Total Access Communication (DTAC) has set aside Bt6 billion for capital expenditure this year, the same as last year, to maintain a high free cash flow for its investment in third-generation wireless broadband service.
CEO Tore Johnsen yesterday said the amount was in line with forecasts there would be only 3 million to 4 million new mobile-phone subscribers this year in the market. DTAC is expected to add more than 30 per cent of them to its network.
DTAC's capital expenditures in 2008 amounted to Bt11.3 billion.
Telecom industrialists believe cellular operators are unlikely to spend heavily on expansion of their existing network at this time, as their concessions will soon expire. They operate under "built transfer operate" contracts of the state telecom agencies.
Johnsen said DTAC wanted to keep the cash flow for further developing 3G service on its existing 850-megahertz spectrum and also for future investment in 3G service under the 2.1-gigahertz licence of the National Telecommunications Commission, which are yet to be issued. He expects the watchdog to grant the 2.1GHz licences at year-end.
DTAC has provided 3G service on 850MHz spectrum on a trial and non-commercial basis in the greater Bangkok area but has reportedly yet to invest in proceeding full steam ahead as it awaits permission for a commercial launch from the committee founded under the Public-Private Joint Venture Act.
In a filing submitted to the Stock Exchange of Thailand on Monday, DTAC said it expected to generate cash flow of Bt16 billion this year through continued margin improvement and cost-efficiency efforts. It posted a record-high operating cash flow of Bt14.3 billion last year, while its total customer base now stands at 19.7 million.
Last year's full-year service revenue, including interconnection charges, was Bt64.7 billion, down 2.9 per cent from 2008.
Its net profit declined 11.5 per cent to Bt6.6 billion, due mainly to the economic and political uncertainty.
Johnsen said DTAC had targeted 7-9-per-cent revenue growth this year.
SMART PHONES
DTAC this year will also focus on promoting smart phones, especially the much-hyped BlackBerry.
It has already sold 35,000 BlackBerry smart phones after its recent launch of the devices.
Chief commercial officer Thana Thienachariya said the operator would launch more new smart-phone models but declined to comment when asked if DTAC planned to launch iPhones here.
At present, True Move is the exclusive authorised cellular service provider for 3G iPhones in Thailand.
Leading cellular operator Advanced Info Service has targeted sales of 10,000 BlackBerry smart phones a month this year.
