May 13, 2013 (LBO) – Sri Lanka’s Dialog Axiata said it is buying a pay TV operator for 800 million rupees to gain control of 2.3GigaHertz brand spectrum which will be used for fixed broadband services. Dialog, a unit of Malaysia’s Axiata, said its fixed access division, Dialog Broadband Networks (Pvt) Ltd has entered into a deal to buy Sky Television and Radio Network (Pvt) Ltd, a company licensed to operate pay TV services.
The company will be merged after the purchase, allowing Dialog Broadband to use the spectrum for its fourth generation (4G-LTE) services.
Dialog said Sri Lanka’s telecom regulator had given the nod for the merger and re-deployment of spectrum for broadband services.
Dialog launched fixed broadband services using a 15MegaHertz frequency block in December 2012. The additional spectrum will allow the company to boost capacity, burst speeds and bandwidth delivered to its customers.
Originally launched in Colombo, the fixed broadband has since been expanded to Kandy, Jaffna and Galle, the company said.