TT&T arm to invest in overseas calls

Bangkok Post (5 November 2007)

Triple T GlobalNet, a subsidiary of the provincial fixed-line operator TT&T, is preparing to spend 200 million baht on an international direct dialling (IDD) service to create new revenue to offset declining fixed-line earnings.

The company has already applied for an IDD licence from the National Telecommunications Commission (NTC), and expects to receive it by the end of this year.

The NTC said it might allow Triple T GlobalNet to temporarily use the prefix 024 as its IDD service number until the state telecom enterprise TOT returns its unused 002 and 003 prefixes.

Prasitchai Kritsanayunyong, senior vice-president for corporate finance of TT&T, said the company would begin commercial IDD service early next year without passing through CAT Telecom's international gateways.

Triple T GlobalNet also holds an international internet gateway (IIG) licence, enabling it to provide a data communications network in areas with leased line service.

Mr Prasitchai said competition in the local IDD market would be intense next year thanks to the full liberalisation of overseas calls.

''We expect to see at least a 20% decline in calling rates,'' he said.

Up to six telecom operators provide IDD services through eight numbers in Thailand. TOT and CAT Telecom are the only operators that have two IDD prefix offerings each. The remaining four operators are subsidiaries of AIS, DTAC, True Move and TT&T.

Mr Prasitchai said Triple T GlobalNet expected revenue of 500 million baht in 2008, of which 400 million would come from IIG and 100 million from IDD services.

TT&T targets total revenue of 8.8 billion baht next year, a slight increase from an expected 8.6 billion this year.

But he admitted that TT&T was likely to face losses until next year, largely due to a sharp decline in fixed-line revenue as a result of intense competition from mobile operators.

Mr Prasitchai said TT&T also planned to spend another 200 million baht expanding its data communications network capacity to cater to increasing demand from corporate customers, including banks and telecom firms.

The company expects revenue of 400 million baht from data network services this year and 600 million baht in 2008.

Mr Prasitchai said TT&T subsidiaries were making greater profits, helping the parent firm to offset losses. ''We expect to break even by 2009,'' he said.