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.

Military not happy with PPP win

Bangkok Post (25 December 2007)

The result of the election has upset the military's top brass, including army chief Gen Anupong Paojinda, who are worried about the People Power party (PPP) taking revenge for the Sept 19 coup last year. The uneasy atmosphere in the barracks was revealed yesterday by military sources as the PPP, a reincarnation of the Thai Rak Thai party (TRT) toppled by the coup, moves closer to coming to power. Top officers are worried, particularly about their futures in the military reshuffle next year.

Gen Anupong suddenly became irritated when asked by reporters to comment on what would happen to the army under a PPP-led government.

''I'll not answer. I'll say nothing,'' the army chief said.

Gen Anupong, one of the key men in the coup, had earlier said he would not be worried if the PPP forms the next government and ruled out the possibility of another coup.

He made it clear when he assumed the top army job in September that the army would not interfere in politics, a stance which earned him the tag of ''good guy'' from PPP leader Samak Sundaravej.

Analysts expect Gen Anupong to lead the army until the military reshuffle in September next year and then be transferred to head the Supreme Command or to become permanent secretary for defence.

Outgoing deputy prime minister and former chairman of the Council for National Security (CNS) Gen Sonthi Boonyaratkalin could also be prevented from playing any active role in politics, a military source said.

Gen Sonthi reportedly rushed off to meet Privy Council president Prem Tinsulanonda late at night on election day. Gen Sonthi led the coup group which toppled prime minister Thaksin Shinawatra, who was alleged to be involved in massive corruption, as Mr Thaksin was attending a United Nations meeting in New York.

Other CNS members, including air force chief ACM Chalit Phukphasuk, permanent secretary for defence Gen Winai Phattiyakul, navy commander Adm Sathiraphan Keyanont, supreme commander Gen Boonsrang Niampradit and deputy permanent secretary for defence Gen Saprang Kalayanamitr, may escape any retribution from a new government as they will retire next year.

Some military sources said a PPP-led government, if successfully formed, would not resort to harsh action against the military because it would lead to a serious conflict. However, there will be changes at the top in the military.

Thaksin-backed party takes lead in polls

Business Times (24 December 2007)

FIFTEEN months after being ousted by the military in a coup d'etat, the party backed by former prime minister Thaksin Shinawatra, has taken a lead in Thailand's much awaited general elections

The People's Power Party (PPP), which is closely associated with Dr Thaksin, looks set to get the first chance to form a government. Early indications suggested that the party could secure more than 230 seats out of the 480 seat Thai parliament.

'We are going to form the government as we have the largest number of seats, and we hope to have the decision by early next month on which other party would join us,' Samak Sundaravej, the leader of the PPP said at a press conference.

He added that he wanted the Election Commission to announce the results soon, so as to allow a government to be formed.

Mr Samak in the past had said that he wanted the self-exiled Dr Thaksin to return to Thailand and fight the legal cases against him, along with granting a general amnesty to the 111 members of Dr Thaksin's now defunct Thai Rak Thai party.

The PPP leader said that his party aims to have at least 300 seats in Parliament. He would also like to have allies among other parties, he added, so that the government would be more stable.
Mr Samak also cast doubt on the early polls conducted on Dec 15 and 16 when close to three million people took part, including about one million in Bangkok alone.

'From the exit polls we had on those two days, it was evident that we were in the lead but we have our suspicions now as the results in Bangkok look very different from those that we had anticipated,' he said.

'We will investigate this and inform in the future,' Surapong Suebwonglee, the party's secretary-general said.

Meanwhile, the PPP's biggest opponent, the Democrat party, said that it was willing to accept the results and as the PPP has invited parties to join it in forming a government, the Democrats would wait for the PPP to try its luck first. If the PPP fails, they will then look into ways to form a government. The Democrat party ruled out joining the PPP team.

Military installed Prime Minister Surayud Chulanont said that it was time that the people's voice was heard and that a government should be formed as soon as possible.

'I would like to request that all parties should accept the results, as the outcome is the wish of the people and we have to listen to their voice,' Mr Surayud said.

He added that a lot of work still needed to be done before a new government could take office, noting that the PPP, while being in the lead, is still short of a majority.

Mr Surayud stressed the need for reconciliation in Thailand so that the country could move forward. He urged the people and political parties to heed the message of Thailand's King Bhumibol Adulyadej, who has called for national unity.

Commenting on the ongoing cases against PPP that could lead to its dissolution, he said that the process should be left to the justice department and nobody should intervene.

'The justice system should not be intervened in and we have to leave it to the department to make its own decisions,' he said.

Some leaders of Thailand's smaller parties - such as Sanoh Theinthong of the Pracharaj Party - attributed the success of the PPP in this poll to the failure of the current government and the military.

As at 10 pm local time last night, the PPP was leading with 232 seats. The Democrat Party had 162 seats, the Chartthai Party 40 seats and the Puea Pandin had 24 seats.

Official results will be known in a month's time although the Election Commission indicated that it will announce them as soon as possible.

Stability of next govt seen as crucial

The Nation (25 December 2007)

Concern over restoration of confidence
The business sector is worried about the stability of the next government and fears the election results are unlikely to revive confidence as soon as expected, because they could lead to further political tension regardless of which party takes power.

Since the People Power Party (PPP) appears in the best position to form the coalition government, businessmen also warned that it must be careful in terms of public spending to finance its populist policies.

Sunday's election saw a close result in the proportional representation votes. And even though the PPP won the most seats overall, it did not win a clear majority and has yet to form a coalition.

"Trade and investment are likely to slow down further next year," said Marco Sucharitkul, president of JP Morgan Securities (Thailand). "The new government is unlikely to push for big policies because the political tension is set to continue even after the election."

The unofficial vote result gave the PPP 232 of the 480 seats in the lower House. The Democrats came second with 165 seats, followed by Chart Thai with 37 and Puea Pandin with 25.

Federation of Thai Industries (FTI) chairman Santi Vilassak-danont is concerned that economic confidence will be shaken, no matter who forms the new government.

If the PPP forms the government, opposition could arise, he said. In that scenario, the economy would suffer from lower confidence as the private sector prefers a stable government which can ably lead the country out of tough times.

"The voting result could pose some problems to national administration due to the opposition's numerous demands. This could rock the new government. However, if the Democrat Party becomes the core coalition party or becomes part of the government, opposition should be nil at the beginning, but internal conflicts could occur after a while," he said.

"If any party forms a government and makes the public lose more confidence, I do not think it should remain the government then."

He believes that if the Democrat Party takes power, it will hurry to produce results because it wants to create a good image and boost public confidence in the party.

Santi said foreign investors were eager to know who would be the next prime minister. If economic ministers are acceptable, this could restore confidence.

Pramon Sutivong, chairman of the Board of Trade of Thailand, said he was worried about the new government's economic policy.

"The new government should be careful in implementing economic policies, especially populist ones because revenue might not be sufficient to finance these policies, even though they have both good and bad consequences."

Pramon called for policies to increase people's income to be accelerated.

On an amnesty for the 111 banned Thai Rak Thai politicians, he said: "The new government should respond to people's needs, not satisfy its own agenda. The amnesty might erode people's confidence here and abroad."

Poj Aramwattananont, chairman of the Thai Frozen Foods Association, agreed, saying the new government should focus instead on resolving political conflict and the violence in the South.
Tanit Sorat, chairman of the FTI's committee on transport, transportation and logistics, said the private sector did not expect much from political developments.

"Everything has changed. We believe the economy can continue to grow under the pressure of political turmoil," he said.

"We have to watch the decisions of Puea Pandin and Chart Thai," said FTI vice chairman Nipon Surapongrukchareon. "If they join in a PPP-led coalition government and People Power leader Samak Sundaravej is appointed as prime minister, he will need to adjust his points of view in order create harmony among the parties."

However, he said the PPP's team seemed to be too weak to handle the tough economic problems and should recruit economic experts to build confidence among local and foreign investors.

Wichian Mektrakarn, president of cellular operator Advanced Info Service (AIS), said he would welcome any government as long as it is democratically elected. He insisted AIS had a clear stance of staying out of politics.

AIS is the flagship of Shin Corp, which was founded by the family of ousted prime minister Thaksin Shinawatra.

Darmp Sukontasap, Tesco Lotus senior vice president, said the high turnout for the election was encouraging. "This indicates that most Thais are looking forward to greater political and economic stability following the election," he said.

"In my view, the most urgent task for the new government is to restore investor and consumer confidence and get the economy back on track. Of course, political stability will have to come first. It is the only way the new government can effectively implement its policies."

Central Retail Corp CEO Tos Chirathivat said the private sector wanted political stability as the most significant factor in raising consumer confidence, domestic consumption and foreign investment.

"Any legislation and regulations, such as the foreign business and retail business laws to be considered by the new government, should be clear and certain so that firms can make business plans effectively," Tos said.

Chumpol Saichuer, chairman of the Thai Logistics Alliance, said the PPP might have more advantage in forming the new government than the Democrats as its populist policies had been proven over time.

However, investors' reaction to whichever party formed the government depends on which has a better economic leader and policies.

"The SET [Stock Exchange of Thailand] Index could be an indicator of which party would be welcomed," he said.

Krisada Chavananand, president of the Palm Oil Crushing Mill Association, said that whichever party formed the new administration should try to look ahead to create economic value.

The new government should also continue any projects that are beneficial to the country. "I hope not to see any doom-and-gloom situation in the forming of the new government," he added.

United Overseas Bank (UOB) Economic-Treasury Research said in a release that the aftermath of the election and the future of Thailand remained far from clear-cut.

Major risks ahead continue to impair the outlook for the economy. With projected 2007 growth in gross domestic product of 4.5 per cent, Thailand has lagged behind regional rivals like Indonesia and the Philippines due to political uncertainty.

The election had been hoped to turn the country's economic fortunes around, but domestic consumption and investor sentiment will likely to remain shaken for the first quarter of next year, and will recover only when a stable government can be formed and economic policy spelt out in the second quarter, the UOB unit said.

So far, markets have responded cautiously - the onshore baht rate was largely unchanged at 33.69 to the US dollar, compared with 33.71 on Friday. The SET rose 2.8 per cent on Friday in anticipation of a clear electoral outcome but is likely to reopen mostly lacklustre tomorrow, given the uncertainty about the next government.

The Association of Thai Travel Agents wants the new government to work more closely with the private sector and cater to tourism developers' needs, said president Apichart Sankary.

"Previous governments focused on tourism because it was a key sector for the economy. But they never worked to close to tourism operators. The country's tourism development could still fail," he said.

He said the association wanted electronic visas on arrival for foreign visitors, which are faster than manual immigration and more efficient too, and for work permits to be issued to foreign tour guides, particularly Koreans, Russians and Arabic speakers. It also wants the tourism portfolio to be under the prime minister.

One-Two-Go and Orient Thai airlines chief executive Udom Tantiprasongchai said the country could attract more than 20 million tourists a year in the near future, nearly double the current number, but the government has to encourage private development.

"Look at Malaysia, for instance. It gets almost 20 million arrivals a year, and there isn't that much to do [there] when compared with the tourism products and services we have. This success is because of government help," Udom said.

True wants new spectrum

The Nation (24 December 2007)

True Corp is asking the national telecom regulator for a new cellular spectrum to ease congestion on its subsidiary True Move's 1,800-megahertz band.

True Corp subsidiary Samut Prakan Media reapplied for the spectrum. With more than 12 million subscribers, True Move's 12.5-megahertz bandwidth of the 1,800 megahertz spectrum is almost saturated.

National Telecommunications Commission secretary-general Suranan Wongvithayakamjorn said the commission had no cellular spectrum available.

He said Samut Prakan Media would have to share spectrum as per regulations that took effect in July.

These pave the way for telecom operators to request commission permission to either transfer rights and duties of spectrum to other operators or use others' spectrum.

The regulations aim to reallocate existing spectrum for maximum utilisation.

Sharing plans need to be approved by the commission.

A True Move source said the company had asked Total Access Communication for the use of DTAC 50MHz-bandwidth, 1800MHz spectrum. DTAC declined, the source added.

DTAC uses the 800MHz spectrum, too. It wants to secure use of 900MHz spectrum from Advance Info Service (AIS). This frequency allows AIS to roll out provincial networks at lower cost than for 1,800MHz.

Telecom industry sees a mixed 2008

The Nation (25 December 2007)

The telecom industry is optimistic about growth in consumer spending on cellular services next year but has little hope of any progress on licences for new technology.

With the expected return of consumer confidence after the general election and rising number of subscribers, one telecom analyst forecast that spending on cellular services next year would grow by 11.6 per cent from the roughly Bt151 billion expected this year.

Advanced Info Service (AIS), the biggest cellular-service operator, conservatively forecast that such spending would reach Bt159 billion, versus Bt151 billion this year and Bt144 billion last year. The total number of mobile-phone connections is expected to reach 64 million next year, up from 52 million by the end of this year.

Sigve Brekke, chief executive of industry No 2 Total Access Communication (DTAC), is upbeat that the industry will see revenues growing strongly again after low growth in the last three years due to price wars.

Meanwhile, True Move chief executive Supachai Chearava-nont sees next year as a time to tap different market segments, not for price wars.

DTAC chief commercial officer Thana Thienachariya said the competition among cellular operators would shift from acquiring new users to maintaining existing customers in response to the virtual maturing of the market.

AIS has more than 23 million subscribers, DTAC more than 16 million and True Move more than 12 million. There are also more than one million broadband Internet subscribers in Thailand, of whom 600,000 are with True and around 200,000 with TOT.

On the regulatory side, AIS president Wichian Mektra-karn summed up his view of the industry next year in two words: "a mess".

He said the National Tele-communications Commission (NTC) had yet to grant the long-awaited new spectrum licences for third-generation (3G) or WiMax broadband wireless to telecom operators so that they could invest in the new technologies, which would boost the economy. Cellular operators hope to use the broadband wireless technology to offer new data services and boost revenue.

And even if the NTC does grant WiMax and 3G spectrum licences next year, these wireless broadband services will not be widely adopted before 2009, according to Kaneungjit Suriyathumrongkul, senior director of business development of Qualcomm Thailand, a market leader in the Code Division Multiple Access (CDMA) 2000-1x cellular technology.

NTC commissioner Setha-porn Cusripituck said the NTC expected to issue the 3G and WiMax licences next year. The regulator is in the process of hiring UK firm Interconnection Communications as a consultant to draw up the licensing terms and conditions for the 3G spectrum.

"We need time to carefully consider the number of licences and the allocation method to ensure maximum national interest," he added.

However, a telecom expert said he did not expect to see the NTC launching new spectrum licences or risking the possibility of legal action because it was supposed allocate telecom and broadcasting spectrums jointly with the yet-to-be formed National Broadcasting Commission (NBC).

The formation of the NBC was stalled in 2005 after the Central Administrative Court nullified the selection of 14 candidates for the seven posts because the selection process was unconstitutional.

Brekke of DTAC expects both 3G licences and mobile-number portability policy next year. These will drive the industry in the right direction towards a liberalised, level playing field, he said.

Number portability means telecom subscribers can keep their existing phone numbers even if they switch to another network.

Besides waiting for the new cellular licences, the industry has an existing problem to clear: the conflict between the NTC's interconnection fee regulations and TOT's access charge regulations.
The NTC imposed the interconnection regulations in November 2006; they require telecom operators to share voice and data revenue from calls between their networks on a fair basis under bilateral agreements. The more one network sends out call traffic, the greater the interconnection fee it has to pay to the receiving network.

This means that telecom operators whose networks get dumped with incoming traffic will be compensated. The high interconnection fee will also discourage telecom operators from dumping call traffic on other networks.

TOT opposed the regulations after DTAC and True Move stopped paying access charges to TOT and adopted the interconnection regulations instead. TOT retaliated by filing civil suits to demand from DTAC and True Move a combined overdue access charge of more than Bt14 billion.

The access charge is what DTAC, True Move and Digital Phone Co, all CAT concession-holders, have paid TOT to connect through its facilities. TOT earns more than Bt14 billion from access charges each year.

TOT also filed a lawsuit in the Central Administrative Court to revoke the interconnection regulations, citing the effect on its business. Many in the telecom business expect it will take years before a ruling is delivered.

AIS is not subject to the access charge because it holds a TOT concession. However, it is also feeling the impact of the access-charge dispute because TOT does not allow it to book interconnection revenue. AIS is estimated to earn net revenue of between Bt2 billion and Bt3 billion from interconnection fees per year.

NTC approves CAT interconnection

The Nation (19 December 2007)

State agency still needs to agree on a deal for charges with other operators

The board of the national telecom regulator approved the interconnection plan of CAT Telecom on Monday, which set in motion the state agency's entry into the new regulatory framework.

But it remains to be seen whether CAT can reach agreement on bilateral interconnection charge rates with telecom operators, due to its plan to pay a low interconnection rate.

National Telecommunica-tions Commission (NTC) chairman Choochart Phromprasid yesterday said the approval meant the state agency was the latest telecom operator to enter the regulatory scheme.

As the next step, CAT will enter into negotiations with telecom operators on bilateral interconnection charge rates.

The NTC imposed the regulations last November, requiring all telecom operators to bilaterally share voice and data revenue between the networks involved in calls on a fair basis.

According to its interconnection details, CAT plans to pay the origination and termination rates at the same 21 satang per minute. The origination rate is what CAT will pay to the networks that originate calls via its overseas call network.

The termination rate is for CAT and its joint venture cellular service marketer Hutchison-CAT to pay to the networks that receive their calls.

Advanced Info Service (AIS), Total Access Communi-cation (DTAC) and True Move, which signed bilateral interconnection rate deals late last year, have charged each other Bt1 per minute on average for the termination rate.

Currently, CAT shares Bt3 per minute of the revenue with the networks that originate calls via its conventional overseas call network, and Bt1.50 per minute for calls via its overseas call Internet Protocol network.

A telecom-industry source said it would be difficult for CAT to reach bilateral interconnection deals with the three cellular operators when all three have paid and receive the high termination rate of about Bt1 per minute.

They are concerned that if Hutch can pay the low termination rate, it will continue launching heavy promotions, given that it does not have to be burdened with the high interconnection-charge rate and that will prompt heavy Hutch call traffic on their networks, the source added.
DTAC chief commercial officer Thana Thienachariya said the CAT termination rate was unacceptably low. A source at CAT, however, said the calculation was based on the agency's actual business cost.

Thana added that if the cellular operators and CAT could not reach satisfactory agreements on rates, the NTC would intervene and impose interim rates for them.

Recently, DTAC filed a complaint to the NTC that Hutch's call promotions dumped 33 million minutes of call traffic per week on its network, while DTAC sent back only 16 million minutes of traffic per week. The NTC has yet to make a ruling on the matter.

Hutch has about 80,000 customers, while DTAC has more than 16 million

Government urged to stimulate local growth

Bangkok Post (19 December 2007)

The new government must move quickly to stimulate the domestic economy to help business operators, said Santi Vilassakdanont, the chairman of the Federation of Thai Industries.

The FTI estimated that domestic consumption expanded by only 1-2% this year, and made a minor contribution to the Thai economy. He urged the next government to concentrate on stimulating local consumption.

''The programme should be focusing on promoting new investments in order to increase liquidity in the Thai economy,'' Mr Santi said yesterday.

Political stability would be a key factor in promoting investment in the country, he said, as industrialists are reluctant to expand even though their capacity utilisation rates are as high 90%.

He said the industrial confidence index had risen slightly to 82.3 points in November from 81.9 the previous month, driven by hopes that the political environment would stabilise.

Further investment in petrochemical expansion on the Eastern Seaboard and in megaprojects would improve the investment climate and stimulate consumption, he said.

The Board of Investment (BoI) has granted investment privileges for 1,241 projects worth 662 billion baht in the first 11 months of this year.

The FTI predicted that growth in the industrial sector in 2008 would be on par with 2007 at 7% if GDP grows by 4.5% to 5%.

However, industrialists will still face the challenge of high oil prices and other fuel costs.

Although the domestic market has stalled, the export sector is forecast to expand by 16% to US$150.5 billion in 2007 and is projected to grow by 10-12.5% to reach between $165.6 billion and $169.4 billion in 2008.

Reflecting slow local demand were auto sales, where exports outpaced local sales for the first time, said Surapong Paisitpatnapong, a spokesman for the FTI's automotive industry club.

Revenue from car and motorcycle exports in the first 11 months of the year was 433.89 billion baht, up 25.63% from 345.38 billion baht in the same period a year earlier.

Mr Surapong said export revenue next year would continue to outpace domestic sales value.
Total car production in the first 11 months of this year expanded by 7.85% to 1.18 million units from 1.10 million units last year.

NTC approves CAT interconnection

The Nation (19 December 2007)

State agency still needs to agree on a deal for charges with other operators

The board of the national telecom regulator approved the interconnection plan of CAT Telecom on Monday, which set in motion the state agency's entry into the new regulatory framework.

But it remains to be seen whether CAT can reach agreement on bilateral interconnection charge rates with telecom operators, due to its plan to pay a low interconnection rate.

National Telecommunica-tions Commission (NTC) chairman Choochart Phromprasid yesterday said the approval meant the state agency was the latest telecom operator to enter the regulatory scheme.

As the next step, CAT will enter into negotiations with telecom operators on bilateral interconnection charge rates.

The NTC imposed the regulations last November, requiring all telecom operators to bilaterally share voice and data revenue between the networks involved in calls on a fair basis.

According to its interconnection details, CAT plans to pay the origination and termination rates at the same 21 satang per minute. The origination rate is what CAT will pay to the networks that originate calls via its overseas call network.

The termination rate is for CAT and its joint venture cellular service marketer Hutchison-CAT to pay to the networks that receive their calls.

Advanced Info Service (AIS), Total Access Communi-cation (DTAC) and True Move, which signed bilateral interconnection rate deals late last year, have charged each other Bt1 per minute on average for the termination rate.

Currently, CAT shares Bt3 per minute of the revenue with the networks that originate calls via its conventional overseas call network, and Bt1.50 per minute for calls via its overseas call Internet Protocol network.

A telecom-industry source said it would be difficult for CAT to reach bilateral interconnection deals with the three cellular operators when all three have paid and receive the high termination rate of about Bt1 per minute.

They are concerned that if Hutch can pay the low termination rate, it will continue launching heavy promotions, given that it does not have to be burdened with the high interconnection-charge rate and that will prompt heavy Hutch call traffic on their networks, the source added.

DTAC chief commercial officer Thana Thienachariya said the CAT termination rate was unacceptably low. A source at CAT, however, said the calculation was based on the agency's actual business cost.

Thana added that if the cellular operators and CAT could not reach satisfactory agreements on rates, the NTC would intervene and impose interim rates for them.

Recently, DTAC filed a complaint to the NTC that Hutch's call promotions dumped 33 million minutes of call traffic per week on its network, while DTAC sent back only 16 million minutes of traffic per week. The NTC has yet to make a ruling on the matter.

Hutch has about 80,000 customers, while DTAC has more than 16 million.

CP Group injects B3 billion in new funding into True Move

Bangkok Post (15 December 2007)

The CP Group will provide a three-billion-baht capital injection into the third-ranked cellular provider True Move.

The financing would come from Bitco, the holding company parent of True Move, through a rights offering of six billion shares at 0.50 baht each to CP.

Bitco is currently controlled by True Corp, the CP Group and Wirefree Services Belgium, a subsidiary of France Telecom.

True Corp would have the right to repurchase the Bitco shares on a cost-plus basis at any time over the next 18 months. Pricing for the buy-back clause is 0.53 baht per share if purchased within the first six months, 0.56 baht if exercised within six and 12 months and 0.59 baht if exercised between 12 and 18 months.

The share offering would increase CP's stake in Bitco to 23.92% from 0.76%, while True's holding would be diluted to 75.26% from 98.17%.

True Corp vice-chairman Athueck Asvanund said the capital injection would help relieve liquidity pressures for True Move. He said various options had been explored to ease working capital difficulties, including having the company take on additional loans.

But any additional borrowing would have to secure approval from existing creditors, a process complicated by the holiday season.

True Corp chief executive Supachai Chearavanont said the company would definitely exercise its right to buy back the Bitco shares from CP.

He said the financing would allow True Move to continue with its network and market expansion.

''True Corp is delighted that CP Group continues to show its long-term commitment to True Corp, and its confidence in the growth potential of True Move and the Thai mobile industry,'' Mr Supachai said.

True Move reported 11.2 million subscribers as of Sept 30 with 2.1 million new additions in the third quarter. The company had a market share of 22.7% at the end of the quarter, with a full-year market share target of 33%.

Mr Supachai said True Move was ''nearly cash flow positive'', and that the company's network covered 92% of the population.

True Move reported nine-month net losses of 1.15 billion baht, down from losses of 1.78 billion the same period last year. But the company reported a third quarter profit of 936.3 million baht, compared with losses of 760.5 million last year. Service revenues, including interconnection charges, were 8.4 billion baht in the third quarter, down 3.9% from the previous quarter but up 44% from the year before.

The company's current liabilities exceeded current assets by 12.45 billion baht as of Sept 30, with long-term borrowings of 27.91 billion.

True Move said the issue price of 0.5 baht per Bitco share was the same price used for a debt-to-equity conversion made last month, where Bitco converted 7.06 billion baht in debt owed to True Corp to shares.

Noppadol Dej-Udom, the deputy chief financial officer of True Corp, said the transaction helped strengthen True Move's balance sheet without incurring additional interest costs.
True shares closed yesterday on the SET at 5.95 baht, down 25 satang, in trade worth 148.39 million baht.

Upside still likely, unless SET falls below 826

Bangkok Post (17 December 2007)

World oil prices and shipping indicators should help SET, though some weakness is expected in bankingLook for a rising trend until Dec 28, to Jan 3, but with a possible interim dip down to Dec 25. The upside for Dec 28-Jan 3 time zone is not clear. This bullish scenario will become more likely if the SET energy index goes above 22,230. In any case, also have the stop-loss lines that we will mention below. In the big picture, the oil price is likely to trend higher, and there will be talk of the price going above $100 a barrel again. This will support the Thai energy sector. As to the Dec 28-Jan 3 time zone, it is based on the global trend, which should go up at that point. But note that this time zone will also be a resistance, if we do get there.

Less certain, but looking promising nevertheless, look for a rebound in the Baltic Dry Index to prop up the shipping sector and the SET, particularly if PSL closes above 28.25, along with TTA closing above 51.

As for PTT, a closing above 374 will be very positive. There are important barriers at 374 and 384-386, but once the 374 barrier is taken out, trading should continue up toward 412, despite a temporary stall at 386. On the downside, there is no easy signal to gauge the outcome, but a closing below 346 would be a sign of risk. In any case, a breakout above 374 looks more likely than a closing below 346. Look at chart C.

The stop-loss lines, on aiming up, are when the close of the SET is below 826, the SET50 below 599, TTA below 45.25, PTT below 346, and SCB below 80. Cut back not in one stroke, but gradually, if those signs happen, one by one.

And also cut back, if the Dow closes below 13,248, the S&P closes below 1,460, the Nikkei closes below 15,365, and the Taiwan weighted index closes below 7,987 (four out of four), because it would mean that our bullish assessment of the global trend could be wrong.

In particular, if the Taiwan weighted index closes below 7,987, it would be the beginning of a medium-term double top warning for the Asia Pacific, not only a short-term warning, based on the charts we discussed a few weeks ago.

The second warning would be when the Dow closes below 12,517. Fortunately, the Dow closing below 12,517 does not look very likely, which is why we still ask you to be in the market.

We leave you with this upside outlook and the stop-loss lines, because this column will not be updated here for the next two weeks. However, there will continue to be daily updates in the English Market Timing, www.kasikornsecurities.com.

The above-mentioned Dec 25 cycle has nothing to do with gazing at the political crystal ball to the Dec 23 election. It is a straightforward technical cycle, based on the bank sector, which may become weak again between now and Dec 25, before rebounding afterward. But note that Dec 25 will not be a threat, if SCB can close above the 84.50 resistance.

At this point, this column emphasises the global equities trend, and the rising oil price, over and above Thai politics. In politics, clouds are still likely to linger after the election, and the market is likely to look for the direction elsewhere.

Let us now go to the charts behind some of the above scenarios. In chart A, we see the oil price rebounding from the key cycle support, and the rising trend may continue until March, based on the upper vertical lines in the chart. And, the potential upside for the Nymex nearest oil futures contract is $107-116 a barrel, based on chart B.

Meanwhile, if the SET energy index closes above this week's resistance at 22,195, or next week's resistance at 22,230, it would signal that Thai energy stocks are reacting very positively to the rising oil price, especially if PTT also goes above 374. In such case, the upside for the energy index should extend to 23,300, or higher; in particular, and as an example, PTTEP should go up to test the 173-176 resistance. Its last closing was 158.

While the oil price may be on a rising zigzag until March, there is, however, a resistance against global equities, between Dec 28 and Jan 3, based on charts D and E. That means we may have to back off again, instead of aiming for an uninterrupted rising trend toward March. This will be updated, when this column returns early next year.

Charts D and E show a possible rising global equities trend until Dec 28 or Jan 3, but if we are wrong, there may be a significant interim dip down to Dec 25, based on the bank sector in chart F. The overall picture is depicted in chart G. Either which way, keep the stop-loss lines, as discussed above, while aiming higher.The next analysis column will be published on Monday, Jan 7. We wish all our readers a safe holiday and a happy and prosperous new year.

Anant Tantuvanich and Pattarawan Vangmingmart are with the Market Timing Department at Kasikorn Securities.

AIS says strategy will change

Bangkok Post (14 December 2007)

Company prepares for market saturation.

Advanced Info Service, the country's largest mobile operator, plans to shift its focus in 2008 to maintaining its revenue share rather than increasing subscribers.

The company aims to capture at least half of the 159 billion baht spent on telecom services per year. AIS plans to expand aggressively into fixed-base wireless broadband services (WiMax) and third-generation mobile services as part of its strategy to become an integrated fixed-mobile provider.

The company would spend at least 10.5 billion baht building an additional 2,000 base stations, plus three billion baht on marketing budget next year. In addition, AIS has allocated funds to develop third-generation (3G) and wireless broadband WiMax networks once the National Telecommunications Commission starts granting 3G licences. As part of its plan to reposition itself from a premium brand to a mass product, AIS announced a ''price subsidy'' approach to attract the emerging pre-teen segment and increasing its share from 30% to 40% of the market next year. Chief executive Vikrom Sriprataks said Thailand's mobile-phone penetration was expected to reach 100% in 2008 with 64 million subscribers, up from 52.3 million by year-end. Total spending by customers of all mobile operators is projected to grow by 5% to 159 billion baht next year, up from 151 billion baht this year. ''We expect to maintain our share at 50% of the overall spending market next year, after achieving the target this year,'' Mr Vikrom said without elaborating on figures. AIS expects to have 24 million subscribers in a total market of 52.3 million this year. The company had 19.5 million customers in a market of 40 million in 2006. Mr Vikrom said AIS planned to start providing voice over Internet protocol (VoIP) services next year on both mobile and fixed-lines. Mobile services on 3G, WiMax and high-speed downlink packet access (HSDPA) would also be seen next year. President Wichian Mektrakarn said AIS planned to spend at least 10.5 billion baht to build an additional 2,000 base stations at skytrain stations and in untapped tourist destinations, bringing its total to 14,500 bases next year. He also said that AIS would focus on five key areas in 2008: network quality, service excellence, variety of products and services, privileges and corporate social responsibility. Somchai Lertsutiwong, executive vice-president for marketing, said AIS was moving toward a third-generation ''integration marketing'' strategy next year, a combination of functional and emotional marketing approaches. ''We aim to become a 'best offer' brand next year with segmentation pricing plan approach and free trial services, targeting pre-teen and SMEs segments,'' he said, adding that AIS would opt to subsidise some tariff plans in the pre-teen market. Mr Somchai said AIS projects revenue from GPRS and Edge networks to grow by 40% next year, driven mainly by surging mobile internet demand. In contrast, he said, the voice-based market would grow only 1% while data communication services would increase by 20% next year. AIS has restructured its business functions by separating into three divisions: fixed-line under Advanced Datanetwork Communication and Super Broadband Network; mobile phone and 3G services under AIS and Advanced Wireless Network; and solutions under Wireless Distribution Service, Advanced International Network and M-Pay Co.

Shares of AIS (ADVANC) closed yesterday on the Stock Exchange of Thailand at 96 baht, unchanged, in trade worth 394.39 million baht.