TOT must sharpen up 3G business plan

12 Jun 2009

Thailand’s State Enterprise Policy Office has issued a directive to state-owned telco TOT ordering it to produce a clearer financial plan for its proposed national 3G mobile network operating business. According to the Bangkok Post, TOT must submit a new business model, showing clearly the revenue generating structure and fully accounting for risks, to the Information and Communication Technology (ICT) Ministry before the plan returns to the cabinet for endorsement. Ministers had earlier approved the project but asked the ICT ministry for more details on its financing. TOT president Varut Suvakorn said a revised plan could be finished by the end of this month. TOT’s earlier 3G business plan for rolling out wholesale and retail W-CDMA/HSDPA network services envisaged breaking even in seven-and-a-half years by targeting an internal rate of return of 20.1%, with revenue increasing by THB10 billion (USD295 million) each year. It was calculated that investment of THB29 billion was needed between 2008 and 2012 to deploy 5,220 3G/3.5G base stations nationwide – 2,500 of them in the Bangkok area and 2,720 in the provinces.

Thailand, Thai Mobile, TOT