CAT to merge mobile assets into one unit
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CAT to merge mobile assets into one unit

CAT Telecom is consolidating all its mobile-phone network assets into a single business unit to pave the way for development of the government's telecommunications infrastructure-sharing initiative.

The move by the state telecom enterprise is also aimed at enhancing network performance and efficiency, said Col Sanpachai Huvanandana, CAT's acting president.

Up to now, CAT's mobile networks have been managed by several operating units, namely the asset management unit, the concession contract management unit and the mobile business unit.

Col Sanpachai said the consolidation would enable CAT to generate income from network rental fees efficiently.

"Given the skyrocketing demand for telecom and broadcast bandwidth, we need to improve our network asset management in order to serve the trend," he said.

Col Sanpachai said the CAT board recently appointed Viroj Tocharoenvanich as senior executive vice-president in charge of the mobile business unit.

Mr Viroj earlier served as senior executive vice-president for marketing.

CAT Telecom and TOT Plc are under a survival plan.

The State Enterprises Policy Commission (superboard) has ordered the pair to terminate unprofitable businesses and focus instead on six core areas: basic telecom infrastructure, telecom towers, wireless service, fixed broadband internet, international internet gateways and undersea cables.

Col Sanpachai said CAT's board approved a restructuring of operating units.

Under the new structure, CAT will transfer all its mobile telecom assets, including base stations, fibre-optic lines and platform equipment, to the mobile business unit.

Col Sanpachai acknowledged that CAT's existing mobile network assets had not been flexible enough for management and operations.

The consolidation is expected to help CAT become a telecom network service provider as demanded by the superboard, he said.

CAT projects revenue of 52 billion baht this year. Net profit is forecast at 1.5 billion baht.

Of total revenue, 45% will come from network rental fees under the wholesale-resale agreement between CAT and True Corporation that provides 3G wireless broadband service on the 850-megahertz spectrum.

CAT aims for revenue from mobile business to account for 60% of total revenue within the next three years, up from 40% currently, thanks to the business restructuring.

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