knowledge economy Sri-Lanka would be an ideal place to sight a business. Many would turn away from Sri Lanka due to the on-going civil strife. However, as experienced by our parent company, the investments they made have been well rewarded, and the disturbances in the north of the country have not disturbed our operations. With the growth of the Internet and Virtual Business structures, the importances of civil strife or any other form of localized problems are decreasing rapidly. It will no longer be relevant where you site your business as long as you have access to good knowledge workers. Basically what you need are good human resources, an energetic market environment and a government and administration who promotes investments. I do not think that a war really comes into this equation for future business and Sri Lanka would qualify on most counts as an excellent location for business.
NOTE: World Investment News Ltd cannot be made responsible for the content of unedited transcriptions
|
