True Corp earmarks Bt43 billion for two-year broadband expansion

True Corp will spend Bt43 billion over two years to expand its fixed and mobile broadband networks to strengthen its telecommunication business and support the government’s “digital economy” policy.

Suphachai Chearavanont, chief executive officer, said yesterday that this was the milestone investment of the group since its rebranding from Telecom Asia to True Corp in 1992. It will also be part of the private sector’s backing of the government’s move to create a digital economy.

This might not be the group’s biggest capital outlay ever but it is a big change to push Thailand to the digital forefront in the Asia-Pacific region. 

Half of the funds would come from operating cash flow and half from its TRUEGIF telecom infrastructure fund.

Of the Bt43-billion budget, Bt33 billion will go to expanding its fibre to the x broadband network to cover 10 million households nationwide in 2016 from the present 2 million.

“Our FTTx network will cover 90 per cent of Bangkok and metropolitan areas or about 4 million households by 2016,” he said.

Currently True has 2,000 fourth-generation cellular base stations in Greater Bangkok and 14 major provinces. The other Bt10-billion investment will expand coverage to 60 per cent of the population by February and 80 per cent by the second quarter of next year, when it will have 9,000 4G base stations installed nationwide.

“The fixed broadband and mobile broadband networks will make us No 1 in Internet broadband services. Currently we are No 1 in 3G and 4G services with some 800,000 4G users, which is expected to reach a million at the end of this year,” Suphachai said.

True forecasts 7 million 4G mobile-phone users in the market next year, of which it will take a major share. At present there are about 4 million 4G handset users, of which a million are with True.

Greater Bangkok and other major cities will consume 10 times as much data in five years as they do now. Greater Bangkok should be equivalent to Singapore in ICT (information and communications technology) infrastructure, so True believes it should take part in making this happen as a leading broadband player in Thailand.

True expects to have 2.2 million broadband Internet users at year-end, up from about 2 million now. There are only 5 million broadband Internet subscribers in all of Thailand.

True group has outstanding debt of Bt43 billion remaining after paying back bank loans of Bt56 billion. It has cash on hand of Bt14 billion. 

Suphachai said True planned to offer a possible strategic partnership model to TOT.

“We are eyeing joining hands with TOT for infrastructure sharing to help the country reduce costs for redundant telecom networks,” he said.

TOT has approached local and foreign telecom operators about proposing models to become its business partner.