The CNS, TOT Plc, CAT Telecom Plc and the Information and Communications Technology Ministry, which met yesterday, concluded a holding company would be set up to manage the networks of TOT, CAT, their private concessionaires, the Electricity Generating Authority of Thailand, the Provincial Electricity Authority and the Metropolitan Electricity Authority. The power agencies own the fibre-optic cables and lease them to the telecom providers.

"We want to create a telecom network pool as part of the plan to maximise the networks for the country's benefit and reduce the redundancy inherent in state investment in the networks, as well as enhancing national security," CNS chairman General Sonthi Boonyaratglin said. He said the plan would ensure all Thais have access to telecom services.

TOT director Vuthiphong Priebjrivat said the holding firm would negotiate with the three state electricity enterprises to acquire their telecom networks.

The three state electricity authorities won licences from the National Telecommunications Council (NTC) to operate the telecom network-leasing service for 20 years.

The CNS move is in line with the TOT's recently announced plan to become the "national network provider", taking over the network management rights of its three major private telecom concessionaires, Advanced Info Service, True Corp Plc and TT&T Plc.

TOT wants to convert their concessions and get them to lease their networks from it. TOT granted the concessions to the private telecom operators on the Build-Transfer-Operate system, but has no right to manage their networks.

Vutipong said TOT and CAT would form a committee  to establish the holding firm.

Telecom experts and industrialists have questioned the TOT's ability to manage the networks of the private telecom operators and secure expansion funds.

They said the plan smacked of nationalisation, which would hurt foreign investors' confidence.