Samart Telcoms will provide the working capital.

The subsidiary will provide a Voice over Internet Protocol (VoIP) call service, ICT outsourcing, sales equipment, computer system hardware and software, and installation and maintenance for turnkey solutions of the mobile-phone network and fibre-optic systems.

Samart Telcoms is a subsidiary of Samart Corp, whose businesses in Cambodia include air-traffic-control operator Cambodia Air Traffic Services and an upcoming power plant.

Samart Corp pulled out of the highly competitive cellular-telephone business in Cambodia in 2005 by divesting its 49-per-cent stake in Cambodia Samart Communication to partner Telekom Malaysia.

Samart Telcoms posted consolidated revenues of Bt487.4 million and net profit of Bt54 million in the first quarter, against Bt583.8 million in revenues and a Bt83.4-million net profit in the same period last year.

The company attributed the lower profit to a decrease in service revenues from its rural public-telephone project, which expired last year. Though the cost of sales and services fell by Bt63.5 million or 16.8 per cent from the same period last year, sales and administrative expenses expanded by Bt20.2 million - mainly from salaries and information-technology service fees.

However, another Samart Corp affiliate, Samart I-Mobile, posted a sharp increase in consolidated net profit for the first quarter at Bt134.73 million, from Bt112.63 million in the same period last year.

In the statement to the Stock Exchange of Thailand, mobile-phone distributor Samart I-Mobile attributed the better financial results to its higher gross profit margin: from 7.03 per cent in the first quarter last year to 8.72 per cent this year, due to the increased sales portion contributed by i-Mobile handsets.

The company also recorded a foreign-exchange gain of Bt9 million in the quarter, while its sales and administrative expenses decreased by Bt7 million - or 2 per cent - and interest expenses dropped by Bt16 million.