Tea with Suren J. Amarasekera, CEO Mobitel

Shirajiv Sirimane

Sri Lanka's annual mobile penetration of 30 per cent puts the country ahead of India and most of the other countries in the region. One of the key factors for this phenomenon growth is the affordability, convenience that is being offered via a mobile.

CEO Mobitel, Suren J. Amarasekera speaking to Daily News Business said obtaining a phone connection was a luxury a few years ago and today it is within the reach of anybody who would spend a few thousands. This has been made possible by the mobile operators.

Mobitel says that they are the first in Asia to provide 3.5G and HSPA (High Speed Data Access) in South Asia.

He said they introduced that with the intension of providing the cutting edge technology Super 3.5 G HSPA which is a first for the region. "We are surprised to the response we received for this and we expect it to increase even further after the school holiday season. This proves that Sri Lanka is ready for 3.G," he said.

Q: What was the reason for Mobitel to invest Rs. 200 million to launch 3.5 G?

The latest 3.5 G which we introduced while providing cutting edge technology also provides faster speeds. We have also noted that most of the handsets used by customers are 3G enabled and we expect the product to catch up.

Q: Would the introduction of 3.5G increase internet penetration?

Yes definitely. In comparison to voice the internet usage is very low. One reason for is the unavailability of computers. With introduction of 3.5G we expect more customers to use internet. Mobitel M3 boasts 7.2 Mbps downlink speed and 1.9 Mbps uplink speed, which is a large improvement over the ordinary 3G.

Super 3G provides Video Calling at Rs. 3 per minute and it this is probably the lowest price you will ever get.

Q: Is the language barrier having a negative impact on the use of internet?

Not any more. There are several sites which do not need the English knowledge for a person to log on to the internet. There are new sites that are developed that are Sinhala and Tamil language enabled.

Q: Did you adopt a wait and see attitude before 3G was introduced?

No. Mobitel had been running test trials from last August and our studies showed that normal 3G was not sufficient to meet the future demand of Sri Lanka.

Q: What is the present coverage of the 3.5G?

Mobitel has already covered 60 per cent of the population and intends to expand this to around 90 per cent. Currently the Super 3.5G covers Colombo, Greater Colombo and most major cities including the main roads of the country.

The existing Mobitel customers could just change their settings and get connected to the new 3.5G network and this is an advantage.

New customers can walk in to any of our shops and just walk away with a 3.5 G connection.

Q: What is your increase in subscriber growth?

Mobitel had around 8,200 000 subscribers one year ago and today it has increased to over 1.4 million. Our target is to reach the two million mark soon. We have also witnessed a 35 per cent increase in income.

Q: How do you see the competition in the industry and the inclusion of India's Airtel next year?

The competition is always good as it helps to increase standards and provide a better deal for the customers. By investing in 3.5G we have invested rightly in the future.

Q: Has the refurbished and low piece phones in the open market had an impact on the subscriber growth?

Yes this open market segment has made phones affordable to the common man as well and today second hand phones can be purchased for Rs. 2,000. Since people are changing phones and going in for latest models there is a leap in the second had market.

Currently Mobitel is studying if we could formulate an open market where these second hand phones could be traded.

Q: What is the trend of customers for phones in Sri Lanka?

A customer usually uses a modern fashion phone for about six months and gets a latest version. Or else the usage of a new phone by a customer is around three years. With the introduction of 3G we expect more customers to use larger screens in the future to access internet as well as watch TV.

Q: Network defaulters are readily accepted by other networks? Is the industry looking at a loyalty programme?

Well this is an area that has been looked at. Unfortunately such a system has not been formulated as yet.

Q: What are the operators doing to avoid congestion especially during an emergency and on days such as Christmas and New Year's Eve?

We are prepared for this to meet the extra load. During emergencies SMS are usually not congested. However during festive seasons the problem crops up when a person sends the same messages to multiple persons at once.

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Bio-data

Suren J. Amarasekera, CEO/Mobitel

Amarasekera, an old boy of Royal College, Colombo, obtained his Master of Business Administration from the University of Chicago, Graduate School of Business, USA, and Master of Science and Bachelor of Science in Computer Systems Engineering from the Syracuse University, USA.

Prior to assuming his role as the Chief Executive Officer of Mobitel in June '05, Amarasekera had acquired over 13 years experience working for Singapore Telecommunications (SingTel) with the initial half in Sri Lanka and the latter half at its head office in Singapore.

While with SingTel, Amarasekera had served in various capacities including Director Account Management, International Business Development, Product Management, Product Development, and General Management.

He was the first local to have been entrusted by SingTel to head (with board member status) any of its operations overseas.

Recipient of a comprehensive sponsorship to pursue a MBA with University of Chicago - Graduate School of Business, as awarded by the Career Development Council (CDC) of SingTel.

Amarasekera was awarded Distinction in an intensive residential programme titled "International Programme on Project Appraisal and Risk Analysis," aimed at Senior Finance and Project Managers in India, Nepal and Sri Lanka which was held at the Jawaharlal Nehru Institute for Development Banking Hyderabad, India, conducted by the Harvard University Faculty.

Amarasekera serves as a Council Member of University of Colombo.