SLT expects fiber investments to boost broadband growth
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Sri Lanka Telecom expects its heavy investments in its fiber network to start paying off, with broadband revenues dominating the company’s balance sheet over the next three years.
The operator has invested over 70 billion rupees ($446.25 million) to expand its fiber network over the past two years, and connected its 2 millionth household to the network in late 2017.
Broadband and data services meanwhile accounted for nearly 60% of SLT’s total revenue of 44.5 billion rupees for 2017, up from 38% in 2012.
The company also has also connected 315 government premises to its fiber network and plans to connect 545 more by the end of this year.
But SLT noted that margins from data are decreasing even as infrastructure capex grows, and revenue from international voice and other traditional services is on the decline due to the threat from OTT players.
The company said fiber adoption will also boost third party OTT service consumption, which may further threaten traditional revenue sources but will also contribute to a better return on investment on its fiber network.
Questions & Answers
Q.What percentage of SLT's total revenue did broadband and data services contribute in 2017?
What percentage of SLT's total revenue did broadband and data services contribute in 2017?
Broadband and data services accounted for nearly 60% of SLT’s total revenue in 2017. This figure represents an increase from 38% in 2012, highlighting a significant shift in revenue streams for the company.
Q.How much has SLT invested in expanding its fiber network over the last two years?
How much has SLT invested in expanding its fiber network over the last two years?
Over the past two years, SLT has invested more than 70 billion rupees in expanding its fiber network. This significant investment is expected to lead to broadband revenues dominating the company's balance sheet soon.
Q.How many government premises has SLT connected to its fiber network, and how many more does it plan to connect this year?
How many government premises has SLT connected to its fiber network, and how many more does it plan to connect this year?
SLT has connected 315 government premises to its fiber network so far. The company also plans to connect an additional 545 government premises to its network by the end of the current year.
Q.What is the company's outlook on the impact of fiber adoption on third-party OTT services and its traditional revenue?
What is the company's outlook on the impact of fiber adoption on third-party OTT services and its traditional revenue?
SLT believes fiber adoption will boost third-party OTT service consumption. This may further threaten traditional revenue sources but is also expected to contribute to a better return on investment for their fiber network.
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