Dialog picks up Asset Media

Dialog Telekom has bought Asset Media the operators of Neth FM. Neth FM was planning to launch a tv station by next february and they are the first media institution to acquire the license to launch a digital tv station. The interesting thing here is that the CEO of Dialog Telekom is showing an interest in moving into Digital Terrestial Broadcasting, DTH and Mobile Television. So what's next? Will Dialog Telekom buy CBNsat?

Given below is the newsreport on lbo.lk under the heading "Four Play"

Sri Lanka's Dialog Telekom moves into television services

October 02, 2006 (LBO) – Dialog Telekom has picked up a radio and television frequency license, which gives them the edge to rollout a host of infotainment services ranging from television to mobile phone services.

A unit of Telekom Malaysia, Dialog picked up the frequency by acquiring a 90 percent stake in Asset Media (Pvt) Ltd for 325 million rupees, the telco said Monday. Asset Media’s promoters – Nihal Seneviratne Epa and Lasantha Milroy Pieris – will retain a minority 10 percent stake. A greenfield operation, Asset Media also comes with its own broadcasting studio, a free-to-air and pay tv license. The digital convergence, also known as quadruple play or four-play, allows Dialog to offer cable television, broadband, fixed-line and mobile telephone services. The strategic diversification into the television broadcasting allows Dialog to move into digital terrestrial broadcasting, direct to home or DTH and mobile television services, its CEO Hans Wijayasuriya said. The investment, he said, keeps pace with global dynamics of convergence where communication and media technologies merge with telecommunication services. Ten months ago, Dialog moved into the broadband market by picking up a network operator MTT. The company also has a CDMA (code division multiple access) license, which allows Dialog to offer fixed line telephone services using cheaper mobile technologies. Dialog's CDMA operation, through its fully owned subsidiary – Dialog Broadband Networks – is due to start next January. In August, Dialog became the first in South Asia to commercially launch third generation mobile services or 3G, giving customers the facility for high speed web browsing, video streaming, online games, music and movie downloads. Sri Lanka, which became the first South Asian nation to start mobile services, when Celltel Lanka began operations in 1989, now boasts over 4.28 million subscribers, according to Central Bank figures.

Dialog Telekom, dominates the industry with over 2.75 million subscribers, followed by Mobitel Lanka, Celltel Lanka Ltd, Hutchinson. The telecom regulator is in the process of selecting a fifth operator.