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Dialog, a unit of Malaysia's Axiata, said its fixed access division, Dialog Broadband Networks (Pvt) Ltd has entered into a deal to buy Sky Television and Radio Network (Pvt) Ltd, a company licensed to operate pay TV services.
The company will be merged after the purchase, allowing Dialog Broadband to use the spectrum for its fourth generation (4G-LTE) services.
Dialog said Sri Lanka's telecom regulator had given the nod for the merger and re-deployment of spectrum for broadband services.
Dialog launched fixed broadband services using a 15MegaHertz frequency block in December 2012. The additional spectrum will allow the company to boost capacity, burst speeds and bandwidth delivered to its customers.
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Originally launched in Colombo, the fixed broadband has since been expanded to Kandy, Jaffna and Galle, the company said.