True Corp announces key restructuring of its operations

Suphachai said that True was keen to explore telecom and media business opportunities in the region, particularly in Myanmar. The company will focus more on its core businesses – broadband Internet, wireless, and media content – after the group’s business restructuring is complete.

He added that when the company finally starts moving to expand its business in the region, it would seek a strategic partnership.

"It [the infrastructure fund] is a natural step in our recapitalisation process. After we’ve obtained the 2.1GHz spectrum licence, we will launch our plan to develop the infrastructure fund," he said.

The company’s board last month approved True’s plans to set up the infrastructure fund to raise no less than Bt70 billion, aimed at repaying debt as well as financing future business expansion. It is in the process of applying to the Office of the Securities and Exchange Commission to get approval for the fund.

To raise the fund’s capital, the company plans to sell its telecom towers, core fibre-optic cable networks, broadband networks, and the rights to revenue from equipment rental. It will also acquire a 33-per-cent stake in the fund.

The company’s board last month also approved the Bt5.4-billion sale of ordinary shares in eight non-core business subsidiaries to Thana Telecom Corp, wholly-owned by True parent, Charoen Pokphand. This would allow True Corp to focus on its core business. Some of the proceeds from the sale will go towards repaying company debt.

True will propose the infrastructure fund and the sale of shares in non-core subsidiaries at a shareholder’s meeting scheduled for September 12.

Suphachai reaffirmed that the arbitration dispute between CAT Telecom and TrueMove on the ownership of some telecom towers under the state agency’s concession, would not affect the process of establishing True’s infrastructure fund.

A key part of the infrastructure fund’s creation is True’s plans to sell telecom infrastructure assets to the fund, including 13,000 telecom towers. TrueMove has 7,000 telecom towers under a CAT concession, of which 4,500 are listed in the arbitration dispute. True itself has 6,000, while True subsidiary BFKT (Thailand) has another 1,400 towers.

True’s broadband Internet currently has around 1.7 million subscribers, while TrueVisions customer base is around 2.3 million. True’s cellular-service flagships are TrueMove, Real Move, and Real Future.

Real Move has about 4 million subscribers. Real Future, which holds the 2.1GHz licence, will be more aggressive in acquiring subscribers.

The National Broadcasting and Telecommunications Commission granted the 2.1GHz licence to Real Future last December. The concession of TrueMove, which has around 17 million customers, will expire on September 15.

True reported a consolidated net loss of around Bt3.16 billion for the second quarter of this year, up from a loss of Bt2.17 billion over the same period last year, due in part to an increase of interest rates, selling and promotional expenses.