Price Competition

April 12, 2008 (LBO) – Sri Lanka's Electroteks which is to operate the island's sixth mobile telephony firm with India's Reliance says it will be offering stiff price competition to existing players. Updated Electroteks is to tie up with India's Reliance Communications (RCom) to start mobile services.

Electroteks chief B A C Abeywardene says the mobile firm would offer prices around 1 rupee to 1 rupee and fifty cents cheaper than existing operators.

The firm was also planning to cut international charges by 25 percent and offer broadband services 50 percent cheaper than competition Abeywardene said.

Electroteks had received spectrum to start the island's sixth mobile operator last month, he said.

The mobile operation would eventually see about 350 million dollars being invested.

Electroteks already runs a data network in Sri Lanka and a broadcast free-to-air television service.

India's Bharti Airtel which got the island's fifth mobile license through an open bidding process was to have launched services in March. It has been now delayed to September.

But Electroteks already has a tower network in the country and is familiar with the cumbersome process of ge

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