Ms Leisha De Silva Chandrasena, Chairperson, Sri Lanka Telecom (SLT) said that the government would continue retaining the 49.5 percent shareholding of SLT, in answer to a query raised by the Island Financial Review.
The question on the government’s plan for its shareholding in the telecom giant was raised at a press conference yesterday where SLT announced the launch of its fully owned subsidiary SLT Publications Limited (SLTP).
With an initial investment of Rs. 50 million SLTP is commissioned to publish the telephone directories and distribute them free of charge as mandated by the Telecommunication Regulatory Act.
The printing is done in Sri Lanka on imported paper and SLTP does not intend to make profits at the initial stages as the costs involved with printing and distribution would be high. Revenue is expected to be generated through advertising and corporate listings.
Ms Chandrasena said that SLT Publications was incorporated so that SLT could focus on its core businesses of providing telecommunication and data management services.
"Through SLTP we have separated the support service, supply chain and complementary business aspects of directory publication and printing in order to gain operational advantages and productivity gains of our core businesses," she said.
The first issue of the Rainbow Pages was released yesterday. This directory not only carries listings of SLT subscribers but telephone listings of other service providers as well.
Approximately 7,500 corporates had made over 20,000 classified listings in this directory.
A classified listing is priced at Rs. 9000 and upwards and Rs. 26,000 and upwards for a advertising slot which can accommodate corporate logos and other graphics in full colour.
"We have generated about Rs. 75 million in advertising revenue in this issue and we expect future issues to bring in as much as Rs. 300 million," said L. P. M. P. Balapitiya, General Manager, SLTP.
The Rainbow directory is available in printed form, on CD, and is accessible through Mobitel and Dialog via WAP. A dedicated call centre is also in operation to provide operator services.
"We are working with Mobitel to provide directory information on their SIM menu and expect to launch this service soon and extend it to the mobile telecommunication service providers as well," he said.
The vision of SLTP was to cater to the information needs of the more than 10 million telephone (mobile and fixed line) users in the island.
SLTP hopes to diversify its operations into direct mailing services, web based businesses, variable data printing services and advertisement production.
SLTP plans on introducing digital maps for customer location but will be limited to the Colombo city at the initial stage.
Deputy General Manager SLTP Ruwan Wijetunge said that the Rainbow Pages had several innovative features and that the directory held 80 percent of the market share and by 2009 and 2010 would further erode the market share of their competitor (Yellow Pages).
