Airtel commits $100 m to Lankan operations

Bharti Airtel Lanka, a subsidiary of Indian telecom giant Bharti Airtel, has signed a $100-million investment agreement with the Board of Investment (BOI) of Sri Lanka to begin Lankan operation by this year.

The agreement, signed yesterday, is the second phase of the company's commitment to invest $200 million in Sri Lanka over the next 5 years, according to BOI executives.

With mobile penetration in Sri Lanka estimated at around 30 per cent and growing at a rate of approximately 2 million mobile users per annum, Bharti is looking at cornering a high market share in the next few years.

Airtel is expected to begin operations in a big way in Sri Lanka by this year end, according to officials. It will, however, have to compete with the Telekom Malaysia-owned Dialog Telecom (the largest operator in Sri Lanka), Celltel Lanka (owned by Luxembourg-based service provider Millicom International Cellular), Hutchison (owned by Hong Kong-based Hutchison Telecommunications) and Sri Lankan government-owned Mobitel.

Sri Lanka has 2.7 million fixed access subscribers, 7.9 million mobile and 2,00,000 internet and email subscribers.

"The investment will enable Airtel to roll out all passive infrastructure necessary for the launch of its services," a BOI statement said.

The agreement was signed by the chairman and director general of the Board of Investment of Sri Lanka, Dhammika Perera, on behalf of the government and Olof Haag, chairman and country head, Bharti Airtel Lanka and Amali Nanayakkara, CEO, Bharti Airtel Lanka on behalf of the telecom company.

Speaking on the occasion, Haag said the signing of the agreement signified the strengthening of Airtel's commitment towards taking the telecommunications industry in Sri Lanka to "new heights".

The implementation of the passive infrastructure covering radio communication towers, generators and shelters will not only strengthen Bharti Airtel Lanka, but also resource other players who may opt to employ "our infrastructure in deploying their services in the future as well," he said.

This initiative will open up an era of infrastructure sharing, inviting all players to leverage what we have set in motion, the top Airtel official said.

Commenting on the signing of the contract, Minister of the Enterprise Development and Investment Promotion, Sarath Amunugama, said the investment will strengthen the future of the industry and further enhance the already vibrant telecommunications market in Sri Lanka.

"We are encouraged by the efforts made by Bharti Airtel Sri Lanka," the minister said.