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Published on January 12, 2008

 CAT Telecom will set up a joint venture with private communications-system provider E-Commerce Business (ECB) to provide power-line-based broadband-Internet service.

A CAT source yesterday said the company would put up capital of Bt10 million and invite the Provincial Electricity Authority (PEA) to be another strategic partner.

CAT president Phisal Jorphochaudom said the company wanted to hold a 49-per-cent stake in the joint venture but declined to elaborate. He added that CAT would propose a business model for board consideration soon.

The source said CAT was considering the right shareholding percentage in the joint venture to prevent it from becoming a state enterprise.

If CAT owned 49 per cent, and later the PEA took a major stake, their combined shareholdings would exceed 51 per cent. In that event, the joint venture would be classed as a state enterprise.

The source also said CAT wanted the joint venture to have operational flexibility.

Both CAT and ECB signed a memorandum of understanding yesterday giving official approval to their teaming up to explore the provision of service to areas where fixed-line service was unavailable.

Their collaboration started last November and will end in October 2009. They will tap demand in Bangkok first before gradually expanding upcountry.

Both firms have been jointly providing broadband power-line service for Narai Property's Parkland Residence project since last year.

To access a broadband power line, users only have to connect a broadband modem to their computer and plug the modem into an electrical socket.

Currently, the service charge is Bt580 per month for 1 megabit per second service and Bt900 per month for 2Mb.

ECB president Winit Kamsomboon said the per-head investment cost for power-line broadband was cheaper than conventional broadband-network technology.

Currently, there are only one million broadband-Internet subscribers in Thailand. The three main players are True, TOT and TT&T.

CAT must explore the new business opportunities to increase revenue and cope with tougher competition in its main business of international telephone services.

The National Telecommuni-cations Commission has already granted licences to private telecom operators to offer international-call services in competition with CAT.

 Usanee Mongkolporn

 The Nation