TOT sees profit turnaround in first four months, targets 2015

It made a profit of Bt152 million in the first four months of this year from tightening its costs, compared with a loss of Bt1.747 billion during the same period last year, said TOT chairman General Surapong Suwana-adth.

Total revenue in the first four months was Bt12.2 billion, down from Bt15.8 billion in the same period of last year. However, expenses declined by 26 per cent to Bt10.659 billion thanks to strict cost controls.

TOT and CAT Telecom have had to transfer concession revenue to the state since December, 2013, under the Frequency Allocation Act.

"We’re quite pleased with the financial results when considering that the [new] TOT board has only been here for nine months," Surapong said.

However, he admitted that TOT had yet to see outstanding financial results. But he is confident that TOT’s 2015 performance will be better overall, as the state agency is expected to complete its strategic partnership deals this year.

TOT is analysing partnership proposals submitted by several private telecom operators, and might secure a deal by next month. Proposals have been submitted by Advanced Info Service (AIS), True Corp, Samart i-Mobile, Loxley and Mobile LTE.

TOT is aiming for revenue of Bt33.4 billion this year, of which more than 60 per cent will be from its fixed-line telephone and broadband Internet service, the latter contributing about Bt12 billion.

Surapong said that since TOT is one of seven state enterprises under rehabilitation plans, the board was focusing on how to turn around the whole organisation in compliance with the government’s "digital economy" policy.

This year TOT plans to expand its broadband network to cover 7,255 tambons nationwide with speeds of a minimum of 100 megabits per second. The project is awaiting approval by the Information and Communications Technology Ministry. Under the plan, TOT will invest Bt30 billion over seven years, beginning in the fourth quarter of this year.

Surapong said TOT was still hoping to keep the rights to use the 900-megahertz and 2.3-gigahertz spectra to provide mobile broadband services after the 900MHz concession it granted to AIS expires this September. The National Broadcasting and Telecommunications Commission plans to reclaim the 900MHz spectrum and put it up for auction late this year.

TOT is also examining AIS’s network assets under its concession contract that should be transferred to TOT after the concession ends, according to the built-operate-transfer basis.