State telecom TOT Plc says it is ready to take over all operations of fixed-line home and public telephone services in Bangkok and metropolitan areas from its concessionaire True Corporation upon expiry.
The 25-year concession of True's fixed-line phone service is due to end on Oct 26 this year. True has to pay TOT 18% of its total revenue under a revenue-sharing agreement.
TOT has allocated 2.6 million phone numbers for True to operate. But the number of True's fixed-line users is only 1.2 million as the more versatile and affordable mobile service continues to draw users from fixed lines.
True is set to lose its fixed-line service revenue of 2 billion baht annually.
"TOT expects to realise a new revenue stream of 2.8 billion baht per year, based on the calculations of average monthly revenue per fixed-line from 1.2 million subscribers spending 200 baht a month," said Anurut Uthairat, senior executive vice-president for fixed-line business of TOT.
Mr Anurut reiterated that the transition to TOT will run smoothly with no service disruption because the state enterprise has spent months preparing all the requirements for operational procedures -- ranging from billing, back office, maintenance system and call-centre services.
Although the fixed-line market continues to shrink, he said landline services remain essential, especially among corporations and state enterprises.
Mr Anurut said TOT will begin sending letters to True's 1.2 million fixed-line subscribers from July, three months before the concession expiry, to inform them that the state telecom will take over the service from True.
TOT will also inform True customers through its call centre.
He said TOT is about to examine True's fixed-line network assets and equipment before they are transferred to TOT upon the concession's expiry.
TOT operates its own fixed-line business, serving 3.4 million subscribers nationwide.
The state telecom has 1,000 employees responsible for operations related to the fixed-line telephone business.
Mr Anurut said TOT plans to spend 400 million baht this year on maintenance and repair of fixed-line networks across the country.