Telco Suit

Sept 19, 2007 (LBO) – Sri Lankan fixed wireless operator Suntel, a unit of Sweden’s Telia, has said net profit for the first half ending June 2007 was up seven percent to 311 million rupees. Revenue rose to 3.6 billion rupees from 3.3 billion rupees in the first half of 2006

In a statement accompanying its results, the company has revealed that it has filed action against Electrotek Network Services to recover 69.3 million rupees for telecommunication services rendered by the company but had been counter-sued for over four billion rupees.

Suntel is a privately owned telecom operator, whose medium term debentures are listed on the Colombo Stock Exchange, that is the subject of a takeover battle between local and foreign firms.

The company said in its action against Electrotek Network Services, the defendant had filed an answered denying the company’s claim and made a counter claim on account of wrongful termination of telephone services.

The basis on which the 4,180 million rupee counter-claim has been computed is not stated in the answer, it said.

Suntel said the case has been fixed for trial.

Suntel’s audited 2006 net profit was 1,049 million rupees up