April 26, 2007 (LBO) – Sri Lanka Telecom has received government approval to start an internet based television service, the company said Thursday. Sri Lanka Telecom shares close up 50 cents at 39 rupees. “Sri Lanka Telecom has been successful in securing a media license from the Ministry of Mass Media and Information to provide IP-TV services in the country,” SLT told the Colombo Stock Exchange in a disclosure.
“This will enable SLT to offer quality video and new integrated tv services over broadband networks.”
Sri Lanka Telecom is Sri Lanka’s only wireline operator. It also offers wireless CDMA fixed access and owns the cellular operator, Mobitel.
SLT, which is a third-owned by NTT, is currently in talks with Malaysia’s UT group about a possible take-over of the NTT stake.
A Sri Lankan government committee is studying the deal. SLT is majority owned by the government, and has first refusal in case NTT decides to sell its stake.
Last year SLT’s revenues from IP (Internet Protocol) based and data services grew by 645 million rupees, a 26 percent jump over 2005, SLT said, and broadband customers had reached 20,000.