| Financial Times |
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Dialog tower network to become a revenue driver
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Dialog Telekom is expected to put up another 900 towers in the next two years to increase capacity and coverage of its GSM, 3G and CDMA networks, taking its tower network to approximately 2,000, senior company officials, who declined to be named, said.
Stock market analysts said that this tower network has the potential of becoming a separate revenue driver if Dialog could allow for a sufficient percentage of its towers to be rented by other operators.
“This is the same model that India has,” an industry analyst noted. “However, in doing so, Dialog should be careful not to increase the competitive strength of its sector peers, while also ensuring that the correct pricing policy is implemented,” he said. The company posted a first quarter net profit of Rs.1.1 billion, down 54 percent and below market expectations.
The analyst also noted that despite Dialog securing the market leader position for a number of years, its market share has been on the decline in the recent past.
“Although it has consistently outperformed the others in terms of net additions per quarter, Dialog has not been able to match the pace of growth in the industry,” he said. |
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