Lanka Bell posts Rs. 1.2 bn net profit

Tops 600,000 subscriber mark; revenue up 94% in residential user and 18% in corporate customer base

Spectacular growth in the year to-date and in 2006-07 has taken CDMA market leader Lanka Bell’s subscriber base beyond 600,000, reinforcing the company’s position as the second largest ‘fixed-line’ service provider in Sri Lanka’s highly competitive telecom industry.

The pioneer CDMA operator and the only 100 per cent Sri Lankan owned entity in the sector, Lanka Bell celebrated its impressive performance this week with a gala ceremony to felicitate the people behind its success, including corporate and residential customers, regulators, government officials and key suppliers.

Speaking at the event Lanka Bell Managing Director Suren Goonewardene disclosed that the company had ended fiscal 2006-07 with a net profit of Rs 1.2 billion, following revenue growths of 94 per cent in the residential sector and 18 per cent in the business sector. The overall CDMA line count had grown by a whopping 210 per cent during that year, and this growth had continued in the current year, he said.

“We strongly believe,” Mr. Goonewardene said, “that the secret to our success is a combination of innovation, quick response time, quality service and competitive pricing. This is complemented by our universally recognised ‘Sri Lankan-ness’ and our proven commitment to urban as well as rural markets. In the corporate market segment, Lanka Bell’s customised solutions for businesses have driven growth.”

Mr. Goonewardene said the latest developments at Lanka Bell would see evolutionary growth in the company as it breaks new ground. One of these developments is its partnership with FLAG Telecom, a subsidiary of India’s Reliance Communications for a US$ 27 million undersea cable project. This will mean high speed data and internet access and far superior quality IDD facilities to several thousands of customers all over the country and enable crystal clear international connectivity around the globe, linking key business markets in Asia, the Middle East, Europe and USA. Scheduled to be completed in 2007, the project will enable Lanka Bell to offer direct global connectivity and a complete end-to-end solution via FLAG Telecom’s FALCON cable system, which is the first terabit private undersea cable system in Sri Lanka, he said.

Lanka Bell is also all set to introduce the state-of-the-art wireless broad band system, Worldwide Interoperability for Microwave Access or WiMax later this year, Mr. Goonewardene disclosed. This new technology will enable Lanka Bell to provide wider capacity and coverage with optimum spectrum utilization, and immunity to interference will be maximized, increasing the quality of services, he said.

Nearly 50 people who contributed to Lanka Bell’s achievement of becoming the second largest fixed line operator in Sri Lanka were felicitated at the ceremony at the Cinnamon Grand which included an audio-visual presentation, traditional dance acts and a presentation of plaques.

Lanka Bell was established in 1997 with an initial investment of US$ 150 million and was the pioneer of CDMA technology in Sri Lanka. The company has invested more than Rs 6 billion in its operations and offers the lowest call charges in the local market. Through its network of 52 business offices Lanka Bell has established a strong presence in 22 districts to date. Among the company’s key strengths have been its strategic partnerships for retailing of its products and services as well as for customer service.

Lanka Bell CDMA connections are sold through the vast islandwide branch network of Singer Sri Lanka on purse-easy instalment schemes, and the company has entered into arrangements with seven leading banks offering its customers conveniently located outlets islandwide and telebanking access for bill settlement.