Desperate TOT can't afford to turn its back on possible AIS deal

Corporate February 25, 2014 00:00

By Usanee Mongkolporn
The Natio

TOT is still eager to become the Advanced Info Service group's strategic partner on the 3G-2.1GHz wireless broadband service, despite the People's Democratic Reform Committee's call for consumers to boycott AIS products and services linked to the Shinawat



“We’ve never been involved in any politics,” TOT president Youngyuth Wattanasin said.
“As a state enterprise, we have to seek ways to survive since we earn no telecom concession revenue any more.”
Youngyuth said TOT might face more losses if it had no new revenue source soon.
This year TOT is expected to post a loss of Bt5 billion with revenue of Bt31.7 billion.
TOT is in talks with AIS on a possible deal to allow AIS to utilise and roam with the state agency’s 15MHz bandwidth of 2.1 GHz, which is expected to deliver Bt4 billion in revenue a year to the state agency. 
Another option is for TOT to allow AIS to use only 5MHz of 2.1GHz, which would generate Bt800 million in revenue a year for TOT.
Yesterday TOT celebrated its 60th anniversary. 
This year marked the first year it had to transfer all concession revenue to the state coffers as obliged to by the 2010 Frequency Allocation Law. 
Last year TOT made a Bt4.1 billion profit. 
Without the concession revenue, it would have posted a Bt13.99 billion loss.