Chiang mai launch for CAT's CDMA cellular network

Chief finance officer Jirayuth Rungsrithong said last week that after Chiang Mai the mobile-phone service would be launched in 14 major provinces - Chiang Rai, Phitsanulok, Nakhon Sawan, Phrae, Khon Kaen, Ubon Ratchathani, Udon Thani, Maha Sarakham, Surat Thani, Phuket, Songkhla, Trang, Nakhon Ratchasima and Nakhon Si Thammarat.

The state enterprise's Code Division Multiple Access 2000 1-x network covers 51 provinces.

Over the next three years, CAT will spend Bt800 million each year to expand the network and Bt100 million this year and Bt100 million in each of the following two years to market the service.

It targets CDMA service revenue of Bt1 billion per year.

Hutchison-CAT Wireless Multimedia, CAT's joint venture with Hong Kong's telecom giant Hutchison Telecom, has been providing the cellular service under the Hutch brand on a separate CDMA network in 25 provinces under CAT's marketing contract.

Hutch posts annual revenues of about Bt700 million from some 1 million subscribers.

CAT and Hutch are in talks about the possibility of jointly marketing their two CDMA networks.

CAT has pinned its hopes on the CDMA service to be its new revenue stream to offset the decline in its mainstream overseas-call business, which is facing intensifying competition. CDMA boasts a fast data transmission speed.

CAT posted revenue of Bt24.65 billion in the first six months of this year, up from Bt22.69 billion in the same half last year, while its operating revenue went down to Bt9.89 billion from Bt10.52 billion.

Its concession revenue from fees paid by Total Access Communication, Digital Phone and True Move rose to Bt14.76 billion from Bt12.17 billion, while corporate tax eased to Bt1.94 billion from Bt2.13 billion.

Net profit slipped to Bt4.58 billion from Bt4.67 billion.

Its overseas-call revenue plummeted to Bt3.55 billion from Bt4.97 billion, while its data-communication revenue soared to Bt4.09 billion from Bt3.92 billion.