Court rejects SLT application to prevent Dialog’s fibre network expansion

Aug 01, 2017 (LBO) - The District Court of Colombo has refused applications for enjoining orders sought by Sri Lanka Telecom PLC against Dialog Axiata PLC (DAP) to restrain provision of fixed telecommunication services with fibre network expansion. SLT instituted proceedings against DAP in June to restrain provision of Fixed Telecommunication Services including Gigabit Passive Optical Networks (GPON) Active Solutions operations, lawyers for DAP said.
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Whilst SLT sought to obtain ex parte Enjoining Orders, DAP brought to the notice of Court that SLT had erred in instituting proceedings against the wrong party. A statement from the lawyers added that SLT had misrepresented facts to Court stating that DAP was not entitled to provide or be engaged in GPON Active Solutions operations, when Dialog Broadband Networks (Private) Ltd was entitled to do so. "Accordingly, the case has no impact whatsoever on the GPON-based Fibre Solutions provided by Dialog Broadband." "The action by SLT against DAP to block the lawful provision of GPON Solutions by DBN is monopolistic and anti-competitive, suppressing choice and competition in the provision of the said services." Dialog Broadband has over the past years made large scale investments in cutting edge high speed broadband and other digital infrastructures totaling to over USD 425 Million (over LKR 48,000 Billion). This includes the rapid expansion of its fibre network, connection to the 100G-Plus Bay of Bengal Gateway submarine fibre cable, and the launch of the country’s first-ever Tier-III certified data centre. Meanwhile, Dialog Broadband has filed action against SLT in the District Court of Colombo to restrain SLT from disrupting, undermining, interfering or obstructing in the supply and installation of GPON-based Active Solutions. DAP further stated to Court that the SLT’s case is wrongly constituted and premised upon confidential information belonging to Dialog Broadband namely confidential Request for Proposal, which SLT had unlawfully and wrongfully obtained. The confidential information of Dialog Broadband comprised of comprehensive Network Architecture and Service Delivery Architecture design specifications amongst other confidential information of Dialog Broadband and as such kept secret due to its enormous commercial value. The Court has ordered SLT to disclose the source or person from whom SLT had acquired the confidential information of Dialog Broadband and to show cause as to why the interim injunction restraining SLT from using the confidential information contained in the Request for Proposals should not be granted. In the present case, Honourable Amali Ranaweera – Additional District Judge, Colombo, presided. S.A Parathalingam, President`s Counsel appeared with Chanaka de Silva instructed by G.G Arulpragasam for the Plaintiff, Sri Lanka Telecom PLC. K. Kanag-Isvaran, President`s Counsel, appeared with Avindra Rodrigo, L. Jeyakumar and Nimesha de Silva for the Defendant, Dialog Axiata PLC.