Mobitel set to increase profits

All base stations 4G LTE compatible:

Sanjeevi JAYASURIYA

Mobitel is expecting to better its performance and recording profits surpassing last year’s net profit of Rs 1.5 billion. Mobitel contributed 40 percent in terms of revenue for the Group and 45 percent in operating profits in 2010.

Suren J. Amarasekera

Mobitel recently demonstrated 4 G/LTE as the first not only in Sri Lanka but in whole of South Asia to demonstrate the capabilities of the LTE enabled services.

The infrastructure in the present expansion numbering 1,000 base stations has 4 G/LTE capability. This was possible due to the foresight of the pragmatic Mobitel Board and our future investments in mobile broadband infrastructure will continue to harness the very latest in mobile technology, Mobitel CEO Suren J. Amarasekera told Daily News Business.

“With the fast development initiatives taken by the Government to propel Sri Lanka as a regional hub, there will be significant demand for ICT infrastructure. This has opened new opportunities for mobile operators to grow. The telecommunication industry performance is creditable considering the level of technological advancement,” he said.

Sri Lanka is ahead of the region in terms of telecommunication technology adaptation for which the Telecommunication Regulatory Commission of Sri Lanka deserves commendation.

The industry has outperformed many similarly situated countries in terms of penetration, price and coverage. The local industry players are moulded towards profitable growth despite lack of scale locally but by wisely adopting technologies that realizes global scale economies - 4G/LTE is yet another step in that direction.

The biggest challenge in offering 4G/LTE service immediately to the customers is the non availability of terminal devices at an affordable price in the global market. Mobitel is ready to make 4 G services available to customers when the terminal devices are available at an affordable price level.

Mobitel covers over 70 percent of the population with 3.5 G services and over 95 percent of the population with GSM at present. Further 3G coverage and capacity expansion is in progress with the present network expansion project. The challenge for the Regulator is to allocate and assign frequencies as there are multiple choices that are being pursued by different quarters globally. “Our adoption of 2.5G/3.5G/4G and the likes is robust considering that these various technologies have built in backward compatibility . The operators are mindful to enable users the flexibility to adopt the technology based on their needs and affordability,” Amarasekera said.

“Smart devices are taking the center stage at present and we are mindful of the strategies that we would want to pursue based on best interests of the consumer and the shareholders. The telecommunication industry being ahead of the curve and a pivotal sector, ICT adaptation will act as a catalyst to make doubling the per capita income. We are looking at increasing customers while being profitable. This, we will achieve by offering value enriching propositions to customers while also ensuring a return to our share holders’ investment,” he said.

“We are focusing heavily on the North and the East by providing continuous coverage and capability and offering the high speed data capability with 3.5G infrastructure that will be 4G/LTE ready. Mobitel is guided towards offering services that are relevant and that are best for each of the markets that it operates in. Hence, Mobitel strategy in technology innovation is driven by value innovation based on customer needs and wants and dreams.

In addition to the human communication needs that had remained dominant, Mobitel envisages an appreciable growth in machine to machine communication that will fast become common place over the next years to come,” Amarasekera said.