DPC leases network to parent AIS
The Nation (11 October 2007)
The 1,800-megahertz cellular operator Digital Phone (DPC) has adjusted its role by leasing its network to parent Advanced Info Service (AIS). AIS chief executive Vikrom Sripataks said DPC wanted to avoid high operating costs and fierce cellular-market competition. But it will continue to provide cellular service to its existing 50,000 subscribers, all of whom are post-paid phone users. He said each time subscribers cancelled the service, DPC would return their phone numbers to its concession owner, CAT Telecom. "CAT does not oppose the move, since it still gains a revenue share from DPC," Vikrom said. One of DPC's main expenses is the annual access charge it has had to pay to TOT for connecting different networks via TOT's facilities. AIS, with more than 23 million subscribers, is in need of additional cellular frequency to ease the congestion of its existing 900MHz cellular frequency. In a separate matter, Vikrom said AIS and TOT were in talks on the state agency's plan to take over broadband-Internet service provider Advanced Datanetwork Communication (ADC), in which AIS owns 51 per cent and TOT 49 per cent. Initially, AIS proposed acquiring all of TOT's shares in ADC before TOT made a counterproposal that it wanted to take over ADC. Vikrom said ADC's total asset value was about Bt300 million and that AIS was willing to sell shares to TOT if the state agency offered a reasonable price. AIS owns Super Broadband Network Co, which holds a licence from the National Telecommunications Commission to offer broadband service. It provides wholesale broadband-network leasing services. "We can have Super Broadband offer both wholesale and retail broadband-Internet service if need be," Vikrom said. Super Broadband, which is capitalised at Bt1 million, has planned to spend Bt3.827 billion throughout the 25-year licence period. It will raise Bt450 million in capital in the first year, when it will also borrow Bt690 million to run the business. The company expects cash flow of Bt2.687 billion in the first year.
The Nation (11 October 2007)
The 1,800-megahertz cellular operator Digital Phone (DPC) has adjusted its role by leasing its network to parent Advanced Info Service (AIS). AIS chief executive Vikrom Sripataks said DPC wanted to avoid high operating costs and fierce cellular-market competition. But it will continue to provide cellular service to its existing 50,000 subscribers, all of whom are post-paid phone users. He said each time subscribers cancelled the service, DPC would return their phone numbers to its concession owner, CAT Telecom. "CAT does not oppose the move, since it still gains a revenue share from DPC," Vikrom said. One of DPC's main expenses is the annual access charge it has had to pay to TOT for connecting different networks via TOT's facilities. AIS, with more than 23 million subscribers, is in need of additional cellular frequency to ease the congestion of its existing 900MHz cellular frequency. In a separate matter, Vikrom said AIS and TOT were in talks on the state agency's plan to take over broadband-Internet service provider Advanced Datanetwork Communication (ADC), in which AIS owns 51 per cent and TOT 49 per cent. Initially, AIS proposed acquiring all of TOT's shares in ADC before TOT made a counterproposal that it wanted to take over ADC. Vikrom said ADC's total asset value was about Bt300 million and that AIS was willing to sell shares to TOT if the state agency offered a reasonable price. AIS owns Super Broadband Network Co, which holds a licence from the National Telecommunications Commission to offer broadband service. It provides wholesale broadband-network leasing services. "We can have Super Broadband offer both wholesale and retail broadband-Internet service if need be," Vikrom said. Super Broadband, which is capitalised at Bt1 million, has planned to spend Bt3.827 billion throughout the 25-year licence period. It will raise Bt450 million in capital in the first year, when it will also borrow Bt690 million to run the business. The company expects cash flow of Bt2.687 billion in the first year.
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