State company CAT Telecom Plc will focus more on data-communication and network-leasing services to boost its revenues, following a decline in income from its main business of providing international calling services.

Acting president Phisal Jorphochaudom unveiled the strategy yesterday when the company announced its first-half financial figures for the first half of the year.

Its data businesses include the provision of transmission and data-communication networks, Web conferencing and e-auction solutions.

"Our data businesses have shown a growth trend," said Phisal.

He said the advent of the Internet calling business in Thailand also gives CAT a new opportunity to lease its international gateway network to Internet calling providers.

The state agency took in Bt14.74 billion in revenues for a net profit of Bt2.17 billion during the first half, down from Bt14.83 billion and Bt2.67 billion, respectively, for the same period last year.

Phisal blamed the decline on fierce price competition for international calling services.

The company's income for international calls accounted for 33 per cent of first-half total revenues, down from 40 per cent in the same period last year, while the revenue contribution of the data businesses rose to 24 per cent, from 19 per cent for the same period last year.

Concession fees contributed 33 per cent to CAT's total first-half revenues.

CAT also recorded the additional cost of paying a regulatory fee to the National Telecommunications Commission for the first time.

In the first six months, it paid Bt210 million for its licence fee and Bt150 million for number fees. The number fees included those of its private concessionaires, which CAT is obliged to pay in advance.

Phisal said CAT was aiming at total revenues of Bt33 billion this year, up from Bt30 billion last year, due to its plan to focus more on its data businesses.

The agency also has high hopes for its Code Division Multiple Access (CDMA) 2000 1-x mobile-phone service, which will kick off in October and achieve full commercial operations next January. The service will cover 51 provinces.

Chief marketing officer Marut Buranasetkul said CAT's mobile-phone service was expected to attract 60,000 new subscribers this year.

Chief finance officer Jirayuth Rungsrithong, who is in charge of the project, said the company would use low- and medium-cost CDMA mobile phones, in order to build up market share quickly. It has already talked with several suppliers for handsets with a price range of Bt2,000 to Bt10,000.

The CDMA cellular technology, which is the global rival of the predominant GSM system, enables fast data transmission. CAT will also offer CDMA data cards, which will enable laptop users to access high-speed wireless data and Internet services.

"We plan to join with makers of laptop computers to market bundled CDMA data cards and laptops jointly," said Jirayuth.

The state agency has yet to conclude negotiations with Hong Kong telecom operator Hutchison Telecom on plans to collaborate on combining their separate CDMA networks to provide a nationwide service.

Hutchison-CAT, a 25/75 joint venture between CAT and Hutchison Telecom, currently markets a CDMA cellular service in 25 provinces on a network leased from BFKT, a wholly owned subsidiary of Hutchison Telecom.

"The talks with Hutchison Telecom have yet to be finalised, but we're already providing roaming between the two networks," said Jirayuth.

Usanee Mongkolporn

The Nation