SingTel:Regional Mobile Subscriber Base Grows To 171.5M End-Dec

The Wall Street Journal (5 February 2008)

SINGAPORE (Dow Jones)--Singapore Telecommunications Ltd. (Z74.SG) said Monday its regional mobile subscriber base rose 53% on year to 171.5 million in the quarter ended Dec. 31 on strong subscriber growth from associates in India and Indonesia.

Bharti Airtel Ltd. (532454.BY) in India added 6.29 million mobile subscribers in the quarter, increasing its total subscriber base to 55.16 million.

Indonesia's PT Telkomsel added 3.43 million subscribers in the quarter to bring its total to 47.89 million.

SingTel said in a statement that it also saw subscriber growth in Singapore and Australia as well as its associates in Thailand, Philippines, Pakistan and Bangladesh.

The subscriber base for the quarter was boosted by the addition of Pakistan's Warid Telecom's 13.21 million subscribers for the quarter, the company said.

SingTel acquired a 30% stake in Warid in September.

True to invest B10bn to triple growth rates of linked services

Bangkok Post (1 February 2008)

True Corporation plans to spend more than 10 billion baht this year to push forward its content-led convergence services with the aim of almost tripling its businesses growth to 8%. The country's only integrated telecoms firm has earmarked an additional 10 billion baht to invest in third-generation (3G) mobile services on a new 2.1 GHz frequency once the National Telecommunications Commission (NTC) issues 3G licences.

True has also announced plans to enter a fixed-line

partnership with TOT Plc and a venture with CAT Telecom for mobile phone services. Supachai Chearavanont, the chief executive of True Corp, said mobile affiliate True Move was in talks with both TOT and CAT on possible joint ventures.

''We expect to strike a memorandum of understanding with TOT on fixed lines on a telecom pool basis to reduce duplicate network investments and improve service quality,'' he said. ''We're also in talks with CAT Telecom on a possible partnership.''

He said the Thai telecom industry was entering an ''alliance fever'' era in which state enterprises and private companies were looking for business participation for win-win solutions.
For 3G investments, he said, his company was not willing to upgrade its existing 2G network, saying it would not be worth the investment and not viable.

''We prefer to wait for a new 3G licence and frequency from the NTC before choosing the upgrade alternative, with a budget of 10 billion baht.''

Of the 10 billion baht True plans to spend this year, six billion will go to mobile network expansion. Up to two billion baht would be for its fixed-line business, two billion for

broadband internet, WiFi and WiMax, and 1.2 billion for TrueVisions pay-TV.

Mr Supachai said the group aimed to grow by 8% this year, up from 3% last year, driven by non-voice services, broadband internet and cable TV.

The proportion of True Move's voice revenue has gradually declined to 69% last year, down from 72% in 2006 and 88% in 2005.

In 2007, True reported EBITDA of 19 billion baht on revenue of 52 billion baht. As of Sept 2007, the firm's debt-to-EBITDA ratio was 3.7. The group's businesses grew by 3%. or by 5-6% excluding fixed-line and PCT services.

Mr Supachai said the mobile industry would likely have between eight and 10 million new subscribers this year. True Move aims to increase its share to 25% this year, up from 23% last year.

The company's broadband subscribers are expected to increase from one million to 1.3 million this year. It plans to expand its WiFi hotspots to 10,000 from 4,000.

Mr Supachai said True planned to focus on innovations, network and services this year. The new government, its policies and political stability would be the crucial factors for the communications industry, he said. New operating licences for 3G and opening up the industry were priorities, he added.

True Corp shares closed yesterday on the SET at 5.30 baht, up 15 satang, in trade worth 296.72 million baht.

CAT still pursuing ZTE deal

Bangkok Post (1 February 2008)

CAT Telecom is determined to award a contract to the Chinese telecom supplier ZTE to build a 9,000-kilometre optical-fibre cable network worth 2.6 billion baht despite questions about transparency from the Auditor-General. Air Marshal Piriya Siriboon, a CAT board spokesman, said it would meet on Tuesday to consider approving the deal and sending a letter of intent to ZTE. He said the Chinese vendor would have 15 days to consider whether to sign the contract after receiving the letter.

CAT must go ahead with this significant project since it started almost four years ago. Although some might think this could be the board's last project before its term expires, the timing was just a coincidence, ACM Piriya said.

The board said the project should not be prolonged further because it might have to go back to square one.

The Office of the Auditor-General had questioned CAT three times about the project, but the board was free to make its own decision even though a new minister would be appointed very soon, he said.

In principle, the minister should take on policy matters rather than going deep into the details of each project, he said.

The project was ready to go forward because CAT had clarified all questions with the auditor-general, and so far it had not raised further queries, he said.

''We've explained to them all the processes related to the bidding and equipment specifications and why we selected ZTE,'' he said.

A source said the Office of the Auditor-General had questioned CAT on past performance conditions.

Specifically, it asked whether the company intended to eliminate certain bidders to favour one contender by easing a condition related to past performance. The original terms required bidders to have had experience with a similar project worth at least 500 million baht but the figure was reduced to 200 million.

It also noted complaints by some contenders who were technically disqualified, and asked why ZTE was qualified even though it also proposed equipment that did not meet CAT's required specifications.

The source said the deputy auditor-general had told Gen Montri Sangasap, the CAT board chairman, that executives or directors of the state telecom enterprise might be found guilty of collusion if all complaints were true.

The cable project would link all parts of the country with the capital via optical-fibre networks covering a distance of 9,000 kilometres.

Another Chinese telecom equipment supplier, Huawei Technologies, had earlier won part of the project, to install an optical-fibre network in the western, central and northern areas of Thailand for 484 million baht. ZTE also won part of the project in the South with a quote of 169.86 million baht, lower than the reference price of 212 million baht.

But all bids were scrapped and the new bid was called with ZTE becoming the favoured contender to win all parts worth 2.6 billion baht.

In another development, the board of CAT's sister telecom agency, TOT, has decided to cease all procurement projects now that a new cabinet is preparing to take office.

For ethical reasons, the board should not approve any projects pending the arrival of a new government and a new board, said TOT director Djit Laowattana.

CAT board approves sale

The Nation (11 January 2008)

State agency wants to focus on own CDMA service

The board of CAT Telecom has approved the state agency's plan to divest its shares in Thai Mobile to TOT, the other partner in the joint-venture cellular operator.

CAT owns 42 per cent of Thai Mobile, worth Bt2.4 billion, and TOT the rest.

Spokesman Piriya Siriboon said the agency wanted to focus on its own Code Division Multiple Access (CDMA) 2000 1-x cellular service.

As well as owning a CDMA network covering 51 provinces, CAT also holds a 26-per-cent stake in Hutchison-CAT, which markets a CDMA service via a different network covering 25 provinces.

CAT is still negotiating with Hutch's major shareholder, Hong Kong-based Hutchison Telecom, about a collaboration to bring the two CDMA networks together.

Piriya said the board would meet again on January 19 to discuss CAT's five-year business plan, which is aimed at improving the agency's operating efficiency. The plan will see CAT relying less on concession revenue.

Last year, CAT recorded unaudited revenue of Bt47.207 billion, of which Bt28.814 billion was concession revenue and the remaining Bt18.393 billion was operating revenue.

Its net profit last year was Bt12.130 billion. Of that, more than Bt11 billion was earned from concessions and the rest from business operations.

CAT president Phisal Jorphochaudom said the agency had a cash flow of Bt17 billion for new business development. It also had reserves of Bt4 billion to be paid to TOT for access charges.

He said the state agency would also urge Chinese telecom-equipment supplier Huawei Technologies to install its CDMA network completely in 51 provinces this month. After its completion, CAT plans to calculate the fine it will impose on Huawei for late delivery.

In 2005, Huawei quoted Bt7.2 billion to win the job to deploy 1,600 base stations in two phases of 800 each. Early last year, CAT's board decided to exercise a contract provision under which it could penalise the supplier at a rate of Bt90 million a day for late delivery.

Huawei says the dispute stems from different interpretations of the contract. Huawei believes it had to deliver the second phase by last January 26, which it did. It also believes a complementary high-speed software package was supposed to be completely installed in the network this year.

But CAT says the contract stipulates that the entire network had to be delivered last January.
After the conflict erupted, Huawei delivered the high-speed software package last November.
On Wednesday, Huawei disclosed that it had filed a petition with the Central Administrative Court, because CAT Telecom had yet to pay a second instalment amounting to 25 per cent of the total project value, which was due last February.

Phisal said CAT had yet to report Huawei's legal action to the board.

Meanwhile, Piriya said the CAT board had stated its preference for the interconnection-charge regulations introduced by the National Telecommunications Commission (NTC), rather than TOT's access-charge regulations.

The access charge is a payment CAT and its three private cellular concessionaires have made to TOT for routing their customers' calls to different networks via TOT's facilities.

The NTC introduced the interconnection regulations last year, requiring all operators to share voice and data revenue between networks involved in calls on a bilateral and proportionate basis.

CAT has already begun negotiations with cellular operators to fix bilateral interconnection-charge rates. However, the cellular operators have rejected CAT's offer to pay them an interconnection rate of 21 satang a minute, saying the rate was unacceptably low.

True Move seeks five-year extension to concession deal

The Nation (11 January 2008)

True Move has asked CAT Telecom to extend its concession contract by five years from 2013 to make it easier for the company when dealing with creditors and network suppliers for new investment.

CAT president Phisal Jorpochaudom said True Move had requested that the new term be on a network-leasing basis, instead of the current build-transfer-operate basis.

"It promises that its network-leasing fee will be the same as its current concession fee," he said yesterday.

True Move has shared 25 per cent of its revenue with CAT, its concession owner. If granted, the concession would expire in the same year as that of Total Access Communication (DTAC).

Phisal said True Move needed the concession extension to enable it to deal easily with creditors and network suppliers.

True Move is reportedly having to make a number of moves right now to ensure that, if it cannot get a new frequency licence from the National Telecommunications Commission (NTC), at least it will still have the CAT frequency to continue offering a service after the existing concession expires.

True Move informed the NTC on December 4 that it wanted to replace CAT in using certain bands on the 1800MHz and 800MHz spectra for commercial purposes. The bands are currently being used by DTAC.

True Move has 12 million customers and has mentioned many times that it wants additional frequencies to ease the congestion on its existing 12.5MHz of bandwidth in the 1,800MHz spectrum.

True Move also notified the NTC on December 14 that it wanted to replace CAT in owning bands of the 1800MHz spectrum being used by True Move itself.

CAT chairman Gen Montree Sungkasap said CAT had set up two committees, one to oversee True Move's request for a concession extension and another for the use of some CAT frequency bands. The board will convene on the two cases on January 19.

CAT spokesman Air Vice Marshal Piriya Siriboon said that CAT and DTAC would defend their right to own the targeted frequency bands.

"We'll assign legal staff to examine whether it is legally possible to take over our frequency bands and if there is a legal basis that can protect us," he said.

Advanced Info Service also informed the NTC on December 25 that it wanted to acquire certain bands in the 800MHz spectrum of CAT, which are being used by DTAC and Hutchison-CAT.

UN economists say Thailand could attain 4.9% growth in 2008 with political stability

Channel News Asia (11 January 2008)

By IndoChina Correspondent Anasuya Sanyal Posted: 10 January 2008 2046 hrs

BANGKOK: A new United Nations report forecasts that global economic slowdown is likely to weigh on Asian economies in 2008. Although they will continue to expand – despite record oil prices and fears of a possible recession in the United States – UN economists said growth may not match the rates achieved in 2007. Last year, developing Asia Pacific economies achieved 8.2 percent average growth. The forecast for this year is 7.8 percent, spurred on by powerhouses China and India. The experts said while the regional economy is not as tied to developments in the US as a decade ago, countries heavily reliant on exports will be hardest hit. Many Asian currencies have been appreciating against the greenback, weakening exports. The potential Asian repercussions of a deepening sub-prime home loan crisis in the US and a hard landing for the US dollar would hit the economies of Taiwan, Korea and Singapore the most as they are the most open. China's growth rate could go down 3 percent, but India would be the least affected country in the region. The Chinese economy registered 11.5 percent growth for 2007, while India grew by 9 percent. The UN economists said sound macro-economic policies and diversified export destinations will limit the impact of external shocks on the region. For Thailand, Southeast Asia's weakest performer last year, UN economists attributed its slowdown to political instability and a decline in demand. But they believe the kingdom can attain 4.9 percent growth this year, up from 4.5 percent. Ravi Ratnayake, Chief Economist, United Nations Economic & Social Commission for Asia & The Pacific, said: "Firstly, it is important to have a clear direction of policy so that investors and consumers know where the economy is heading. That's number one. Number two and most importantly, is political stability." Thailand held general elections last month and a new government has to be formed in the coming weeks.

Cellular firms in poaching mode

The Nation (9 January 2008)

The delay in new cellular frequencies and the recent rules for frequency-rights transfers have sent some cellular operators to poach the spectra of rivals.

The floodgates were opened last year when the National Telecommunications Commission (NTC) imposed regulations on the transfer and sharing of frequencies, citing the country's need to maximise its bandwidth use.

True Move rushed to exploit the new regulations by informing the NTC of its intent to take over the right to use some bands of CAT Telecom. True Move, with 12 million subscribers, said it needed to ease the congestion on its 1800-megahertz spectrum.

Earlier, True Move parent True Corp filed an application for a new spectrum through its Samut Prakan Media subsidiary, but the NTC declined to consider it, due to the lack of new frequencies.

One telecom industrialist said True Move's concession would expire in 2013, so it had to seek a replacement spectrum now. After that, it may transfer the new spectrum to a subsidiary licensed to offer the service.

The NTC has proposed allocating third-generation and WiMax wireless spectra this year, but it is uncertain whether it dares to do so and risk a possible legal backlash.

The Frequency Allocation Act mandates the NTC and the National Broadcasting Commission (NBC) to award telecom and broadcasting spectrum licences jointly. But in 2005, the Central Administrative Court invalidated the process of selecting 14 candidates for seven NBC seats, citing the unconstitutionality of the process. Now the country is forming a new regulator, the National Broadcasting and Telecommunications Commission, to oversee both industries.

Earlier, there was speculation that the cellular operators would want to share the 1900MHz spectrum of Thai Mobile, the joint-venture cellular operator of CAT and TOT.

But they have reportedly hesitated to ask for NTC permission, in order to avoid the issue of spectrum ownership, because CAT has yet to agree to sell its 42-per-cent stake in Thai Mobile together with its ownership of the joint spectrum to TOT.

Loxley group wins CAT bid

Bangkok Post (8 January 2008)

LSI Consortium, comprising Loxley Plc and International Engineering Corp, yesterday won an electronic auction for CAT Telecom's integrated billing and customer service system project with a bid price of 891 million baht. The consortium's price was 36% lower than the official median price set earlier by CAT Telecom.

Air Marshal Priya Siriboon, the CAT board spokesman, said the bid was very satisfactory because it was the lowest ever. CAT earlier expected the project to cost around 1.2 billion baht.
The runner-up was ISA consortium, which offered 978.5 million, or 30.11% less than the median price. Third was STCC consortium at 1,244 million baht.

Three groups of companies entered yesterday's e-auction witnessed by representatives of the Office of the Auditor-General and the Comptroller-General's Department. The low bid did not represent price collusion because it was much lower than the median price, said Air Marshal Priya.

Although the LSI group won the auction, it still needs to negotiate the final price with CAT.
CAT Telecom first called the bids to replace its 10-year-old system in April 2005. Five groups entered but only three met the technical requirements. M-Link Asia Plc, a company associated with a sister of ousted prime minister Thaksin Shinawatra, was among the three that qualified to enter the e-auction.

However, the bid was later scrapped after complaints that specifications had been rigged. CAT Telecom invited vendors to attend a meeting on April 5, and more than 40 showed up to hear the terms of reference. All of them had to sign an acknowledgement of their attendance and the bidding conditions.

But some vendors questioned the technical requirements, which would enable only a handful to bid. Setting high technical specifications eliminated small vendors from contention, they said.

'Leave it all to the new regulator '

The Nation (8 January 2008)

CAT Telecom and Total Access Communication (DTAC) said the national telecom regulator should not exercise regulations covering frequency-rights transfer and frequency sharing at this time when a new regulatory body will be formed.

The comments came after True Move wrote to inform the National Telecommunications Commission (NTC) on December 4 of its intention to replace CAT in using certain bands on the 1800-megahertz and 800MHz spectra for commercial purposes. The bands are part of the frequencies being used by DTAC to offer cellular services under a concession from CAT.

Sources at both CAT and DTAC shared the view that the NTC should not touch the big frequency issue at this moment. But one telecom industrialist said the NTC should go ahead and ensure fair frequency allocation if it could guarantee the maximum national interest.

DTAC chief executive Sigve Brekke yesterday insisted nobody could claim DTAC's frequencies and that DTAC would definitely defend its right to use these frequencies.

But he added that DTAC might be willing to give some frequencies to True Move if at the same time DTAC could get some existing 900MHz frequency bands from Advanced Info Service (AIS).

The Frequency Allocation Act amendment, which mandates the establishment of the National Broadcasting and Telecommunications Commission, is waiting to be handled by the new government.

True Move cited NTC regulations for frequency-licence transfers and frequency sharing to stake claims on CAT's bands. Telecom operators are allowed to seek the NTC's permission to either transfer the rights and duties of a spectrum to other operators or use other operators' spectra in place of the existing users.

True Move has 12 million customers and mentioned several times it wants additional frequencies to ease the congestion on its existing 12.5MHz of bandwidth on its 1,800MHz spectrum.

According to a document attached to True Move's letter and obtained by The Nation, True Move said DTAC, which owns the 11.5MHz bandwidth of 800MHz and 50MHz bandwidth of 1,800 MHz, has too much spectrum bandwidth. Moreover, it says its intention to use the spectrum bands will not affect DTAC, but rather promote fair competition on a level playing field.

"If True Move were allowed to own such bands, we believe this would lead to our huge investment. In 2005 and 2006, the company shared Bt6.740 billion and Bt7.584 billion with CAT, respectively, and CAT paid the amount to the Finance Ministry, which meant, accordingly, that the country gained more income," the letter said.

True Move also notified the NTC on December 14 that it wanted to replace CAT in owning bands of the 1800MHz spectrum being used by True Move itself.

CAT forwarded True Move's letter, which it received from the NTC, to DTAC yesterday.

Besides True Move, AIS informed the NTC on December 25 that it wanted to acquire certain bands on the 800MHz spectrum of CAT, which are being used by DTAC and Hutchison-CAT.