Tt&t Announces Broadband Expansion Plans

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http://www.bangkokpost.com/Business/22Nov2005_biz51.php

COMMUNICATION / PROVINCIAL OPERATOR DIVERSIFIES

B3.5bn for broadband and data

SRISAMORN PHOOSUPHANUSORN

The provincial fixed-line telephone provider TT&T has earmarked up to 3.5 billion baht to for broadband network and data transmission infrastructure over the next 18 months as part of the strategic plan to shift its business focus to wireless multimedia services. Up to two billion baht would be allocated for broadband infrastructure and the rest for data and value-added services expansion.

``The move is in line with our policy of diversifying from declining fixed-line service into the booming broadband and wireless multimedia businesses, with the goal of having our broadband revenue proportion reach 50% by 2008,'' said Prasitchai Kritsanayunyong, senior vice-president for corporate finance.

He said TT&T expected to use internal cash from operating revenue to finance the expansion. ``We expect to post 7.3 billion baht in revenues in 2006, up from an expected 6.8 billion baht this year.''

However, Mr Prasitchai said, TT&T was likely to continue facing losses this year. He cited the price war with mobile-phone operators, increased marketing expenses and operating expenses from repairs and maintenance as a result of heavy floods in the northern provinces early this year.

TT&T reported a net loss of 417 million baht on revenues of 1.544 billion baht in the third quarter of this year. It has 23.6 billion in debts.

Fixed-line revenue accounted for 48% of all revenue, down from 53% in the same period last year, while broadband contributed 25%.

``We expect to reach break even point by 2008 when our broadband customer base could top 300,000 at the time,'' Mr Prasitchai said.

He said the expansion projects would be carried out under new subsidiaries: TT&T SS Co, TT&T Co and Triple T Broadband Co.

TT&T had also applied for a type-3 operating licence, mandatory for an operator with its own network for rent or to provide its own services, with the National Telecommunications Commission (NTC). The licence would enable it to operate 3G mobile phone services.

TT&T currently has 1.24 million fixed-line customers, with 200,000 using data services and average revenue per user of 300 baht per month. It has 50,000 broadband users, and the figure is projected to reach 80,000 by the end of the year.

``We expect to see over 100,000 broadband customers next year, and 300,000 by 2008,'' he said.

TT&T shares closed yesterday on the Stock Exchange of Thailand at 2.76 baht, down four satang, in trade worth 24.42 million baht.

[meadish_sweetball]

Anyone using TT&T ADSL in Chiang Mai? What is the service like in terms of speed, reliability and customer service?