SLT to secure 500,000 CDMA
Sri Lanka Telecom (SLT) can easily connect more than 500,000 CDMA (Code-Division Multiple Access, a digital cellular technology that uses spread-spectrum techniques) telephones before the end of the year, if they obtain the Board of Investment (BOI) appoval under section 17, which they have applied for, according to stock market analysts.
“SLT has section 16 BOI approval, but if they get section 17 approvals, they can forgo the import duty on CDMA telephone like their competitors, Suntel and Lanka Bell,” a stock market analyst told The Sunday Times FT, adding that if the approval is granted the company will experience financial benefits in terms of tax and duty concessions.
He explained that presently an SLT CDMA telephone costs Rs.18,000 whereas its competitors are selling at Rs.12,000. “This gives both Suntel and Lanka Bell price competitiveness, but with BOI section 17 approval SLT can easily secure more than 500,000 CDMA telephone connections before the end of the year, because of its brand loyalty,” he pointed out.
The Telecommunication Regulatory Commission’s (TRC’s) figures show Lanka Bell having 300,000 CDMA telephones, whereas SLT currently has 400,000. Suntel has below 300,000 CDMA telephones.
Dialog also will join the race by the end of this month, where they hope to secure 50,000 CDMAs, the analyst said.