CAT positions for digital advantage
State enterprise CAT Telecom plans to scale up its digital business in 2019 as stronger revenue streams emerge, capitalising on the digital transformation of its enterprises.
The company wants to position itself as a digital service provider, an initiative it started this year. The digital business includes solutions for the Internet of Things (IoT), big data, and cybersecurity, says CAT president Col Sanpachai Huvanandana.
CAT aims to provide digital solutions to state agencies for the implementation of policies in line with the Thailand 4.0 model.
In November, CAT recorded 58 billion baht in total revenue and had 45 billion in expenses. Net profit for the 11 months this year was 13 billion baht.
The company expects to maintain its market share and growth rate in both mobile and internet services, he said.
CAT encourages all government agencies to implement new technology in data management. In the near future, all governmental units that adopt digital solutions must improve cybersecurity measures, said Col Sanpachai.
"We are preparing to provide these solutions to all state agencies in their digital adoption efforts," he said.
CAT has committed to doubling revenue from digital business from 1.1 billion baht last year to 2.2 billion baht by 2020 thanks as the country develops digital transformation, especially the government's digital innovative park project, which is being developed under the Eastern Economic Corridor (EEC) roadmap.
CAT's digital business comprises cloud computing services, cybersecurity, and e-businesses.
Although digital services comprise a small fraction of CAT's total revenue, only 4% of 43 billion baht in 2017, the digital business is growing more than 30% per year.
CAT plans to partner with global players in digital business sectors and even cross-industry partners in a drive to ensure sustainable growth of innovative digital services.
"One core strength of our digital business is as a trusted service provider for operations of all state agencies and enterprises," he said.
CAT hopes its digital service will generate 8-10% of total revenue by 2020.
Col Sanpachai said cloud services have potential for CAT digital services as demand grows for big data management systems among enterprises that want to do business efficiently as well as to set up preventive maintenance against operation errors.
CAT has a data centre service in seven major provinces nationwide, combining more than 1,000 racks of servers that operate data centre services on 250 square metres of space.
CAT started providing cloud computing services in 2012 under the IRIS Cloud brand of the Intelligent Resilient Information System.
CAT ranked the second largest provider of cloud services in the domestic market, valued of worth 3 billion baht in 2016 after Internet Thailand Co.
The domestic market value of cloud computing services has grown in the double-digits for four consecutive years due to increasing usage demand that sees considerable year-on-year rise.
Regarding Digital Park Thailand in Chon Buri's Sri Racha district that will be developed on property owned by CAT, Col Sanpachai said the project will play a crucial role in producing IT personnel in Thailand by developing knowledge in manufacturing new technology and innovation for the EEC and the rest of the country through public hearings and market sounding via public private partnership.
The terms of reference for Digital Park Thailand will soon be available. The selection process for private investors is expected to be at the beginning of 2019.