Dialog broadband to expand

Dialog Axiata PLC announced that its wholly owned subsidiary Dialog Broadband Networks (Private) Limited (“DBN”), had entered in to a Share Purchase Agreement (“SPA”) with the shareholders of Sky Television and Radio Network (Private) Limited (“Sky”) for the acquisition of 100% of the ordinary shares in issue of Sky at a consideration of Rs 800 million.

Following the completion of the acquisition, Sky will be amalgamated with DBN. Sky is a licensed Pay Television Operator and is currently in possession of spectrum resources in the 2.3GHz spectrum band, assigned to Sky by the Telecommunications Regulatory Commission of Sri Lanka (“TRCSL”) for the provision of Pay Television Services.

The 2.3GHz spectrum band has been adopted globally for the provision of LTE Services and DBN’s Fixed LTE service launched in December 2012 is based on a 15MHz allocation within the said band.

The acquisition of a further spectrum resource in the same band would enable DBN to expand its fixed LTE service resulting in the expansion of its high speed broadband delivery capacity via LTE technology.