![]() While the merger was made official this week, a full consolidation of the two organizations is expected to last 18 months. If made possible, the agreements with both operators would bolster NT’s service quality and back-office efficiency cementing its vision of becoming a top three mobile operator contender by the end of 2021. Wasting no time, NT has opened talks with Advanced Info Service (AIS) and True Move H Universal Communication (TUC) in hopes of infrastructure sharing on its 700-megahertz spectrum network as well as roaming agreements to make use of the 2600MHz range occupied by the two major operators. Initially, the merger was made possible due to a strong private sector competition, especially within Thailand, with the approach mainly aimed toward reducing costs and streamlining operation however, no staff cuts have been announced. Under the merger, the company has rebranded itself as National Telecom (NT) and will look to capitalize on overlapping administrative staff in departments such as finance, human resources, and legal. ![]() Mr Somkiat is a supporter of the government’s digital economy initiative as a means to push Thailand towards an internet-based economy.īut he said TOT and CAT should not be assigned major roles in handling and managing the planned national broadband project if the state wanted to get the project off the ground.Thailand’s state-owned telecommunications operator TOT has finally completed a long-awaited merger with CAT Telecom, which aims to become one of the top three mobile service provider in the country by the end of the year. The Frequency Allocation Act requires state companies to pass such revenue directly to state coffers. TOT and CAT have not been able to book any revenue related to concessions since last Dec 20. The company expects revenue of 32 billion baht this year.ĬAT envisions a net profit of 1 billion baht on revenue of 49.7 billion this year. TOT is bracing for an operating loss of 4.57 billion baht this year, better than an earlier forecast of 8 billion thanks to improved cost management. They are basic telecommunications infrastructure, telecom towers, wireless broadband service, fixed-line broadband, international internet gateways and submarine cables. ![]() The State Enterprises Policy Commission or superboard has ordered both of them to terminate their unprofitable businesses and focus on six core areas instead. TOT and CAT are operating under a survival plan. Mr Somkiat is opposed to the idea of merging TOT and CAT, saying it would not resolve their ailing financial status. In addition, many executives of the state agencies were promoted as a result of hidden agendas and to serve politicians’ interests. He pointed to the lack of business continuity brought about by frequent changes in the board of directors and management at TOT and CAT. “Any wholly owned state enterprise has already proved a failure when it cannot create a sustainable business model,” Mr Somkiat said. The arrival of new players would also create a new way of playing the game. He said state dilution would open the door to private telecoms, both local and foreign, to help the state enterprises revive their flagging fortunes. “The Finance Ministry stake in both TOT and CAT should be limited to a maximum of 51% in order to end the tradition of political intervention in the financially ailing state enterprises,” TDRI chairman Somkiat Tangkitvanich said. TOT Plc and CAT Telecom are wholly owned by the ministry. The Finance Ministry should reduce its shareholding stake in the two state telecoms and allow participation by private ones, says the Thailand Development Research Institute (TDRI). ![]()
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