Zenith

February, 22 (LBO) – After growing at breakneck speed for the past several years, Sri Lanka's mobile phone market is losing pace and competitors are pecking away at dominant player Dialog's market share, an equities research report has said. In 2006 Sri Lanka's mobile penetration hit 27.1 percent according to official Telecommunications Regulatory Commission data.

Capital Alliance Research estimates that mobile subscriber penetration would reach 38 percent in 2008, while dominant player Dialog Telekom last year estimated it would be around 43 percent.

Dialog Telekom, a subsidiary of Malaysia Telekom has been a key driver of Sri Lanka's high mobile sector growth.

"..even with a 43 percent projection of mobile penetration as at end 2008, percentage growth in total mobile subscribers in 2007 and 2008 would be around 32 percent each year compared to growth rates of close to 50 percent in the recent years," Capital Alliance said.

"However though the percentage growth is slower, the numbers of subscribers being added to the network could be similar to the past."

Capital Alliance said Dialog's market share has slipped marginally to 60 percent from 62 percent in 2006.

"This is a trend which, if continued, would see su