Ailing TOT looks for partnership

[webfact]

Ailing TOT looks for partnership
Usanee Mongkolporn,
Sirivish Toomgum
The Nation

BANGKOK: -- TOT has approached five private major telecom operators about becoming a partner of any of its six core businesses in an effort to stay alive in the industry.

The state enterprise sent letters this week to Advanced Info Service (AIS), Total Access Communication (DTAC), True Corp, Samart Corp and Loxley in line with the policy of its new board to seek strong strategic allies.

Sigve Brekke, interim chief executive officer of DTAC, said yesterday that the company had already received the letter and is evaluating the proposal.

Watchai Vilailuck, president of Samart, also said his company is considering the offer.

A TOT source said TOT has already appointed committees to talk with these five companies on a possible partnership. TOT is open to any joint venture model. It wants to finalise relationships this year.

The TOT source said TOT would also ask the government to help clear legal obstacles to ensure the smooth formation of the partnerships, which might have to be proceeded under the public-private joint venture law.

TOT has to seek help before running into financial difficulties. Both TOT and CAT Telecom began to pass their annual concession revenue, which has been their main revenue source, to state coffers last December as required by the Frequency Allocation Act.

TOT's core businesses are telecom infrastructure, telecommunications towers, international gateway and submarine cables, mobile phone service, telephone and broadband Internet services, and IT services.

TOT lost Bt1.29 billion on revenue of Bt22.6 billion in the first half of this year. It expects a loss of B5 billion this year.

TOT granted AIS' concession, which expires next September.

The state enterprise has partnered with Samart and Loxley to provide 3G wireless broadband service on its 2.1GHz frequency.

The TOT source said DTAC is interested in working with TOT in the broadband Internet business to complement its wireless broadband service. TOT is one of the top three broadband Internet service providers.

AIS is also expected to be keen to join with TOT in providing the 3G service. The largest cellular operator by subscribers is seeking ways to acquire more bandwidth to back up its existing 3G-2.1GHz service,

Source: http://www.nationmultimedia.com/business/Ailing-TOT-looks-for-partnership-30246645.html


-- The Nation 2014-10-31

[Thai at Heart]

How about they just privatise it and get it off the govt books.

What cost structure are they incurring to have costs like this? Crazy

[BSJ]

"TOT lost Bt1.29 billion on revenue of Bt22.6 billion in the first half of this year. It expects a loss of B5 billion this year." In a Western country if they were private they would probably be in voluntary liquidation with an independent management and a thorough audit being done. But being government.....

[Bluespunk]

"TOT has to seek help before running into financial difficulties. Both TOT and CAT Telecom began to pass their annual concession revenue, which has been their main revenue source, to state coffers last December as required by the Frequency Allocation Act.

TOT's core businesses are telecom infrastructure, telecommunications towers, international gateway and submarine cables, mobile phone service, telephone and broadband Internet services, and IT services.

TOT lost Bt1.29 billion on revenue of Bt22.6 billion in the first half of this year. It expects a loss of B5 billion this year."

The first and final 2 sentences would appear to be contradictory.

Edited October 30, 2014 by Bluespunk

[jaltsc]

"TOT lost Bt1.29 billion on revenue of Bt22.6 billion in the first half of this year. It expects a loss of B5 billion this year."

Even with their double billing and attempts to overcharge for for installation, they still lose that much. Maybe they should follow the money trail and find out where it leads. It might be more than their lack of accounting skills that's the real problem.

[lomatopo]

How about they just privatise it and get it off the govt books.

What cost structure are they incurring to have costs like this? Crazy

This (privatisation; IPO, SET listing) was in the plans, and about to be executed circa 2006, but the Junta which deposed the government cancelled these plans.

They, TOT, like most State enterprises are relatively inefficient, lack focus and are run by Junta/Military/Politicians.

They should probably refocus on core networking/transport and jettison everything else.

They should be allowed to auction the spectrum they still hold.

[akampa]

At last I was able to change from TOT to 3BB when we moved to an area that was able to receive 3BB now I pay 100 baht less for the same 10Mbps .

[kinmaew]

Of course no 100% owned Farang companies are invited and I am sure they wouldnt want to anyway doing business with TOT would be like burning money.