DTAC aiming for top

The Nation (12 December 2007)

New subsidiary applies for NTC licence

Wide Broadband, a new subsidiary of Total Access Communication (DTAC), applied for a licence from the national telecom regulator last week to offer broadband-Internet access.

The move is part of DTAC's plans to make a foray into the wireless- and wireline-broadband domain, with the goal of taking the lead in the long term.

Wide Broadband managing director Sunti Medhavikul yesterday said the company applied for a type-3 licence, which is for applicants offering telecom services via its own large network.

He said Wide Broadband also needed to have a local partner with broadband-Internet expertise to help it develop the business.

He declined to specify the budget for the broadband-network roll-out but did say service coverage would be nationwide. Wide Broadband expects to take between six and 12 months for network design and roll-out.

Wide Broadband is capitalised at Bt1 million and will increase capital later for the network roll-out.

Sunti said the broadband-Internet market still had ample room for growth, given that there were only about a million broadband-Internet users out of a total Thai population of 65 million. The country now has about 10 million combined narrowband- and broadband-Internet subscribers.

True now commands the broadband-Internet market with nearly 600,000 subscribers, followed by TOT with 200,000.

Sunti said Wide Broadband had also recently applied for a licence from the National Telecommunications Commission (NTC) to test Wi-Max wireless broadband-access technology.
Last month, DTAC chief executive Sigve Brekke urged the NTC to join with all private telecom operators to promote third-generation (3G) wireless broadband technology on a trial basis.

While the NTC has mentioned many times it was planning to finish drafting 3G frequency licensing terms this year, it is uncertain whether it can award the new spectrum licences as planned.

The new Constitution calls for a new regulator, the National Broad-casting and Telecommunications Commission, but the process to set it up will take time.

The second-largest cellular operator, DTAC, has about 16 million mobile-phone subscribers.

Dollar Split Against Euro, Yen

The Wall Street Journal (12 December 2007)

After Fed's Interest Rate Move Associated PressNEW YORK -- The dollar rose against the euro but fell versus the yen Tuesday after the U.S. Federal Reserve trimmed a key interest rate by a quarter of a percentage point, falling short of some traders" expectations.

The Fed cut its benchmark federal funds rate to 4.25%, marking the third reduction in three months. The central bank signaled that further cuts were possible if a severe downturn in housing and a crisis in mortgage lending worsen. The central bank also reduced its discount rate, the interest it charges to make direct loans to banks, by a quarter-point to 4.75%.

Currency traders had priced in a quarter-point cut to the federal funds rate, with some expectations for a half-point reduction, said David Gilmore, a partner at Foreign Exchange Analytics in Essex, Conn. The Fed's decision left investors skeptical of the central bank's ability to get ahead of the credit crunch gripping U.S. markets, Gilmore said.

"I don't think this generates a major change in terms of the dollar," he said. "I think the Fed gets a 'C-minus' today for adequately addressing the credit crisis."

Investors disappointed by the central bank's decision sold off stocks, sending the Dow Jones industrial average plummeting almost 300 points.

Following the announcement, the dollar strengthened against the euro but dropped against the yen. The 13-nation currency fell to $1.4675 against the dollar from $1.4712 in New York late Monday. The dollar declined to 110.82 yen from 111.67 yen, as investors shied away from risky yen carry trades, which involve selling off the low-yielding yen in favor of higher-yielding dollars. The British pound dropped to $2.0356 from $2.0462.

Used to jump-start an economy, lower interest rates typically weaken a currency by cutting into investors' returns on assets denominated in it. Recently, however, currency traders with hopes for a stronger economy have also weighed rate cuts' potential to avert a recession, boosting the dollar some.

Tuesday's cut marks the Fed's third rate decrease since September amid mortgage problems in the U.S. that have tripped up borrowers and caused a credit crisis among banks -- fueling wider fears about the health of the U.S. economy.

Despite recovering some in recent weeks, the U.S. currency took a hit after the Fed's two previous cuts, with a bolder-than-expected half-point decrease in September and a quarter-point cut at its Oct. 31 meeting.

A weaker dollar is welcome news for some, including manufacturers who are eager to see American exports become more competitive. The slump has also spelled rising prices for imports and diminished spending power for American tourists overseas.

Last week, the Bank of England cut its benchmark rate to 5.5% from 5.75 percent, but the European Central Bank left its rate unchanged at 4%.

In a day otherwise light on economic data, the dollar bought 1.1319 Swiss francs, up from 1.1282 late Monday, and 1.0130 Canadian dollars, rising from 1.0073.