Fibre-optic delay to hit CAT's broadband income
CAT Telecom is expected to miss its Bt7.5-billion broadband revenue target this year, logging only Bt6.5 billion, because of the delay in launching its fibre-optic On Net service in 10 provinces plus Greater Bangkok.
Sompol Chanprasert, senior executive vice president for the broadband business, said CAT had originally expected the On Net project in 10 provinces and the same project in Greater Bangkok to contribute Bt500 million each in revenue.
It is hoped that the project in 10 provinces can get off the ground in the fourth quarter so that it can bring in about Bt200 million in revenue for the state enterprise this year.
The previous government gave the green light for CAT to develop the On Net project in Greater Bangkok with a budget of Bt6.5 billion. However, later the National Economic and Social Development Board suggested CAT start with a smaller pilot project costing Bt1.2 billion.
Since the Information and Communications Technology Ministry will have to submit the revised project for Cabinet approval, it is unlikely to begin this year.
CAT’s broadband service consists mainly of data communications, with revenue of Bt5 billion per year, and Internet access, with about Bt1 billion a year. Its broadband revenue reached Bt2.7 billion in the first five months of this year.
CAT is also installing additional submarine cables worth Bt2.7 billion in the Gulf of Thailand to provide data communication services to conglomerates. Construction is expected to be completed this year.
