True, Tt&t Team Up To Boost Internet Coverage

[george]

True, TT&T team up to boost coverage

Fixed-line caller-ID product launched

BANGKOK: -- Private fixed-line telephone operators True Corporation and TT&T have linked up to expand their basic wired-line communications services into the online non-voice segment, with an aim to create a common, cross-network service platform nationwide.

The two companies, based in the capital and the provinces and boasting a combined total of 4.1 million telephone lines, entered into an initial agreement yesterday which saw the Thailand debut of a new fixed-line caller-ID product.

They also announced a plan to launch a short text-messaging service (SMS) over fixed-line phones in the second quarter of next year.

''The alliance is a great next step for the two parties. It is paving the way for us to create synergies within the groups, including for future broadband business expansion nationwide,'' said Suroj Lamsam, senior vice-president of TT&T for marketing and services.

TT&T, the operator of 1.5 million lines in 72 provinces, is expected to have 15,000 broadband Internet users by the end of this year, compared with 800 since its inception late last year. That figure is expected to jump to 50,000 next year.

True, the operator of 2.6 million lines in Greater Bangkok, expects its total broadband users to reach 200,000 this year.

''What we can join together first is a nationwide broadband expansion scheme, given our existing infrastructure strengths and the advantages created by synergies,'' Mr Suroj said.

TT&T has 1,500-1,600 broadband switching networks in the provinces, with a total capacity to accommodate up to 30,000 Internet broadband portals. True, meanwhile, has a total capacity to cater up to 200,000 broadband users.

Under an initial joint venture plan, TT&T would focus on corporate users in Bangkok.

Mr Suroj, however, said that the nationwide broadband project had yet to reach a clear principal agreement, noting it needs to be studied carefully as it is related to political issues.

Also, TT&T needed some time before making any decision about the broadband project, saying the company is likely to shoulder more extra costs than True given the longer distances for phone line connectivity requirements.

Mr Suroj said a future joint-venture with True for leased-line rental bidding projects in the banking and insurance sectors was also likely to further reduce costs and competition.

A monthly flat-rate tariff service for TT&T and True customers is also likely to be introduced into the market, enabling users to make unlimited calls between the two networks, Mr Suroj said.

According to Phaibul Sirivanij, director and general manager for consumer products of True Corporation, the company expects 10,000 customers to sign up for the new caller-ID services, bringing its total usership to 60,000 by next year.

TT&T, meanwhile, expects the new service will add 50,000 caller-ID users during the 2.5-month promotional campaign, up from 300,000 currently.

TT&T pays 18% of its total caller-ID service revenue to TOT Corporation while True pays 16%.

True shares closed yesterday at 6.80 baht, down five satang, in trade worth 399.5 million baht, while TT&T closed at 4.02, down six satang, in trade worth 84 million baht.

--Bangkok Post 2004-11-17