TT&T, Thailand’s largest provincial fixed line operator, has announced a restructuring plan for 2008 including IPOs at three of its subsidiaries, reports the Bangkok Post. TT&T plans to list Triple T Broadband, TT&T Subscriber Services and Triple T GlobalNet on the Stock Exchange of Thailand (SET) and the MAI, a separate exchange from the SET where smaller fast growing companies are listed, with the aim of raising capital of at least THB2 billion (USD65 million). The company plans to freeze all new investment in core provincial fixed line operations to focus on services that incur lower licence costs. TT&T’s fixed line services provided under its build-transfer-operate agreement with state-run telco TOT requires it to pay 43% of revenues to the incumbent, the highest rate amongst all telecoms operators in the country. Subsidiaries under the TT&T umbrella offering fixed and wireless broadband, VoIP, IPTV, international internet gateway (IIG), international direct dialling (IDD) and data communications services pay only 7% of their annual revenues (a 3% licensing fee and a 4% universal service obligation), under licences issued by the regulator, the NTC.
The strategy is aimed at increasing the group’s revenue by 20% to THB8.7 billion in 2008, and help the parent company earn a net profit in 2009 after taking losses since 2003. TT&T has forecasted turnover of THB7.3 billion this year, with a narrowing net loss. However, according to the Post, in the first nine months of this year it reported a net loss of THB1.4 billion, compared with losses of THB573 million in the same period of 2006.