TT&T’s losses mount up under pressure from competition

23 Feb 2006

Thailand’s largest provincial wireline network operator TT&T has posted a net loss of THB1.75 billion (USD44 million) for 2005, compared to a loss of THB204 million (USD5 million) the year before. The company said that intense price competition from mobile operators has affected its income, forcing down the monthly average revenue per user (ARPU) for its fixed line services to THB433 per line last year, from THB484 in 2004. Operating revenues in 2005 decreased by 4% to THB6.516 billion from 6.763 billion the previous year, whilst revenues from traditional fixed line telephony services stood at THB3.374 billion, down 13% from THB3.857 billion, which the company again attributed to competition from the mobile sector. Total operating expenses for the year increased by 9% to THB6.519 billion, up from 5.979 billion. Turnover at TT&T’s public payphone business declined in 2005 as rival public telephone operators in provincial areas rolled out more services. The value of the telco’s shares plunged 5.73% on the back of yesterday’s reported losses.

Thailand, Triple T Broadband (3BB)