SET-listed Ratch Group Plc has announced the acquisition of a 35% stake in Things on Net Co for 180 million baht as the power producer seeks a foothold in the Internet of Things (IoT).
Things on Net is Thailand's sole operator of Sigfox, a connectivity technology using low-power wide area networks.
Sigfox provides network services in over 50 countries.
Chief executive Kijja Sripatthangkura said Ratch is expanding its infrastructure business through IoT, following the company's long-term growth strategy.
IoT is regarded as a fundamental technology for driving the digital economy.
"Ratch has set an investment target for infrastructure and related businesses of more than 20% of total project investment cost," Mr Kijja said.
The joint venture gives Ratch the right to take part in Things on Net's telecom network installation and IoT services in Thailand, he said.
In 2020, Things on Net aims to expand base stations to cover 70% of the country and increase users of Sigfox's IoT technology network to 85% of the Thai population.
"Ratch has considered the complements of the IoT business in broadening its energy and power-related business, as well as fibre-optic cable network," Mr Kijja said. "The IoT business clearly presents a bright opportunity, due to high demand in the industrial sector for production efficiency enhancement, as well as cost and supply chain management in order to increase competitiveness and reduce the risk of technology disruption."
He said the digital economy is encouraging industrial communities to add value through technology, creativity and innovation.