TOT board orders 3G plan revamp
TOT's board yesterday ordered management to drastically revise their 3G cellular broadband strategy to avoid huge losses.
Chairman Panthep Chamrasromran said the new plan would be prepared for review by the board of directors next month.
TOT is expected to generate 3G service revenue of Bt718.24 million this year, far below its target of Bt2.59 billion. Next year TOT targets Bt7.42 billion. If it falls short of that, it will be unable to service its bank loans.
Last May, TOT secured a Bt14.71-billion loan from a consortium led by Bank of Ayudhya and United Overseas Bank (Thai) to finance the 3G project. It has pinned its hopes on the project as its new revenue stream. It reportedly has to use its cash flow to repay the loan.
TOT’s 3G revenue is also unlikely to be enough to cover loan expenses next month, which indicates that it is expected to fail to reach the target for 3G SIM card sales, Panthep said.
TOT has about 200,000 3G customers after launching the service in December 2009.
The board also asked the 3G business committee to adjust the plan to make it more attractive for companies to join TOT in providing the 3G service on its network, he said.
The state enterprise currently has five partners providing 3G service on its network on a renewable contract basis.
