TOT to select strategic partner by August from five suitors
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THE state telecom enterprise TOT expects to pick a strategic partner by August.
Five telecommunications companies have submitted second-round proposals for a partnership – Advanced Info Service (AIS), True Corp, Loxley, Samart Corp and Mobile LTE.
Nattawut Amornvivat, spokesman for TOT’s board, said yesterday that the agency’s adviser, Deloitte, had started the selection process and would propose to TOT the best telecom out of the five.
TOT might end up with more than one strategic partner since it has six core businesses, he said. They are telecom infrastructure, telecom towers, international gateways and submarine cables, mobile-phone service, fixed-line telephone and broadband Internet service, and information-technology services.
TOT needs a strong ally to improve its financial performance.
Both TOT and the other state telecom enterprise, CAT Telecom, in December 2013 began to pass all of their concession revenue, which had been their main source of income, to the state, as mandated by the Frequency Allocation Act.
TOT forecasts a huge loss of about Bt1 billion this year after posting a profit of Bt1.95 billion last year.
AIS is interested in five businesses with TOT – mobile, towers, other infrastructure, international gateways and landline broadband. True’s proposal covers six businesses, including Internet data service.
Mobile LTE, a new player, has offered to help provide third-generation mobile broadband service on the 2.1-gigahertz spectrum as a mobile virtual network operator (MVNO). It targets 12 million to 15 million subscribers. It is ready to invest in a 4G network for TOT and will allow TOT to hold 25 per cent of the company.
It also guarantees TOT a return of about Bt2.5 billion per year for five years from the MVNO partnership. It also plans to join with AIS to help it develop the business under the new partnership.
