TT&T’s losses mount up

3 Apr 2008

Privately owned Thai telco TT&T’s consolidated revenues in 2007 rose by 8% to THB6.932 billion (USD222 million), largely driven by broadband sales, according to a company release. Despite the turnover increase, the operator recorded a net loss of THB2.028 billion, almost double the loss of THB1.08 billion recorded in 2006. Moreover, the earnings before exchange rate and income tax gains worsened year-on-year from a net loss of THB2.372 billion in 2006 to a net loss of THB2.606 in 2007 due mainly to the decline in revenue from fixed line voice services and start-up operating costs of new services which are expected to generate a large proportion of revenue in the future. TT&T had 1.23 million local fixed lines in service at the end of December 2007, down from 1.24 million a year before. In addition to its core traditional fixed line services in provincial areas, which are offered via a build-transfer-operate (BTO) concession with state telco TOT, TT&T has established a number of subsidiaries which operate under their own licences issued by the National Telecommunications Commission (NTC). TT&T Subscriber Services, which was granted a facilities-based ‘Type 1’ internet licence in August 2005, provides ‘Maxnet’ DSL broadband internet access services with a subscription base of 200,000 customers at the end of 2007, whilst TT&T indirectly serves additional DSL subscribers via other units including Triple T Broadband, an unconsolidated division in which the telco has reduced its stake to less than 10% for capital funding purposes. Another unit, Triple T Global Net was granted internet licence ‘Type 2’ in November 2006, allowing it to launch international internet gateway (IIG) and national internet exchange (NIX) services in April 2007. The group received a ‘Type 3’ (non-facilities based) telecoms licence in November 2007 under which it launched international (ILD) calling service ‘102’, and was granted further ‘Type 3’ concessions for various additional telecoms services the following month, which it intends to use to expand its product range soon.

Thailand, Triple T Broadband (3BB)