New Cat Telecom Network Investment Is Part Of 'strong Thailand'

[george]

New CAT network investment is part of 'Strong Thailand'

BANGKOK: -- CAT Telecom will spend more than Bt12 billion on three communications networks over the next three years as part of the government's stimulus programme.

Acting CEO Sompol Chanprasert said the state enterprise would use its own funds to develop cellular, broadband-Internet and submarine-cable networks.

As part of the "Strong Thailand" programme, these projects will receive government priority and fast-track approval.

CAT will use its 2010-12 budgets for these projects, which await approval of the Information and Communications Technology Ministry, the National Economic and Social Development Board and the Cabinet.

The government has earmarked Bt1.43 trillion for public investment from 2009-12 in a bid to stimulate growth following the global economic crisis.

Of the Bt1.43 trillion, projects worth a combined Bt1.06 trillion are ready to be implemented.

State agencies like CAT Telecom are now required to submit details of their investment projects for government approval.

A government breakdown shows Bt1.11 trillion will be spent by the government via annual expenditure budgets and borrowings over the next three years, while the remaining Bt321 billion will come from state enterprises using their own budgets or borrowings.

CAT's first project will be to expand its Code Division Multiple Access (CDMA) 2000 1-x cellular network in 51 provinces by adding another 500 base stations to the existing 1,600.

The Bt3.8-billion project will boost network coverage to 90 per cent of the population in the 51 provinces, from 80 per cent now.

The project is expected to be completed 27 months after network procurement, then break even in six years and four months with an internal rate of return (IRR) of 14.5 per cent.

CAT will also spend Bt817 million to install indoor CDMA base stations, but this project is not involved with the "Strong Thailand" scheme.

The second project will deploy 400,000 broadband-Internet service ports on the fibre network in Bangkok. The Bt6-billion project is expected to yield an IRR of 15 per cent and break even in five years and one month.

CAT will also spend Bt2.5 billion to lay a submarine cable to serve as a communications network for 11 Chevron drilling rigs and three PTT rigs in the Gulf of Thailand.

CAT is in talks with both companies on the possible rates both would pay to CAT for leasing the network, Sompol added.

Meanwhile, Finance Minister Korn Chatikavanij yesterday said the government's tax collection would return to normal late this year, which would result in a tax-revenue shortfall for fiscal 2009 of only Bt170 billion, against an earlier forecast of more than Bt200 billion. Tax revenue has shown signs of improvement in the past three or four months.

The ministry expects to achieve its target of collecting Bt1.35 trillion in tax revenue in fiscal 2010, against expenses of Bt1.7 trillion. Korn insisted a balanced budget would resume in 2015.

-- The Nation 2009-09-04