Dialog Axiata pumps USD 152.4 million into its network

Dialog Axiata recently announced that it has entered two supplementary agreements with the Board of Investments (BOI) amounting to a whopping USD 152.4 million (~LKR 56.7 billion) investment in building the company’s telecommunications infrastructure in Sri Lanka. This investment comes in the form of USD 112.8 million from Dialog Axiata PLC and USD 39.6 million from Dialog Broadband Networks (Private) Limited.

Accordingly, these agreements will cover several areas for Dialog Axiata, most notably the expansion of the 4G-LTE networks. The idea is to improve the existing infrastructure to reach the dark spots across the island, particularly the rural and deep indoor coverage. This also falls in line with the TRC’s recent consideration to shut down the 3G network to ease up the spectrum to facilitate 4G and 5G services.

Doubling down on the Dialog Axiata infrastructure

Further, the USD 152.4 million investment includes upgrading the IP and fiber networks, enhancement of big-data analytics and customer interaction capabilities, and the development of Dialog Axiata’s WiFi and broadband networks. Commenting on the move, BOI Chairman Raja Edirisuriya mentions that the organization is “pleased to see the continued investments and unwavering commitment” and that it “exemplifies the innumerable opportunities available in Sri Lanka to foreign investors.”

The Dialog Axiata Group is a subsidiary of the Axiata Group Berhad, which is one of Asia’s biggest telco operators spanning eight countries including Malaysia, Indonesia, Bangladesh, Cambodia, Singapore, India, and of course Sri Lanka.

“This latest investment agreement bears testimony to Axiata’s continued confidence in the nation and our commitment to Sri Lanka and its people,” says Axiata Berhad Chairman Tan Sri Shahril Ridza Ridzuan. “As always, we greatly value our long-standing partnership with the Board of Investment and remain committed to investing in Sri Lanka to accelerate the country into a Digital Nation,” he further mentions.

Nudging through to 2023

Dialog itself is one of the biggest FDIs in Sri Lanka, hitting a total of USD 3.1 billion according to the company. In its financial performance for FY 2021, the telco reported a group Net Profit After Tax of LKR 17.1 billion (42% YoY growth).

However, amidst all this, Dialog Axiata recently upped its pricing for all of its products and services. The telco operators state this was largely owing to the effects of the covid-19 pandemic compounded by the effects of the current economic crisis and implications of the interim budget 2022. Thereby, effective 5 September, Dialog’s Mobile, Fixed Telephone, Broadband Plans, and Value Added Services went up by 20% with Pay Television Services rising by 25%. This is on top of the 3% increase in VAT to 15%.