At the end of the second quarter of 2009, Dialog Tekecom PLC recorded its 7667 Million ( 7.66 billion) loss as a group and 7246 Million ( 7.24 billion) loss as a company. But the worst thing is this a 549% increasing of their loss when comparing to the previous quarter. altogether Dialog Telekom recorded 9536 Million ( 9.53 billion) loss for the last six months.
When Dialog making negative profits continuously, Mobitel, Sri Lanka’s National Mobile services provider or main competitor of dialog recorded 757 million ( 0.75 billion) profit for the last 6 months. Mobitel is a full owned subsidiary of Sri Lanka Telekom (SLT). As a group SLT recorded 3163 million ( 3.16 billion) profit for the 6 months ended 30 June 2009.
Mobitel subscriber base closed up on the 3 million mark just after the end of June 2009 growing by 61% from a total of 1.8 million at the end of first half 2008. 6 billion (approximate) is the subscriber base of Dialog Mobile and which grown by 2% when comparing with the last quarter
We can assume Tigo (name may be change) will come up with good products with low tariffs to attract the market. What happens then? Other competitors have to adjust their packages with new features and low tariffs. means reducing the profitability of all companies. What about Dialog ? How can they achieve the positivity because already making big losses. Its is also a threat for the Mobitel but they can reach more because of the bad performances of market leader dialog. May be up to the market leadership !
Original Article - http://wp.me/ptjVt-1ct
