CAT Telecom reduces internet gateway fees

13 Dec 2006

CAT Telecom will cut fees for its international internet gateway (IIG) services by up to 63%, as a reaction to an influx of new competition. The Thai state-run telco’s board yesterday approved a rate reduction of between 18% and 63%, including an average 30% cut in IIG costs for ISPs. Until recently CAT had a monopoly on IIG provision, but the National Telecommunications Commission decided in January 2006 to allow private firms entry into the market. In May it announced the award of IIG licences to Advanced Datanetwork Communication (ADC) and True Corp. ADC, which offers broadband services including multimedia content, is a joint venture of the country’s mobile market leader Advanced Info Services (AIS) and state-run fixed line telco TOT Corp, while retail broadband market leader True offers a full range of fixed and mobile telecoms services. The following October the regulator awarded another IIG licence to ISP CS Loxinfo, Thailand’s largest dial-up ISP. The IIG licences are ‘type 2’ concessions (for operators with or without their own networks) allowing the leasing of international bandwidth from foreign operators to provide services to local ISPs via CAT’s domestic links. A group of nine Thai ISPs, including Jasmine Internet, also announced a plan to apply for a joint IIG licence.

Thailand, CAT Telecom