CAT Telecom Plc has expressed interest in developing an underwater fibre-optic network linking Dawei in eastern Myanmar with southern Thailand to support internet service for the Dawei project.
Somchai Manopinives (left), an executive vicepresident of PTT Exploration and Production Plc, shakes hands with Surapon Sanguansilp, a CAT Telecom senior executive vicepresident, after signing a contract for the use of CAT Telecom’s underwater fibre-optic network to manage PPTEP’s three oil platforms in the Gulf of Thailand. THANARAK KHOONTON
However, Surapon Sanguansilp, a senior executive vice-president, said the state agency's investment in Dawei awaits a clear decision by the Myanmar government.
"It's not yet clear who will be awarded the project. They've indicated it might be a company in that country or a Thai operator including Italian-Thai Development," he said, referring to the Thai contractor that has been awarded the concession to develop a special economic zone and deep-sea port in Dawei.
A preliminary study showed 800 kilometres of fibre optics would need to be laid from Dawei to CAT's base station in Satun province at a cost of 1.2 billion baht.
Mr Surapon said CAT is drafting an investment budget of 7 billion baht for 2014, almost double the 4 billion earmarked for this year.
The increase stems mainly from the Fibre to the Home (FTTH) internet broadband project, which is expected to cost up to 3 billion baht.
Mr Surapon said by using fibre-optic cables, FTTH will have a minimum capacity of 20 Mbps compared with the 10-15 Mbps of copper cables. The FTTH project will start service in 2015.
CAT has 30,000 internet clients, mainly in 10 major provinces including Chon Buri and industrial estates along the Eastern Seaboard.
The company hopes to increase that number by two-thirds this year, said Mr Surapon.
Meanwhile, another senior executive vice-president, Viroj Tocharoenvanith, said CAT has earmarked 680 million baht to double the capacity of its data centre this year.
The move is aimed at capitalising on surging mobile data traffic once full commercial third-generation service begins and supporting the government's G-Cloud project and state agencies.
The Kasikorn Research Center predicts Thailand's cloud computing market will grow between 16.7-22% this year for a market value of up to 2.3 billion baht.
Last year it was valued at 1.9 billion baht, up by 10.6% from 2011.
Mr Viroj said the new investment will be used to expand capacity at its two data centers in Chon Buri and Nonthaburi provinces.
CAT expects IT-based service revenue from its cloud and data centres will surge to 3 billion baht by 2018 from an expected 250 million baht this year.
"IT business will offer recurring revenue in the near future, offsetting declining concession revenue," he said.