With demand for fixed-line services falling as customers opt for mobiles, Sri Lanka Telecom (SLT) is trying to drive revenue growth by promoting high-speed Internet access and other new services as well as introducing new incentive packages.
A senior SLT official told the Sunday Times FT that many customers are using fixed line telephones only for incoming calls and using mobile phones for outgoing calls.
He added that an average middle level income earning family possessed at least three mobile phones and it has become the mode of connectivity at present .
He said another reason behind the revenue drop in the fixed lines sector is mainly due to ‘cost-cutting’ measures carried out by all customers, from large corporates to entrepreneurs, a trend also observed in the residential customer base.
Due to the present financial situation, the purchasing power of people has reduced, making them very price sensitive, he said.
SLT’s revenue plunged as demand for traditional fixed-line telephone services weakened, other SLT sources said.
Intense competition, and the economic downturn has had an adverse effect on revenues, which fell by 18% to Rs. 6,464 million during the 1st half of 2009, compared to Rs. 7,920 million in the same period last year.