Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Thu, 23 Jul 1992 18:52:07 EDT
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      TH: TOT signs major phone deal
X-To:         seasia-l@msu.edu

=======================  Forwarded  Message  ===========================
Date: Fri, 3 Jul 92 02:06:57+070
From: kamol@munnari.oz.au (Kamol Hengkietisak)

     THE Telephone Organisation of Thailand (TOT) yesterday signed
a contract with the newly-established Thai Telephone and
Telecommunication Co Ltd (TT&T) for the installation of one
million telephone lines in the provinces.
     The contract was signed by TOT managing director Paiboon
Limpaphayom and TT&T chairman Pairote Lamsam at Government House.
The ceremony was witnessed by Prime Minister Anand Panyarachun and
Transport and Communications Minister Nukul Prachuabmoh.
     TT&T was established by the Loxley/Jasmine consortium, which
comprises Loxley (Bangkok) Ltd (32%), Jasmine International Co Ltd
(32%), Italian-Thai Development Corporation Ltd (26%) and Phatra
Thanakit Co Ltd (10%), to implement the project.
     TT&T was expected to earn an average annual revenue of 12,000
million baht over the 25-year concession period, of which 43.10%
would go to the TOT as revenue sharing.
     TT&T was set up with registered capital of 100 million baht.
Its capital is expected to be increased to about 8,000 million
baht in the next three years.
     The cost of the project will be about 40,000 million baht.
     Installation of the phone lines in 69 provinces must be
completed within five years.
     Mr Pairote said he was confident in the company's ability to
provide good service and expected to install the first 200,000
lines within the next 24 months or 18 months after the firm's
master plan was approved by the TOT.
     Under the contract, TT&T must submit an installation plan to
the TOT for the first 200,000 lines within the next three months.
The installation plan for the remainder of the project will be
completed within six months.
     Installation of additional phone lines in the provinces is
expected to support the Government's plan to expand industry
up-country.
     TT&T will select at least two suppliers for the project as
soon as possible.
     It also plans to apply for listing on the Stock Exchange of
Thailand within five years, with not less than 51% of the company
being held by existing shareholders and 20% of stock being offered
to the public.
     TT&T chief executive officer Adisai Bodharamik said TT&T
would select a firm to operate the project within one month.
     In a related development, Mr Nukul said after the signing
ceremony that the granting of the concession to TT&T would
encourage competition in telephone services.
     The TOT and the Government would benefit from having two
different groups handling the telephone projects for Bangkok and
the provinces by knowing the actual cost of telephone services.
The existence of two operators would also encourage competition
and create justice for telephone users, Mr Nukul said.
     The high level of revenue sharing from the provincial
contract would also set a standard for future tenders, he said.
Comments: Gated by NETNEWS@AUVM.AMERICAN.EDU