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Monday, September 5, 2011

SLT evaluating Suntel for a buyout-official

By Channa Fernandopulle

Sri Lanka Telecom PLC, country’s largest fixed line telecom services provider is currently evaluating a purchasing bid of Suntel, a top SLT official confirmed to Mirror Business on the sidelines of a recent media briefing.

“We are aware that Suntel is offering itself for sale, and we have been among the companies to evaluate it for purchase. However, at this point I cannot confirm anything” SLT Chief Executive Officer Greg Young said responding to a question by Mirror Business.

Young went on to say that if at a later date SLT was to take action to purchase Suntel, he would inform the media at the proper time.

Sources at SLT also affirmed that the SLT is seriously looking at purchasing Suntel, which is believed to be having a very sound corporate clientele.

According to news reports, SLT is likely to spend US $ 200 million on the deal. However, Young did not disclose any price figure to Mirror Business.

As per analysts, the so called golden days for Suntel is over, as the CDMA bubble burst long before, due to low tariffs offered by mobile service providers.

“Earlier people used to carry CDMA phones in their vehicles, citing that the tariffs are cheaper than mobile.

But its no longer happening as the mobile service providers have come up with very competitive tariffs with features like free incoming,” an analyst pointed out.

Apart from wireless voice services, Suntel offers hosted PABX, broadband internet, virtual mail server, web creation and hosting, and managed security services for businesses.

Suntel has enjoyed offers from a number of foreign and local telecom operators since 2007, from India’s Mahanagar Telephone Nigam Ltd (MTNL), TATA Group, UAE’s Etisalat and Dialog Axiata.

Suntel is a joint venture company that brings together resources and expertise of Swedish telecom giant Overseas Telecom AB, Metrocorp (Pvt) Ltd., Townsend Limited of Hong Kong, the National Development Bank, and International Finance Corporation (IFC) - a member of the World Bank Group.

The company commenced its operations in December 1996 and is the 3rd overall largest in Sri Lanka and has a base of 550,000 customers as of January 2008.

source - www.dailymirror.lk