Leaner Model

May 13, 2009 (LBO) – Benefits of Dialog Telekom’s six month long cost reduction program, including retrenching 280 staff, will start kicking in by the fourth quarter of this year, one of the Sri Lankan firm’s top managers said. A group wide re-branding of operations took place recently.

œ’Dialog’ will also be a single ˜Dialog’. There won’t be GSM, CDMA, TV or Broadband suffixes. We believe that simplifying everything is the way forward. Everything is about having less clutter, explains Perera.

Beside logo change reflected in its advertising the rest of the branding will be phased-in over time when facilities need upgrading.

Perera however emphasizes that œcosts have to be incurred in order to continue delivering to the customer what he wants.

“The success of the exercise can’t be measured overnight; these are all long term costs that we are attacking.” The top celco’s revenues fell 6.9 percent in the December quarter last year owing to price competition ahead of the launch of Indian Bharti Airtel group’s local venture and depressed economic conditions when people took fewer calls.

Dialog’s December quarter loss topped a record 3.9 billion rupees forcing the celco