MARKET
Deregulation levels the playing field. It also acts as a catalyst in a marketplace, once innovation takes over and competition rules. The telecommunications sector in Sri Lanka was a monopoly for many years, like many other essential services in the country. But unlike other utilities such as water or electricity, telecommunications doesn’t deliver just one service – voice and data create new industries. As such, deregulation in the late 1990s resulted in the country’s largest privatisation initiative. This marked the beginning of the telecom boom in Sri Lanka, preceding the country’s entry into the information society.
Telephone penetration had been at an all-time low when telecommunications was a state-run enterprise. But between 1997 and 1999, fixed telephone lines soon increased by 84% and wireless phones entered the market, taking it by storm. Today, Sri Lanka has one of the most liberalised telecom industries in South Asia, with three fixed and Wireless Local Loop operators, four mobile-phone companies and five public-phone operators.
When it comes to teledensity, surprisingly, only 6% of the population have a fixed-line phone connection, most of whom are residential users. The penetration of telephones in the Colombo District alone accounts for 50% of total phones, with Kandy and Gampaha representing a mere 9% and other areas accounting for less than 5%.
The biggest barrier to telephone penetration in Sri Lanka has been the high cost of investment (which includes connections and tariffs), making it unattractive for both consumers and operators.
But the recent launch of CDMA technology has paved the way for market expansion, with a low barrier for entry. In fact, the CDMA market is expected to grow beyond 600,000 subscribers by December 2006. While awareness among the public has increased on the one hand, stiff competition also makes it increasingly important for service providers to become active and aggressive. As far as the public is concerned, there now seems to be a preference for purchasing a fixed line.
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ACHIEVEMENTS
Suntel is committed to superior service, innovation and quality – it has set benchmarks for service excellence in the telecommunications industry for many years. Suntel’s first customer was connected within seven days, at a time when the waiting period to obtain a phone line in Sri Lanka was nearly seven years! Since then, Suntel has introduced a portfolio of products and services that not only have been the first of their kind in Sri Lanka, but have also revolutionised the telecom market in Sri Lanka.
Suntel was the first telecom operator to introduce new technologies such as digital, ISDN and multiparty video-conferencing at the Infotel ’97 telecom exhibition.
In July 2000, Suntel was awarded the prestigious ISO 9001:2000 certificate for its commitment to deliver world-class quality and service. It was the first fixed-line telecom company in the country to obtain this certification. With the roll-out of CDMA, within a span of five months, Suntel added 100,000 subscribers to its customer base, to become Sri Lanka’s second-largest telecom operator.
Among Suntel’s other achievements are its policy of IDD-enabling all its phones; becoming the official internet and telecom partner at ASOCIO 2004, a premier event inthe region for the IT industry; and launching the first CDMA network. It also pioneered the first rental-free fixed prepaid service in the country.
In terms of growth, Suntel has expanded its territory to own the largest CDMA network in Sri Lanka, with a reach of over 200,000 subscribers. In terms of revenue, Suntel has grown almost 70% per annum on average.
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HISTORY
In February 1996, Suntel obtained a licence to build and operate its own telecommunications network, which it set up in partnership with Ericsson. Suntel is a joint-venture company that brings together the resources and expertise of the Swedish telecom giant Overseas Telecom AB, Metrocorp, Townsend of Hong Kong, National Development Bank and the International Finance Corporation (the financing arm of The World Bank). A combination of technical and operational expertise, supported by a sound financial base, has helped create a company that is committed to being Sri Lanka’s preferred telecommunications service provider through service excellence and cost-effective delivery.
Suntel officially launched its operations in December 1996. In February the next year, it commissioned a second telecom exchange in Colombo, followed by a third in Kandy, to cater to a rapidly expanding customer base.
It then went on to introduce the concept of corporate account management, under which it designed and implemented corporate solutions for some of Sri Lanka’s leading blue-chip companies, academic institutions and a number of small and medium-size enterprises.
In November 2000, Suntel’s debenture issue was over-subscribed, thereby affirming the confidence placed in the company by its customers and investors alike.
Suntel’s standing as Sri Lanka’s second-largest national telecom operator was re-confirmed when it fulfilled the licensing conditions stipulated by the government of Sri Lanka.
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PRODUCT
Suntel provides a comprehensive range of voice, data, ISDN, VPN and internet services to corporate, business and residential customers.
Its voice services offer a number of features that both corporate clients with complex multiple needs and individuals with much simpler demands can choose from. These include a basic phone connection for voice, fax and internet access; and complex corporate solutions to enhance the effectiveness, efficiency and competitive edge of an organisation. These integrated corporate solutions deliver voice, data and video services, whilst also offering service and cost advantages. The IP and ISDN services provide end-to-end digital connectivity to support a wide range of services, including voice, data and image transmissions simultaneously.
Offering speed, reliability and cost efficiency, Suntel’s data services provide businesses with the latest in data communications. Suntel introduced CDMA to fixed-line communications in July 2005. In less than a year, it became the largest and fastest growing CDMA network in the country, thanks to a quality product offering and the widest service network. Suntel has now garnered a 35% share of the CDMA subscriber base in Sri Lanka.
Suntel wOw, its internet service, brought a new meaning to connectivity, browsing and downloading from the internet. Suntel wOw offers dial-up and ISDN internet access, dedicated leased lines, global email access and a host of other supplementary services.
And Suntel’s portal (www.wow.lk) brings news, information and entertainment together, to make it a hip destination for cyber addicts. Some of the portal’s offerings – such as free SMS to mobile phones, free downloads, a web directory, classifieds and regular cricket updates – have attracted 45 million hits, making it the most visited portal in Sri Lanka.
Some of Suntel’s unique value-added services include 1414: by simply dialling 1414 from any Suntel line, subscribers can access the latest news updates, listen to jokes, greet loved ones, obtain cricket updates, refer to recipes and so on.
And that’s not all! Suntel’s services come bundled in packages, so that customers can pick what suits them best.
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RECENT DEVELOPMENT
In May 2001, Suntel launched its own ISP – Suntel wOw. It introduced IP VPN in September 2002. A new unique offering, Suntel wOw 123, now allows automatic internet access on Suntel lines. Since Suntel lines are internet-enabled, subscribers 
can simply connect a Suntel phone to a PC and access the internet.
And with the new Suntel wOw prepaid card, subscribers can now pay for internet usage at their convenience. Suntel also introduced WiFi to Sri Lanka, enabling users to go online at popular venues, via Suntel’s WiFi hotspots.
Suntel’s high level of service is widely regarded as the best in the business in terms of connectivity, rapid response, customer service and the lowest number of faults (Source: TRC reports – Quality of Service Indicators for Fixed Operators, January 2003).
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PROMOTION
Suntel broke into the Sri Lankan market with a bang. As the first private fixed-line service provider, its launch campaign focused on building trust for the brand. The Forever corporate campaign addressed specific attributes of Suntel’s service: Forever Reliable; Forever Fast; Forever Responsive. It focused on how its service was superior to what the existing telecom service provider was offering and it educated people on the benefits they could derive from a new service provider. Undoubtedly, brand Suntel was welcomed with great enthusiasm by the Sri Lankan public. This was followed by a campaign – Suntel Coverage – about it being the fastest growing network in Sri Lanka.
International Direct Dialling (IDD) helped Suntel expand its customer base. This was followed by a loyalty campaign to maintain its strength.
The change in phone numbers to ten-digit numbers created a new opportunity, and Suntel reinforced its customer-oriented stance through an awareness campaign. It explained the change, taking customers through the process using direct mailers, monthly invoices, tariff cards and handouts.
In 2004, Suntel undertook a major network expansion into smaller towns in the northern and eastern provinces of Sri Lanka. This campaign focused on its unmatched service and technology, differentiating Suntel and setting very high standards.
In launching its internet service, Suntel wOw, the young, hip and energetic theme – the web as you’ve never known it – focussed on convenience, speed, bandwidth and superior service. The campaign brought in a record number of subscribers within a short time. The campaign won Bronze, Silver and Gold in the magazine, print and TV categories respectively, and it was judged Campaign of the Year 2004 at the SLIM Advertising Awards.
Suntel’s successful Off-The-Shelf CDMA campaign clearly outlined the benefits of CDMA to customers. Within two months, Suntel’s subscriber base exceeded projections – every phone on the shelf was sold!
Its most recent campaign focused on the brand’s belief in connecting people anywhere in the country – a strategy which encompasses emotion and appeals to everyone who wants to be in touch in Sri Lanka.
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BRAND VALUES
Brand Suntel stands for innovation, superior technology and unmatched service. Suntel is perceived as being professional and innovative, with service that is second to none.
Its 1998 positioning – your telecom partner for life – emphasised the underlying values of reliability and innovation. Today, Suntel is seen as offering cutting-edge technology, and as a national telecom provider that provides superior value to its subscribers.
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THINGS YOU DONT KNOW ABOUT Suntel
♥ Suntel’s 24-hour hotline responds in less than fifteen seconds to service and billing inquiries.
♥ Individual telephone connections are simply provided off the shelf to customers.
♥ Suntel wOw is the highest-visited Web portal, with over 38 million hits a month.
♥ The World Bank invested in Suntel through the International Finance Corporation.
♥ Soon after the tsunami of 2004, Suntel set up a Relief Trust Fund that accumulated the largest quantum of funds by any corporate enterprise in Sri Lanka.
♥ Suntel is the only fixed line operator who offers instant internet connectivity with every phone line – via Suntel wOw 123.
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www.suntel.lk
