TOT Plc's labour union has made an abrupt reversal on its decision to oppose the government's plans to partly consolidate similar core businesses of TOT and CAT Telecom, ending months of uncertainty over the planned development of the two state telecom enterprises.
"We decided to drop our opposition to the asset consolidation plans as it would do both state telecom enterprises more harm than good if the union continued to move against the state's plans," Anuchit Thoopluang, vice-president of the TOT labour union, told the Bangkok Post.
The resolution came last Friday after a discussion involving representatives of the labour union, he said.
TOT has 15,000 employees, 11,000 of whom are members of its labour union.
The union last week threatened to rally employees nationwide at TOT headquarters on Chaeng Watthana Road and hold a walkout to protest against the consolidation move.
Mr Anuchit said he will submit an official letter Tuesday to Prime Minister Gen Prayut Chan-o-cha in support of the asset consolidation plans.
He acknowledged that TOT and CAT have been hit hard by rapid changes in the telecom sector in the post-concession era.
"We must embrace discomfort on the journey to change," he said.
But Mr Anuchit said the letter of support will ask the government to comply with the union's requirements. First, the state will not lay off permanent staff of TOT or CAT.
Second, the union should have the right to observe and monitor the consolidation process to ensure transparency.
Third, after the asset consolidation is completed, the government should allow other state enterprises to use or rent TOT's digital infrastructure under the state's digital economy development project in order to generate revenue to it.
The State Enterprise Policy Commission or superboard recently approved in principle proposals for the consolidation of three core businesses: transmission and fibre-optics networks; submarine cable networks; and data centres, submitted by the boards of TOT and CAT.
There will only be three business combinations, with the other core areas (including fixed-line broadband internet, mobile phones and telecom towers and network rental services) remaining untouched, according to the superboard.
TOT and CAT might have to form separate joint ventures to manage and operate the combined businesses.
A resolution on the establishment of joint ventures will be settled by the Information and Communication Technology (ICT) Minister this year.
Mr Anuchit said he agreed that the three core businesses can generate stable and sustainable revenue streams for TOT and CAT. The unprofitable business areas would focus on providing public telecom services.
ICT Minister Uttama Savanayana said the consolidation is aimed at eliminating duplicate investments and keeping up with a changing marketplace.
He said he was pleased to hear that the union understood and accepted the state's intention.
TOT and CAT are operating under a survival plan focusing on core businesses and terminating businesses that do not make a profit.
Mr Uttama said both TOT and CAT must quickly adjust their organisational and business structures in order to generate new revenue streams to survive. He also insisted there will be no merger between the two.
TOT has 15,000 employees, while CAT has almost 6,000.
