Information and Communications Technology Minister Sitthichai Pookaiyaudom had earlier mentioned only combining the boards of CAT and TOT but during his meeting with the boards of the three state enterprises included Thailand Post in the plan.

The move is part of the ministry's policy to reduce overlapping investment and improve the competitiveness of the agencies under the ministry.

Sitthichai said the boards should submit the merger plan to him as soon as possible.

Although Thailand Post's main business of postal services has little to do with telecommunications, its nationwide network of post offices could host the service and sale points of TOT and CAT, he said. Previous governments wanted to fold TOT and CAT into one business but that plan died over protests by their employee unions. Sitthichai came up with the idea of joining only their boards.

TOT was also asked to analyse more deeply its planned 3G broadband cellular network, which would need a huge investment.

"Thailand is not a technology exporting country but an importing one, so the state agency has to think carefully of the project's commercial viability," Sitthichai said.

TOT has planned to spend about Bt10 billion on rolling out a 3G network and leasing it to private cellular operators.

With CAT, TOT owns Thai Mobile, which has rights to the 1900 spectrum that can be used to develop 3G services.

TOT has long had designs on taking over Thai Mobile and said yesterday that it had already reached an agreement with CAT to pay Bt2.4 billion for CAT's 42-per-cent stake in the joint venture.

TOT will pay CAT for the Thai Mobile shares in instalments over five years with no interest. TOT will also shoulder Thai Mobile's debt of Bt3 billion.

Sitthichai ordered the three state agencies to amend their budget regulations so that board approval is required for projects of Bt10 million and up, a change from Bt50 million.

The revision will take effect next month as part of the minister's attempt to beef up procedures for checking the state agencies' spending and preventing any corruption.

Usanee Mongkolporn

 The Nation