Strategic Direction

Internet usage and demand for the data and entertainment services in the country will continue to rise. Hence, a key strategic objectives of the SLT Group is to drive broadband-based consumer and enterprise services. This will include expanding the broadband footprint via the ‘Next Generation Network’, ‘National Backbone Network’ and provision of ADSL2+, VDSL2, optical fibre, carrier-grade Wi-Fi and both fixed and mobile 4G LTE technologies.

The SLT Group’s total integrated solution portfolio includes voice, Internet, networking, data hosting, managed services, cloud computing services and mobile based consumer and enterprise solutions provided through its fully owned subsidiary, Mobitel via its 2.5G, 3.5G and 4G LTE networks.

Regionally, SLT aims to be a key player by providing Global Services through major investments in multiple international submarine cable systems such as SEA-ME-WE 5, SEA-ME-WE 4, SEA-ME-WE 3, Bharat-Lanka submarine cable system and Dhiraagu-SLT submarine cable system.

In the paragraphs that follow we discuss the key strategic initiatives of the SLT Group in respect of its fixed and mobile ICT businesses.

Strategic Direction of Fixed ICT Operations

Summary

Objectives	Strategies
Operational excellence	Make SLT a great place to work by creating ‘centres of excellence’
	Promote business synergies through an integrated group approach
Customer and market centricity	Offer innovative ICT and smart lifestyle solutions to all, anywhere, anytime
	Provide best in class delivery and assurance
Enhanced network and technology	Enable network and IT convergence and develop the network and IT infrastructure to handle the growing data traffic
Sustainable and inclusive growth	Catalyse national economic development
	Invest in sustainable CSR initiatives

Strategic objective: Operational excellence

Make SLT a great place to work by creating ‘centres of excellence’

Organisational transformation will be an ongoing process to face future challenges. It will focus on organisational restructuring, process automation associated with process simplification and realigning with the business requirements, good governance, promoting a learning and innovative culture, implementing best practices within the organisation, improving employee productivity and their level of satisfaction.

Realignment of the organisation structure to the needs of the business was successfully carried out in late 2015. Functions and key performance indicators (KPI) related to the new organisation structure were established and agreed by Chief Officers, and duly communicated to all concerned. Monitoring and evaluation systems are in place and operationalised in 2016.

Promote business synergies through an integratedgroup approach

We will aim to reap the benefits of synergy by sharing resources and developing centres of excellence (CoE) within the SLT Group and also through a collaborative approach (within the Group and external partners) to invest, innovate and to seize market opportunities more effectively.

In this context we see considerable opportunities for synergy with our mobile operator subsidiary Mobitel. However, we cannot merge, as required by the regulator. This is because merging of operators will be detrimental to the customer as it can affect pricing. However, we may synergise operationally, as we did in 2015, working as one team in all operational and marketing aspects such as cross selling each other’s products. For example, in providing a comprehensive ICT solution to a customer, Mobitel could take care of the mobility aspects, while SLT handles the overall architecture, data security, data centres, cloud and connectivity.

Strategic objective: Customer and market centricity

Offer innovative ICT and smart lifestyle solutions to all, anywhere, anytime

This requires penetrating into new market segments by moving beyond the traditional boundaries with innovative solutions that support prospects and customers to adopt a smarter lifestyle. Under this theme SLT make efforts to address the emerging market threats through new business models and future-focused products and technologies.

Provide best in class delivery and assurance

One of our long-term objectives is to differentiate our services through a superior quality of service and customer experiences that go beyond the expectations of our customers. Modernising the channels of interaction for the best convenience of customers, developing long-term relationships and earn the best ratings and recommendations from our customers are covered under this theme. Some of our KPIs under this include winning an international quality award and meeting global standards on service delivery and service interruptions.

Strategic objective: Enhanced network and technology

Enable network and IT convergence and upgrade the network and IT architecture to handle the growing data traffic

In addition to convergence and expanding access network footprint with high speed broadband capabilities SLT will introduce future oriented technologies and services to support ‘Smart Sri Lanka’ plans.

We will speed up the nation in moving towards a digital economy by introducing the most modern technologies to provide super high speed broadband/Internet services, both wired and wireless. We have already acquired capabilities to serve 20 Mbps broadband speeds to a majority of customers connected to our wired network. Our goal is to gradually increase it to meet over 100 Mbps speed to all our broadband customers in time to come.

The ‘Smartline’ which uses the latest optical fibre technology that was launched in 2015 is one such initiative to take the nation towards a super speed digital economy and SLT will continue this drive until we seamlessly connect the whole nation to digital services available from anywhere in the world at any time. In this drive, SLT is increasing its core and transport network capabilities too in order to cater the data traffic volumes that are expected to grow rapidly with the expansions of SLT’s network footprint and digital services.

Strategic objective: Sustainable inclusive growth

Catalyse national economic development

We contribute towards economic prosperity through pioneering technology and by expanding the broadband footprint. We support the growth of the country’s leading corporates as well as SMEs that contribute to employment and economic development. We are targeting each and every household with ultra high speed fibre optic connectivity and an array of ICT solutions over the Internet protocol (IP) space.

SLT will continue to invest heavily to further strengthen the country’s global connectivity, thereby supporting the national objective of making Sri Lanka the digital hub of the region. Examples include recent upgrades to several undersea optical fibre cable systems as well as launching of new systems.

As the incumbent ISP of Sri Lanka we maintain connectivity with all Internet hot spots across the globe, which also saw SLT setting up a point of presence (PoP) in Singapore. As the sole national backbone network (NBN) provider, SLT has deployed a countrywide, secure fibre network to fulfil domestic transport requirements of service providers.

Invest in sustainable CSR initiatives

We reach the hearts and minds of people as a responsible corporate citizen.

SLT always stays close to the public through their corporate social responsibility projects and activities with special focus on propelling social values, assisting underprivileged and needy groups of people in society and protecting heritage for the future. In addition, SLT contributes for the programmes on building a healthy, knowledgeable and responsible society.

Strategic Direction of Mobile ICT Operations

Summary

Objectives	Strategies
Strong overall market position	Gain market share in identified segments
	Upgrade branches
	Build the Mobitel brand
Enhanced broadband experience	Expand the network and increase download speed
	Acquire more spectrum
	Drive broadband adoption
Info comm services provider to key economic sectors	Build a strong infrastructure
	Innovate and build on synergies
	Create and develop the market
A world class organisation	Implement industry best practices

Strategic objective: Strong overall market position

Gain market share in identified segments

• Gain market share through enhanced broadband experience and service offerings
• Focus on the Northern and Eastern Provinces that are opening up by building brand equity with intense communication and promotional offers and increase market share three-fold with a broad range of product and service offerings
• Consolidate market position in other areas
• Gain corporate sector market share to eventually become the market leader

Upgrade branches

• Uplift and refurbish existing branches with state-of-the-art facilities to serve consumer needs and enhance efficiency

Build the Mobitel brand

• Exploit SLT’s fixed ICT solutions provider brand equity to complement Mobitel’s mobile ICT business
• Implement CSR projects across consumer segments that are structured and sustainable.

Strategic objective: Enhanced broadband experience

Expand the network and increase the download speed

• Expand the network to build a strong digital infrastructure with the Stage 8 network expansion project which will enhance coverage to rural areas and facilitate faster download speeds

Acquire more spectrum

• Plan to acquire more spectrum to drive broadband through economical deployment of infrastructure

Drive broadband adoption

• Initiate product and promotional activities to drive broadband adoption
• Promote usage of smart phones and smart devices across customer segments; offer upgrades and buy back options.

Strategic objective: Infocomm services provider to key economic sectors

Infocommunications or infocomm is the natural expansion of telecommunications with information processing and content handling functions including all types of electronic communications (fixed and mobile telephony, data communications, media communications, broadcasting, etc.) on a common digital technology base, mainly through Internet technology.

Build a strong infrastructure

• Build the infocomm services around the strong infrastructure we are laying out that will support a wide array of products and services.
• Expand on 4G and further improve speed
• Work on affordability as well

Innovate and build on synergies

• Think out of the box, as innovation is largely disruptive; we are not looking at traditional ways of doing things
• Work on synergies between the business of Mobitel with that of SLT

Create and develop the market

• Collaborate with competitors to create and develop the infocomm market; it is not a zero sum game
• Get prepared to manage a complex business as we expand outside telecom to embrace new facets of business such as e-commerce and m-cash services that come under other regulators such as the Central Bank of Sri Lanka.

Strategic objective: A world class organisation

Implement industry best practices

• Implement industry best practices and processes to achieve speed, reliability and convenience
• Drive efficiency and agility through world class systems (ERP/CRM)
• Maintain above industry EBITDA margin through network cost leadership and operational efficiencies.