The state-enterprise administrator has suggested that TOT and CAT Telecom focus on what they do best, providing telecom network services, instead of competing in the retail cellular market.
Kulit Sombatsiri, deputy director of the State Enterprise Policy Committee, said the Finance Ministry had clearly established that TOT and CAT are to be the state's mechanism of providing and developing the country's basic telecom infrastructure.
Headded that both entities should focus on their areas of expertise. TOT has years of experience in providing a fixed-line telecom network, therefore it should mainly focus on further developing broadband and fibreoptic networks. CAT has been the primary provider of overseas call services, therefore it should focus on further enhancing this market. He said both state agencies should review their services to see if they can perform better than the private sector.
Kulit made the remarks during a seminar "The Survival Direction of the Country's Telecommunications Industry", hosted yesterday by the Senate's science and communications technology committee. The seminar is part of the committee's plan to find ways to help TOT and CAT improve their competitiveness.
Anant Worathitipong, vice chairman of the panel, said that TOT and CAT should make their minds up whether they want to concentrate on the country's network infrastructure or compete with the private sector. it would be difficult to be successful in both.
Poomjai Attanant, director of the Infrastructure Project Office of the National Economic and Social Development Board (NESDB), added that both agencies should also be working on plans on how to fully utilise the existing network assets worth a combined Bt300 billion after concessions end in the next few years.
TOT's senior executive vice president Kittipong Tameyapradit said TOT was ready to be a network provider. It has allowed interested companies to propose to lease its upcoming 3G network in greater Bangkok to provide retail services.
However, he want the government to amend the relevant operation and procurement regulations to enable TOT to work faster and operate on a more efficient basis. Kulit said TOT and CAT could develop their own flexible procurement regulations and submit them for approval of the Office of the Auditor-General.
CAT senior executive vice president Kittipong Mekvichitseang said CAT had been improving its operating efficiency to be able to compete with private competitors, but its main abstacle was inflexible procurement regulations.
He added that TOT and CAT might experience problems making profits if they limit their roles to merely leasing the networks. Therefore, both agencies should do both-provide the network services and compete in the retail cellular sector.
Weera Burankitcharoen, a subcommitee member of the Senate's science and communications panel, said the government should amend the regulations controlling TOT and CAT to allow them to fully compete with private companies.
It has to ensure that the appointment of their board members and chief executives is free from political interference, he added.
Tuesday, October 20, 2009
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