Dialog to invest $ 30 million on new submarine cable project

•  Boost for competitive international bandwidth market and affordability as facility will be opened up for all players

Dialog Axiata Plc yesterday disclosed that it will be investing $ 30 million in the new submarine cable that will provide the largest infusion of international bandwidth to Sri Lanka.

The quantum of the investment was revealed via a filing to the Colombo Stock Exchange yesterday whilst Dialog’s deal with the Bay of Bengal Gateway (BBG) consortium to establish a cable landing station in South Colombo was announced on Wednesday.

Dialog Axiata Plc Director and Group CEO Dr. Hans Wijayasuria told the Daily FT that the committed investment was significant and will be part of the annual $ 125 million that the company has been spending on network expansion.

He also said that the project would ensure abundant availability of international bandwidth to Sri Lanka’s ICT industry and broadband consumers alike in addition to at affordable prices, which is essential for the country to remain competitive in a global economy.

Dialog’s international Cable Landing Station (CLS) will be open to all other operators, thereby enhancing the competitive bandwidth market.

Other global investors in the BBG consortium include Telekom Malaysia Berhad (Malaysia), Vodafone Group (UK), Reliance Jio Infocomm (India), Oman Telecommunications (Oman) and Emirates Telecommunications (UAE).

The BBG submarine cable system, spanning around 8,000 kilometres, will link Sri Lanka and the region from Singapore to Oman/UAE to high capacity internet hubs in Singapore and India and to onward submarine cable pipes to Europe and the US.

Dialog said the project is expected to be fully commissioned by end 2014.