CAT Telecom Defends True Deals

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CAT defends True deals

By USANEE MONGKOLPORN

THE NATION

CAT Telecom chief executive officer Jirayuth Rungsrithong yesterday said the CAT-True Group deals would generate total revenue of at least Bt770 billion and profits of Bt84 billion for the two firms during their 14 and a half years of collaboration.

Jirayuth said True's subsidiaries Real Move and Real Future would earn a combined profit of Bt51 billion during the period, while CAT would have a profit of Bt33 billion. Both True subsidiaries would have combined revenue of Bt500 billion, while that of CAT would be Bt270 billion.

His remarks appear to defend the deals after the main opposition party accused Information and Communications Technology Minister Chuti Krairiksh in the censure debate on Wednesday of favouring True at the expense of the state. Chuti denied the charge, saying the deals were developed according to the relevant law and regulations.

CAT granted deals to Real Move and Real Future on January 27 for joint development of the third-generation HSPA (high-speed packet access) wireless-telecom business.

CAT will lease equipment from BFKT of Real Future for 14 and a half years to wholesale the HSPA service capacity, mostly to Real Move to resell the service for 14 and a half years. CAT will also resell the service to tap corporate customers.

CAT expects the HSPA service to have 5 million subscribers in the first three years before rising to 30 million in 14 and a half years. The retail HSPA service in the part operated by CAT is expected to have 20 per cent of 30 million subscribers.

Real Move is expected to launch the retail HSPA service in April, followed by CAT in June. HSPA technology is considered superior to the older CDMA (code division multiple access) for broadband applications. Jirayuth said CAT was expected to spend Bt10 billion on developing the HSPA business.

The deals drew questions from many parties, especially whether they complied with the 1992 Public-Private Joint Venture Act. Some state agencies are probing the legality of the deals.

-- The Nation 2011-03-19

[KarstenBoAndersen]

Do they think they can get 50% of all Thais as customers ?

That is the most stupid forecast i ever had seen !

It just say some about Thai telecom industri, they live up on a blue sky !

Just get some 3 G in the air instead of sitting dreaming !