CAT set to introduce its own two-SIM-card handset brand

Bangkok Post (13 November 2007)

CAT Telecom is diversifying into the mobile-handset market by producing its own ''CAT Phone'' brand equipped with two SIM cards, in an effort to offset its plunging core international direct dialling (IDD) revenue.

The state telecom enterprise is also preparing to tap into the fast-growing broadband power line business as another new revenue source.

Piriya Siriboon, a board spokesman, said the CAT Phone featured SIM cards for the CDMA and GSM mobile systems, enabling users to automatically switch to the system with the best signal.
The state agency is in talks with Chinese handset makers to produce its CAT Phone brand. It plans to place the first order for 1,000 handsets to test the market before distributing them commercially.

Mr Piriya said the diversification was part of CAT Telecom's strategy to seek new revenue sources in order to offset the effects of greater availability of privately run IDD operators.

CAT Telecom has suffered a sharp drop in IDD revenue, which generates about 50% of total earnings excluding concession revenues.

The state enterprise posted contract revenue of 651 million baht in the first nine months of this year. Even though CAT had an increase of 56% in overall revenue to 34.84 billion baht in the period, only 15.67 billion baht came from its own business operations.

CAT Telecom's core revenue _ 55% of its total _ now is concession fees from Total Access Communication (DTAC), True Move and Digital Phone.

''Without concession earnings, we cannot stand by ourselves if we could not establish other businesses, given the shrinking revenues,'' Mr Piriya said.

CEO Phisal Jorphochaudom said CAT Telecom was preparing for a broadband power line trial _ delivering IP-based broadband services on electric power lines _ at Parkland President Tower.