Thailand's TOT Seeking Funds for 3G Rollout

Published on: 1st Jan 1970: 1:33am

Thailand mobile operator, TOT is preparing to raise funds for its 3G network from outside debt sources if the government refuses to act as a loan guarantor, said president Varut Suvakorn. The company has already had to modify its plans for a 3G deployment after the State Enterprise Policy Office (SPO) asked for more details.

The local Bangkok Post reported that the SPO should proceed with its 3G plans, but that the Finance Ministry should not to guarantee the 24-billion-baht loans for the project.

TOT is planning to build a network and then lease capacity to the other networks in the country. It does not plan to sell direct to customers itself.

The newspaper reports that company's original 3G business plan involved constructing 5,220 base stations and an initial rate of return of 20.1% with revenue increasing to 10 billion baht a year and break-even coming in the seventh year. The modified plan brings forward break-even to the fifth year.

Although the TOT will not be able to rely on the government to guarantee its loans, there will still remain an implicit presumption that as the company is owned by the state, that its debts would be underwritten by the government in the case of default.

The regulator plans to auction 3G licenses later this year.

On the web: Bangkok Post

 

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