Telecoms body asked to help expand markets

The Nation (20 November 2007)

Local makers of telecom equipment have asked the national telecom regulator's research institute to focus on supporting their marketing efforts and improving the knowledge of people who work in the IT industry, ensuring sustainable growth.

Forth Corporation's managing director Pongchai Amtanon said yesterday that the Telecommunications Research and Industrial Development Institute (TRIDI) should devise a plan to support the efforts of local companies to expand their markets.

Moreover, the institute should come up with a clear research and development plan to guide local companies into moving in the same direction.

Pongchai was speaking at a seminar entitled "The Success of the Local Telecom Equipment Manufacturing Industry", hosted by the TRIDI as part of the Bangkok International ICT Expo 2007 at Impact Muang Thong Thani.

His company manufactures telecom products from its own research and development efforts. Most of its products are for export, but among its local customers are TOT and the iPSTAR broadband satellite service of Shin Satellite.

Last week, Forth emerged as the winner of bidding for a contract to provide broadband network equipment to TOT nationwide by quoting Bt860 million. TOT says it will bargain for a lower price.

Another seminar panellist, the chief operating officer of fibre-optic equipment manufacturer Fabrinet, Teera Achariyapaopan, said the institute should also promote programmes for improving the quality of Thailand's IT workforce.

Fabrinet exports all of its products after focusing on product quality and reliability.

The National Telecommunications Commission set up the TRIDI a year ago to promote research and development in the telecom industry, especially in wireless equipment and broadband multimedia products.

BoI to stop supporting low-tech businesses

Bangkok Post (20 November 2007)

‘Labour-intensive, low-quality and low-technology sectors will no longer receive investment privileges from the Board of Investment (BoI), effective next year. Satit Chanjavanakul, the BoI secretary-general, said the state was focusing on promoting investment in high-technology and high-grade products.

''We aim to phase out [promotion of] manufacturers that have fewer advantages in global competitiveness,'' he said.He said the agency promoted labour-intensive manufacturers for decades, but that it would no longer be a fruitful business since the new emerging economies such as China, India and Vietnam have lower labour costs.

He said Thai manufacturers had entered the era of high technology through research and development and more complex product design.

Existing textile, garment and footwear manufacturers also have the opportunity to gain investment privileges through a machinery and equipment replacement programme.

The BoI forecasts 550 billion baht in new applications for investment privileges for 2008, up 10% from 500 billion baht estimated in 2007.

Automobiles and parts, electronics, chemicals, steel, services and alternative fuels would be major growth areas.

The BoI reported 498 billion baht in net application from January to October this year, up 20% from 414.5 billion baht a year earlier.

It expects slightly more than 500 billion baht for all of 2007.

AIS trims capital spending forecast again

Bangkok Post (20 November 2007)

Advanced Info Service Plc, the country's biggest mobile-phone operator, has scaled back its capital spending plans for the second time since September, reflecting the sluggish local economy. AIS said it planned to spend 17 billion baht this year, down from the 18 billion baht forecast last month and a projection of 20 billion baht made in September by president Wichian Mektrakarn.

Shares of AIS (ADVANC) closed yesterday on the Stock Exchange of Thailand at 86 baht, down two baht, in trade worth 216.57 million baht. BLOOMBERG