Dialog Broadband to Expand LTE Service With Sky TV

Dialog Axiata PLC announced today that its wholly owned subsidiary Dialog Broadband Networks (Private) Limited (“DBN”), had entered in to a Share Purchase Agreement (“SPA”) with the shareholders of Sky Television and Radio Network (Private) Limited (“Sky”) for the acquisition of 100% of the ordinary shares in issue of Sky at a consideration of Rupees 800 Million. Following the completion of the acquisition, Sky will be amalgamated with DBN.

Sky is a licensed Pay Television Operator and is currently in possession of spectrum resources in the 2.3GHz spectrum band, assigned to Sky by the Telecommunications Regulatory Commission of Sri Lanka (“TRCSL”) for the provision of Pay Television Services.

The 2.3GHz spectrum band has been adopted globally for the provision of LTE Services and DBN’s Fixed LTE service launched in December 2012 is based on a 15MHz allocation within the said band. The acquisition of a further spectrum resource in the same band would enable DBN to expand its fixed LTE service resulting in the expansion of its high speed broadband delivery capacity via LTE technology. The enhanced spectrum resource will also enable DBN to enhance its Fixed 4G-LTE services in terms of capacity, burst speeds and bandwidth delivered to Sri Lankan homes and enterprises.

DBN has received the approval of the TRCSL for the acquisition of Sky and the amalgamation of Sky with DBN along with its spectrum resources. The TRCSL has also granted approval for the redeployment of the afore-referenced spectrum for the purpose of expanding the broadband services delivered via LTE technology.

DBN launched Sri Lanka’s first 4G-LTE service in December 2012 in the city of Colombo, propelling Sri Lanka’s telecommunications sector in to the 4G era. DBN’s 4G-LTE service has since expanded to the cities of Kandy, Jaffna and Galle and delivers Fixed Broadband services to a rapidly increasing number of Sri Lankan homes.