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.