TOT could cut 35% of workforce in restructuring programme

17 Jul 2006

Thai state-run telco TOT Corp has been advised by consultants to axe around 7,000 of its 20,000 staff over the next three years as part of a streamlining programme aimed at lowering costs and boosting productivity. The operator also plans to form a new wholly owned subsidiary to provide telecoms services, whilst the parent company will continue to own the fixed line network, in a move designed to reduce regulatory fees. Under the plan TOT’s new services arm will apply for a Type 1 licence (for operators without their own networks), meaning it will pay an annual licence fee of 3% of revenues but not a universal service obligation (USO) fee which stands at 4% of yearly turnover. TOT currently has a Type 3 licence as a services provider and network operator, making it liable for licence, numbering, spectrum and USO fees. The company also plans to establish additional subsidiaries to take over business lines such as internet services and back-office billing.

Thailand, TOT