Author Topic: TOT ordered to draw up new 3G plan  (Read 548 times)

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Offline thaiga

TOT ordered to draw up new 3G plan
« on: May 15, 2012, 03:07:08 PM »
The Nation
Information and Communications Technology (ICT) Minister Anudith Nakornthap yesterday ordered TOT Corp to revise its 3G business plan in an effort to halt its financial losses.
At a hastily arranged meeting, Anudith told TOT's board to submit a new plan within four days to a committee of the State Enterprise Policy Office. The committee is scheduled to meet on FridayMay 18.

"TOT has only one-twelfth the forecast 2.5 million subscribers. If we let TOT stick with the old plan, we will see huge losses," Anudith said.

TOT has attracted about 200,000 3G customers since launching the service in December 2009.

Anudith blamed the problem on the previous government, which cut TOT's 3G investment budget from Bt29 billion to Bt16 billion.

TOT initially aimed to have around 5,200 base stations completed by the end of this month, but only 2,000 base stations have been completed.

TOT expects to generate 3G service revenue of Bt718.24 million this year, far below its target of Bt2.59 billion. Next year TOT targets Bt7.42 billion. If it falls short of that, it will be unable to service its bank loans.

Last May, TOT secured a Bt14.71-billion loan from a consortium led by Bank of Ayudhya and United Overseas Bank (Thai) to finance the 3G project. It has pinned its hopes on the project as its new revenue stream. It reportedly has to use its cash flow to repay the loan.

TOT's 3G revenue is also unlikely to be enough to cover loan expenses next month, which indicates that it is expected to fail to reach the target for 3G SIM-card sales.
Anyone who goes to a psychiatrist should have his head examined.
 

 



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