TOT drafts iPSTAR plans

Revenue of B3.6bn targeted in three years

BANGKOK: -- TOT Plc plans to launch a new satellite business plan in support of its collaboration with Shin Satellite, with the aim of generating more than 3.6 billion baht a year over the next three years.

The business plan, called the TOT Satellite, will be forwarded to the TOT board for approval next week.

TOT president Teerawit Charuwat said the plan was worked out after Shin Satellite appointed TOT as the national service operator and provider soon after the launch of Shin Satellite's iPSTAR into orbit on Aug 11.

TOT Satellite, touted to become a new major source of revenue for TOT, comprises three business areas: the satellite for USO (universal service obligation), a vertical project, and retail multimedia broadband (RMB).

Under the satellite for USO scheme, TOT will replace 18,812 of its existing small satellite-based long-distance public telephone lines and 40,000 dial-up modem and IP-share points of service at 17,000 rural schools, 9,000 tambon administration organisations, and 14,000 health stations located in communities nationwide.

In addition, the Satellite for USO will serve 20,000 public telephone lines and 30,000 numbers in areas where the wired network is inaccessible, he said.

The vertical project will involve the sale of bandwidth to a number of service providers including Samart, state agencies and commercial banks. It will also serve the satellite-based remote education programme.

The retail multimedia broadband business will commercially provide broadband Internet, leased line and backup services to the public.

Mr Teerawit said that the entire project was expected to help TOT save two billion baht a year _ 1.7 billion on the public-telephone service, and 300 million baht on backup connections.

He said that in the first year after the launch of TOT Satellite, TOT expected to generate 2.1 million baht from USO, 50.28 million from the vertical project, and 19.65 million baht from retail multimedia broadband service.

By 2007, the revenue from these operations is projected to increase to 258, 959 and 1,533 million baht respectively.

By 2008, total revenue would jump to over 3.6 billion baht a year _ 313 million baht from USO, 1.4 billion baht from the vertical project, and 1.9 billion baht from retail multimedia broadband.

--Bangkok Post 2005-09-06

hmmm... Why does a public organisation like TOT making deals with Shin Corp make me suspicious..