TOT sets B20m 3G budget

TOT sets B20m 3G budget

Private partnership to revive ailing service

State-owned TOT seeks to promote its fixed-line and mobile broadband services. It is looking for private partners in order to improve its competitiveness. (Photo by Weerawong Wongpreedee)
State-owned TOT seeks to promote its fixed-line and mobile broadband services. It is looking for private partners in order to improve its competitiveness. (Photo by Weerawong Wongpreedee)

TOT Plc plans to spend 20 million baht to revive its struggling third-generation (3G) mobile broadband service this year and prepare for a private partnership model.

The cost is part of the state telecom enterprise’s 60-million-baht marketing budget for promoting fixed-line and mobile broadband services.

“Fixed and mobile broadband businesses will potentially be our two core revenue sources in the near future,” said Rungsun Channarukul, senior executive vice-president for marketing.

Although 3G service generated just 5% of TOT’s revenue of 29 billion baht last year, the business looks promising after it entered a partnership deal with prospective partners in August, he said.

Fixed broadband contributed 37% of last year’s total revenue, Mr Rungsun said.

TOT operates 3G service on the 2100-MHz spectrum with 5,320 base stations nationwide.

It has 800,000 subscribers, most of them through Samart Corporation’s subsidiary Samart I-Mobile under the mobile virtual network operator model. An MVNO is a mobile operator that operates service on behalf of a telecom network’s owner.

Earlier this year, TOT invited private companies interested in partnering with the state enterprise to submit proposals.

Five companies submitted proposals: TOT’s fixed-line concessionaire True Corporation; TOT’s 2G concessionaire Advanced Info Service (AIS); Loxley Wireless, a subsidiary of Loxley Plc; Mobile LTE Co; and Samart Corporation.

TOT is on the verge of making a final decision on qualified strategic partners in August.

A TOT source who asked not to be named said TOT might choose two companies: AIS and one other partner.

Mr Rungsun said AIS had proposed to partner with TOT in almost all businesses, ranging from mobile service to telecom infrastructure leasing.

AIS wants to jointly manage TOT’s telecom towers after the concession expiry, as the infrastructure is now run by the company under a concession due to expire in September. AIS, via subsidiary AWN Co, also wants to lease TOT’s 3G wireless broadband network and provide its own 3G service.

Mr Rungsun said having private partners could add value to the state’s existing telecom infrastructure assets and enhance the effectiveness of business development.

“We aim for our mobile subscriber base to surge to 3 to 4 million over the next two years, up from 800,000 now,” he said.

Fixed-line broadband is forecast to generate revenue of 11 billion baht this year. TOT has 1.6 million fixed-line broadband subscribers, with 85% on the ADSL network and 15% on fibre-to-the-home infrastructure.

“We expect to have 150,000 new fixed broadband subscribers this year,” Mr Rungsun said.

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