Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...
Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...
Dialog Axiata PLC | Annual Report 2010 D ia lo g A x ia ta P L C | A ...
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Taxation<strong>D<strong>ia</strong><strong>lo</strong>g</strong> has been granted flagship investor s<strong>ta</strong>tus by the Board of Investment (BOI) ofSri Lanka, by virtue of the quantum of inward infrastructure investments made by <strong>Ax<strong>ia</strong><strong>ta</strong></strong>Group. The terms of the Flagship Investor Agreement bestow a 15-year <strong>ta</strong>x exemptionperiod on the Company, which terminates in 2012. Upon the expiry of the <strong>ta</strong>x holiday,for 15 years to fol<strong>lo</strong>w, the Company would be l<strong>ia</strong>ble to pay corporate <strong>ta</strong>x, either at aconcessionary rate of 2% on revenue, or at the prevailing corporate <strong>ta</strong>x rate. The Companywill be required to select its preferred option at the end of the <strong>ta</strong>x holiday in 2012. <strong>D<strong>ia</strong><strong>lo</strong>g</strong>however, is l<strong>ia</strong>ble to pay <strong>ta</strong>xes on interest earnings on Rupee deposits and is also subject tothe Economic Service Charge (ESC) of 0.25% since January 2005.The increase in <strong>ta</strong>xation in <strong>2010</strong> is mainly due to the <strong>lo</strong>wer income <strong>ta</strong>x provision in 2009.<strong>D<strong>ia</strong><strong>lo</strong>g</strong> Broadband Networks –Business Overview & Financ<strong>ia</strong>l ReviewDBN is a key player in the Fixed Telecommunication space with a product portfoliospanning Broadband internet, fixed telephony, da<strong>ta</strong> networks and converged ICTsolutions including IPVPN, VoIP and Hosted PABX offerings. DBNs transmission and da<strong>ta</strong>communication network spans across all provinces of Sri Lanka enabling the Company tobe a forerunner in fixed da<strong>ta</strong> and voice connectivity.During the course of <strong>2010</strong>, Fixed Broadband internet, powered by WiMAX techno<strong>lo</strong>gywas extended to all 25 districts of the country. DBN also provides fixed wireless telephonyservices through CDMA techno<strong>lo</strong>gy. Broadband and converged product sales continued togrow in <strong>2010</strong>. DBN’s CDMA subscriber base grew by 7% to reach 189,000. Da<strong>ta</strong> solutionsrecorded growth in excess of 16% during the year.DBN Financ<strong>ia</strong>l ReviewRevenueDBN recorded a revenue of Rs. 2.36 Bn. in <strong>2010</strong>, up 1% relative to 2009. Increase inrevenue was marginal mainly due to the reduction in transmission revenue and connectionfees. YoY drop in connection fees on acquisition of new CDMA subscribers was due toBusiness & Financ<strong>ia</strong>l Review<strong>D<strong>ia</strong><strong>lo</strong>g</strong> <strong>Ax<strong>ia</strong><strong>ta</strong></strong> <strong>PLC</strong>| <strong>Annual</strong> <strong>Report</strong> <strong>2010</strong>31
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