Telecoms Investment Could Be A Major Driver Of Economic Recovery

[george]

Telecoms could drive Thai economy

Telecoms investment could be a major driver of economic recovery, say executives

BANGKOK: -- The telecom industry is confident that it can drive investment and economic growth during the global crisis, according to participants at the recent NTC International Conference held in Bangkok.

Kongkiat Opaswongkarn, chief executive of Asia Plus Securities, said now was an opportune time for the government to promote escalated investment in telecommunications, particularly third-generation (3G) services.

He said telecoms was an important industry because it was consumer-based with strong performance, enormous investment and good cash flow.

Pornrat Jonejarasakul, vice-president for marketing, analysis and planning of Advanced Info Service, said that AIS last year invested 13 billion baht and would invest 14-15 billion baht this year without 3G. If 3G receives regulatory approval, the company would add 20 billion baht.

Suphakit Vuntanadit, chief commercial officer of True Move, said the crisis was an opportunity for operators because more people will stay at home, thus creating business for broadband internet and pay-TV. Meanwhile, enterprises are cutting costs by depending more on technology.

He forecast a company growth rate of single digits, although revenue and data use by customers was rising sharply.

Pakorn Ponnachet, senior executive vice-president for value-added service at DTAC, noted some changes in consumer behaviour. For example, call times have been shortened from an average of five minutes to just 3-4 minutes.

However, data communications last year almost doubled and value-added service also recorded sharp 40% growth.

-- Bangkok Post 2009-03-09