Foreign firms keen on partnerships with TOT
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AT LEAST four foreign telecom operators - from Britain, Australia, South Korea and China - are keen to talk with TOT about possible strategic partnerships, according to the agency's acting president, Thanwa Laohasiriwong.
But he declined to specify their names, just saying that TOT would meet with a telecom operator from Australia on November 18 to talk about a possible alliance.
A TOT source said the Australian operator was Telstra.
Thanwa said TOT was open to considering any local or foreign alliance and an unlimited number of business partners, and would consider the best proposals that would enhance TOT’s strength and performance.
Last week TOT approached five private major telecom operators about forming a partnership with any of its six core businesses. The state enterprise sent letters to Advanced Info Service (AIS), Total Access Communication (DTAC), True Corp, Samart Corp and Loxley, following the policy of its new board to seek strong strategic allies.
Executives of these local operators said they were evaluating TOT’s proposal.
Thanwa said TT&T recently proposed a partnership with TOT.
He added that TOT aimed to complete its partnership negotiations in time to present the deals for the board’s consideration by next month. If the board approves their proposals, TOT will coordinate with the government on the regulatory issues to facilitate the partnerships.
Thanwa said TOT had appointed committees to talk with all of these companies on possible partnerships. They are free to propose any partnership models.
TOT needs strong business partners as it faces financial difficulties. Both TOT and CAT Telecom began to pass all of their annual concession revenue, which had been their main source of income, to the state last December as obliged by the 2010 Frequency Allocation Act.
TOT’s core businesses are telecom infrastructure, telecommunication towers, international gateways and submarine cables, mobile phone service, fixed telephone service and broadband Internet, and information-technology services.
TOT made revenue of Bt22.6 billion in the first half of this year and with losses of Bt1.29 billion. It expects a full-year loss of B5 billion, but the board is seeking ways to reduce that figure.
TOT holds the AIS concession, which will expire in September 2015. The state agency has partnered with Samart and Loxley to provide third-generation wireless broadband service on its 2.1-gigahertz spectrum.
