Rated "AAA" by Standard & Poor's, FTIF Templeton Global Bond Fund focuses on investment-grade government debts worldwide in over 20 currencies.
The Thai fund's unit trusts will be available during July 25-August 11 through CIMB Thai Bank's branches. Minimum investment is Bt5,000.
วันเสาร์ที่ 23 กรกฎาคม พ.ศ. 2554
Power Buy sets aside Bt1 bn for new stores, renovation project
Power Buy, Thailand's leading retailer of electronic appliances and information-technology products, will this year invest about Bt1 billion to set up new stores and renovate existing ones.
About Bt700 million will be allocated to new stores, and Bt300 million will be spent on renovating 13 existing Power Buy outlets.
Suthisarn Chirathivat, president of Power Buy, a branch of Central Retail Corporation, said it would open 18 new stores by the end of this year.
"We have already opened four new Power Buy stores, including in Hua Hin, which is our first standalone outlet. Occupying total retail space of about Bt2,500 square metres, the Hua Hin store was officially opened in January," he said. Suthisarn said new Power Buy outlets would be opened this year in Sukhapiban 3, Bang Na kilometre 7, CentralPlaza Lat Phrao, CentralPlaza Rama IX, and Lampang. He said it was the biggest expansion of Power Buy outlets in five years.
The company currently operates about 60 Power Buy outlets, mainly in HomeWorks, Thai Watsadu, and Central Department Stores.
Suthisarn said the overall IT and consumer-electronics market was anticipated to grow by 15-20 per cent this year, according to GfK research agency. The growth is being driven by political stability and a good rebound of the overall Thai economy. However, some concerns remain, including inflation and increasing prices of oil and commodities.
Power Buy sales grew by about 10 per cent to Bt10 billion in 2009, and by 15 per cent to Bt13 billion last year. The company expects its sales to increase by another 20 per cent to Bt16.3 billion this year, based on performance in the first six months.
The company has set its marketing budget at more than Bt60 million for promotions and special privileges such as discounts of up to 30 per cent.
Power Buy yesterday joined forces with electronic-appliances manufacturers of more than 200 world-class brands for "Power Buy Expo 2011".
Power Buy Expo 2011 runs until July 31 at Hall 103-104 of Bitec Bang Na, with total space of more than 12,000sqm to welcome 400,000 shoppers. The company expects sales of Bt450 million at the event.
About Bt700 million will be allocated to new stores, and Bt300 million will be spent on renovating 13 existing Power Buy outlets.
Suthisarn Chirathivat, president of Power Buy, a branch of Central Retail Corporation, said it would open 18 new stores by the end of this year.
"We have already opened four new Power Buy stores, including in Hua Hin, which is our first standalone outlet. Occupying total retail space of about Bt2,500 square metres, the Hua Hin store was officially opened in January," he said. Suthisarn said new Power Buy outlets would be opened this year in Sukhapiban 3, Bang Na kilometre 7, CentralPlaza Lat Phrao, CentralPlaza Rama IX, and Lampang. He said it was the biggest expansion of Power Buy outlets in five years.
The company currently operates about 60 Power Buy outlets, mainly in HomeWorks, Thai Watsadu, and Central Department Stores.
Suthisarn said the overall IT and consumer-electronics market was anticipated to grow by 15-20 per cent this year, according to GfK research agency. The growth is being driven by political stability and a good rebound of the overall Thai economy. However, some concerns remain, including inflation and increasing prices of oil and commodities.
Power Buy sales grew by about 10 per cent to Bt10 billion in 2009, and by 15 per cent to Bt13 billion last year. The company expects its sales to increase by another 20 per cent to Bt16.3 billion this year, based on performance in the first six months.
The company has set its marketing budget at more than Bt60 million for promotions and special privileges such as discounts of up to 30 per cent.
Power Buy yesterday joined forces with electronic-appliances manufacturers of more than 200 world-class brands for "Power Buy Expo 2011".
Power Buy Expo 2011 runs until July 31 at Hall 103-104 of Bitec Bang Na, with total space of more than 12,000sqm to welcome 400,000 shoppers. The company expects sales of Bt450 million at the event.
Used car sales expected to grow
Jaturont Komolmis, senior vice president of Grand Prix International, a local publisher of auto magazines, and chairman of the organising committee of the Bangkok Used Car and Supercar Show, said demand for used cars had increased in each of the past three years. Sales jumped 15 per cent in 2009 and 20 per cent last year. Another 25-per-cent increase is anticipated for this year.
"Car ownership in Thailand is at the ratio of nine persons per car, which is the highest in Asean and fourth in Asia after Japan, China, India and South Korea," Jaturont said.
He said that in the United States, the ownership ratio was 3.8 per car.
Thailand is a production hub for vehicles, supplying both the domestic and export markets. About 2 million cars are targeted to be produced locally this year, increasing to 2.5 million units by 2014.
Jaturont said Thailand was the world's 14th-largest car producer.
He said the used-car market would continue to grow as second-hand vehicles changed hands more quickly than new ones.
The average price of a used car is about Bt500,000, much cheaper than a new vehicle, for which prices average around Bt1 million.
"We have found that owners of new cars keep them for an average of four or five years before trading them in. Used cars change hands every one and a half to two years.
"Based on this, demand for used cars can be four to five times as high as for new cars."
Jaturont said there were more than 2 million new graduates every year, many of them entering the workforce right away.
"From our survey, cars will be the first items first-jobbers choose to buy once they are earning a salary, as they want to make life more convenient."
He said this was quite different from developed markets, where more than 50 per cent of first-jobbers make buying a house their first priority. Cars have become less important in many developed markets with good mass-transport systems.
The third Bangkok Used Car and Supercar Show kicked off yesterday and will be held until July 31 at Challenger 2-3, Impact Muang Thong Thani.
The auto extravaganza features more than 10,000 pre-owned and imported cars, with prices ranging from Bt200,000 to Bt10 million. The company is confident that the fair will be a great success, targeting 30 per cent more sales than at last year's event.
"Car ownership in Thailand is at the ratio of nine persons per car, which is the highest in Asean and fourth in Asia after Japan, China, India and South Korea," Jaturont said.
He said that in the United States, the ownership ratio was 3.8 per car.
Thailand is a production hub for vehicles, supplying both the domestic and export markets. About 2 million cars are targeted to be produced locally this year, increasing to 2.5 million units by 2014.
Jaturont said Thailand was the world's 14th-largest car producer.
He said the used-car market would continue to grow as second-hand vehicles changed hands more quickly than new ones.
The average price of a used car is about Bt500,000, much cheaper than a new vehicle, for which prices average around Bt1 million.
"We have found that owners of new cars keep them for an average of four or five years before trading them in. Used cars change hands every one and a half to two years.
"Based on this, demand for used cars can be four to five times as high as for new cars."
Jaturont said there were more than 2 million new graduates every year, many of them entering the workforce right away.
"From our survey, cars will be the first items first-jobbers choose to buy once they are earning a salary, as they want to make life more convenient."
He said this was quite different from developed markets, where more than 50 per cent of first-jobbers make buying a house their first priority. Cars have become less important in many developed markets with good mass-transport systems.
The third Bangkok Used Car and Supercar Show kicked off yesterday and will be held until July 31 at Challenger 2-3, Impact Muang Thong Thani.
The auto extravaganza features more than 10,000 pre-owned and imported cars, with prices ranging from Bt200,000 to Bt10 million. The company is confident that the fair will be a great success, targeting 30 per cent more sales than at last year's event.
Banks to continue with strong earnings
Local banks' strong Q2 2011 earnings underpinned by higher net interest margin (NIM), strong insurance premiums and well-contained costs should allow them to leverage the economic turnaround.
Earnings momentum is expected to be sustained, or even better for the rest of this year on back of sustained economic momentum and improve political climate.
Most analysts believe the Thai central bank will not raise its policy rate much higher than the current 3.25 per cent, while banks are unlikely to raise their deposit rates aggressively. This should contribute to improvement in their NIM in the following quarters. Robust loan growth will also help boost NIM and
fee incomes. Hence, second half 2011 earnings are expected to be stronger than that of the first half's.
Improving NIM
Higher net interest margin (NIM) both year-on-year (yoy) and quarter-on-quartor (qoq). All banks showed higher NIM yoy and qoq, except for Bank of Ayudhya (BAY), which saw a slight qoq dip. On average, NIM improved 13 basis point (bp) qoq and 20 bp yoy.
KTB showed the highest yoy improvement while TMB recorded the strongest qoq increase.
Basically, yields on banks' earning assets rose faster than costs on interest-bearing liabilities as banks did not raise rates for savings, which account for about 40 per cent, or more of their deposit portfolios. Meanwhile, they raised lending rates by 25 bp across the board.
With competition for deposits declining following the recent central bank policy rate hike, banks' NIM should be even better in the second half of this year than the first half.
Asset quality improved
Non-performing loans (NPL) ratios dropped for most banks. Given improved economic conditions, NPL ratios have declined. As the economy is expected to grow 4.5% this year, NPLs should slide further and
pose no concerns for the banking sector over the next couple of years. As a result, banks have room to lower their provisions.
Fee income still strong
Aggregate fee income rose 9 per cent yoy and 1 per cent qoq. Despite banks' lowering of provincial transfer fees and ATM withdrawal fees in Q1 2011, fee income was still considered very robust. Banks' fee income should grow by 10 per cent this year and next year.
Costs under control
Cost-to-income ratio averaged 45 per cent in the Q2 2011, down from 50 per cent in Q2 2010. Banks' aggressive branch and ATM network expansions over the past few years are likely to cool down, hence this ratio should start to decline. Lower cost-to-income ratios should help strengthen banks' profitability.
Banks aggregate earnings forecasts should rise by 2-3 per cent for the calendar year 2011-13, according to CIMB Securities (Thailand).
Siam Commercial Bank (SCB) and Krung Thai Bank (KTB) are CIMB Securities (Thailand)'s top picks. SCB is expected to be a foreign investor favourite in the banking sector, while KTB is likely to be domestic investors' pick among the banking stocks. The stronger-than-expected Q2 2011 results are likely to lead to brokers' earnings upgrades and a solid earnings outlook should be a catalyst for banks' share prices.
Earnings momentum is expected to be sustained, or even better for the rest of this year on back of sustained economic momentum and improve political climate.
Most analysts believe the Thai central bank will not raise its policy rate much higher than the current 3.25 per cent, while banks are unlikely to raise their deposit rates aggressively. This should contribute to improvement in their NIM in the following quarters. Robust loan growth will also help boost NIM and
fee incomes. Hence, second half 2011 earnings are expected to be stronger than that of the first half's.
Improving NIM
Higher net interest margin (NIM) both year-on-year (yoy) and quarter-on-quartor (qoq). All banks showed higher NIM yoy and qoq, except for Bank of Ayudhya (BAY), which saw a slight qoq dip. On average, NIM improved 13 basis point (bp) qoq and 20 bp yoy.
KTB showed the highest yoy improvement while TMB recorded the strongest qoq increase.
Basically, yields on banks' earning assets rose faster than costs on interest-bearing liabilities as banks did not raise rates for savings, which account for about 40 per cent, or more of their deposit portfolios. Meanwhile, they raised lending rates by 25 bp across the board.
With competition for deposits declining following the recent central bank policy rate hike, banks' NIM should be even better in the second half of this year than the first half.
Asset quality improved
Non-performing loans (NPL) ratios dropped for most banks. Given improved economic conditions, NPL ratios have declined. As the economy is expected to grow 4.5% this year, NPLs should slide further and
pose no concerns for the banking sector over the next couple of years. As a result, banks have room to lower their provisions.
Fee income still strong
Aggregate fee income rose 9 per cent yoy and 1 per cent qoq. Despite banks' lowering of provincial transfer fees and ATM withdrawal fees in Q1 2011, fee income was still considered very robust. Banks' fee income should grow by 10 per cent this year and next year.
Costs under control
Cost-to-income ratio averaged 45 per cent in the Q2 2011, down from 50 per cent in Q2 2010. Banks' aggressive branch and ATM network expansions over the past few years are likely to cool down, hence this ratio should start to decline. Lower cost-to-income ratios should help strengthen banks' profitability.
Banks aggregate earnings forecasts should rise by 2-3 per cent for the calendar year 2011-13, according to CIMB Securities (Thailand).
Siam Commercial Bank (SCB) and Krung Thai Bank (KTB) are CIMB Securities (Thailand)'s top picks. SCB is expected to be a foreign investor favourite in the banking sector, while KTB is likely to be domestic investors' pick among the banking stocks. The stronger-than-expected Q2 2011 results are likely to lead to brokers' earnings upgrades and a solid earnings outlook should be a catalyst for banks' share prices.
BOT says govt measures increase inflationary risks
The comments fuelled market expectations of higher inflation and more interest-rate hikes after the central bank slightly raised its core-inflation forecasts for 2011 and 2012 yesterday.
"Inflationary risk is higher than the risk to economic growth," said BOT Assistant Governor Paiboon Kittisrikangwan.
The panel yesterday revised upwards its forecast for core inflation to 2.4 per cent this year from the previous forecast of 2.3 per cent. Next year's estimate was also raised to 2.3 per cent from an earlier projection of 2.1 per cent. The monetary authorities cited the likelihood of rising inflationary pressure in the second half of the year due to increased pass-through of costs to consumers and rising pressure on demand amid robust domestic growth.
The MPC is maintaining its forecasts for headline inflation and economic growth. Headline inflation is estimated at 3.9 per cent this year and 3.2 per cent next year. Thailand's economy is expected to grow 4.1 per cent this year and 4.2 per cent in 2012.
The committee expects Thailand to see more economic momentum in the latter half of this year than in the second quarter, Paiboon said, citing the likelihood of higher exports after the supply disruption from Japan's crisis.
It also expects increases in private investment and private consumption on the back of accommodative interest rates and satisfactory loan expansion.
The estimates for inflation and next year's growth rate do not take into account the incoming government's policies, Paiboon said.
"If the state's policies are clearer, forecasts could be revised," he said.
The new government's pledge for an increase in minimum wages has a direct impact on production costs. If wages rise sharply and are not in line with the level of labour productivity, that will have a large impact on inflation, Paiboon said. Additional economic stimulus measures could add to inflationary pressure, he added.
Currently, inflationary pressure remains high because of continued investment and consumption and pass-through of rising costs to product prices.
"Even though the policy rate has been raised continuously from last year, the real interest rate remains negative," he said. Roughly, the real interest rate equals the policy rate minus consensus-expected inflation on average for a year.
Other issues being monitored include global economic expansion, domestic economic stability, future fiscal policy and household debt.
"Inflationary risk is higher than the risk to economic growth," said BOT Assistant Governor Paiboon Kittisrikangwan.
The panel yesterday revised upwards its forecast for core inflation to 2.4 per cent this year from the previous forecast of 2.3 per cent. Next year's estimate was also raised to 2.3 per cent from an earlier projection of 2.1 per cent. The monetary authorities cited the likelihood of rising inflationary pressure in the second half of the year due to increased pass-through of costs to consumers and rising pressure on demand amid robust domestic growth.
The MPC is maintaining its forecasts for headline inflation and economic growth. Headline inflation is estimated at 3.9 per cent this year and 3.2 per cent next year. Thailand's economy is expected to grow 4.1 per cent this year and 4.2 per cent in 2012.
The committee expects Thailand to see more economic momentum in the latter half of this year than in the second quarter, Paiboon said, citing the likelihood of higher exports after the supply disruption from Japan's crisis.
It also expects increases in private investment and private consumption on the back of accommodative interest rates and satisfactory loan expansion.
The estimates for inflation and next year's growth rate do not take into account the incoming government's policies, Paiboon said.
"If the state's policies are clearer, forecasts could be revised," he said.
The new government's pledge for an increase in minimum wages has a direct impact on production costs. If wages rise sharply and are not in line with the level of labour productivity, that will have a large impact on inflation, Paiboon said. Additional economic stimulus measures could add to inflationary pressure, he added.
Currently, inflationary pressure remains high because of continued investment and consumption and pass-through of rising costs to product prices.
"Even though the policy rate has been raised continuously from last year, the real interest rate remains negative," he said. Roughly, the real interest rate equals the policy rate minus consensus-expected inflation on average for a year.
Other issues being monitored include global economic expansion, domestic economic stability, future fiscal policy and household debt.
CAT puts brakes on DTAC 3G
He added that DTAC's clinching of a permit last month from the National Telecommunications Commission (NTC) to install and use a 3G wireless broadband network did not mean DTAC could go ahead with its stated plan to launch it in August. The cellular operator needs to wait for the Office of the Attorney-General to inform CAT if DTAC can launch 3G commercial services under a CAT concession, he said.
A source from DTAC complained that CAT had kept the firm waiting for more than two years for the nod to launch 3G commercial services. The source added that if the OAG gave DTAC the okay, CAT might try to delay the plan further. CAT has allowed DTAC to launch 3G services on a trial basis.
Advanced Info Service is expected to launch commercial 3G services next week, while CAT soft-launched its own commercial 3G services this week.
On Thursday, DTAC announced that it would commercially launch 3G wireless broadband services in Bangkok in mid-August. The launch will be based on an NTC permit.
DTAC has earmarked Bt1.2 billion for the two-phase network upgrade this year using 1,220 base stations. It has completed the initial upgrade in Bangkok of 400 stations at a cost of Bt350 million. The addition of 800 more sites to cover all of Bangkok and 20 other provinces is expected to be completed this year.
DTAC also plans to increase the number of 3G base stations to 2,000 in 2012, which will cost Bt750 million for an additional 780 base stations in 40 provinces. If its board approves this third phase, it is ex
A source from DTAC complained that CAT had kept the firm waiting for more than two years for the nod to launch 3G commercial services. The source added that if the OAG gave DTAC the okay, CAT might try to delay the plan further. CAT has allowed DTAC to launch 3G services on a trial basis.
Advanced Info Service is expected to launch commercial 3G services next week, while CAT soft-launched its own commercial 3G services this week.
On Thursday, DTAC announced that it would commercially launch 3G wireless broadband services in Bangkok in mid-August. The launch will be based on an NTC permit.
DTAC has earmarked Bt1.2 billion for the two-phase network upgrade this year using 1,220 base stations. It has completed the initial upgrade in Bangkok of 400 stations at a cost of Bt350 million. The addition of 800 more sites to cover all of Bangkok and 20 other provinces is expected to be completed this year.
DTAC also plans to increase the number of 3G base stations to 2,000 in 2012, which will cost Bt750 million for an additional 780 base stations in 40 provinces. If its board approves this third phase, it is ex
วันพฤหัสบดีที่ 14 กรกฎาคม พ.ศ. 2554
Tisco expects last rate hike in August
The policy rate was raised 25 basis points to 3.25 per cent on July 13.
Tisco supported its view by saying that inflation pressure remains high due to continued demand growth. It expected the core inflation (excluding volatile food and energy prices) to peak in the next few months.
However, Tisco said that the new government's policies would send limited impacts to the gross domestic product. The policies should also boost inflation largely next year, but not this year. As such, it is convinced that the rate hike in August would be the last this year.
Tisco supported its view by saying that inflation pressure remains high due to continued demand growth. It expected the core inflation (excluding volatile food and energy prices) to peak in the next few months.
However, Tisco said that the new government's policies would send limited impacts to the gross domestic product. The policies should also boost inflation largely next year, but not this year. As such, it is convinced that the rate hike in August would be the last this year.
THAI resumes normal operations to Japan
"THAI has resumed all its regularly operated services on routes from Bangkok to five airports in Japan, back to the same level served prior to the Great East Japan Earthquake on March 11. Passenger traffic to and from Japan is regaining normal levels," said Pandit Chanapai, THAI executive vice president of commercial.
Beginning November 16, THAI will operate three additional flights per week on the route Bangkok-Osaka (Kansai) v.v. utilising the retrofitted Boeing 777-300 aircraft. With the introduction of these three additional flights, THAI will operate a total of 17 flights per week to Osaka (Kansai), making it more convenient for passengers with flight connections to Europe.
The winter traffic programme will also reflect adjustments to flight scheduling for easier connections into Phuket.
Beginning November 16, THAI will operate three additional flights per week on the route Bangkok-Osaka (Kansai) v.v. utilising the retrofitted Boeing 777-300 aircraft. With the introduction of these three additional flights, THAI will operate a total of 17 flights per week to Osaka (Kansai), making it more convenient for passengers with flight connections to Europe.
The winter traffic programme will also reflect adjustments to flight scheduling for easier connections into Phuket.
Fitch rates TMB funds on 'strong capacity' to meet
Both are money-market funds managed by TMB Asset Management Co (TMBAM).
The ratings reflect the funds' strong capacity to achieve their investment objectives of preserving principal and providing shareholder liquidity through limiting credit, market and liquidity risk, Fitch said.
The main rating drivers are the credit quality, diversification, and liquidity of the funds' portfolios and the capabilities and resources of TMBAM as an investment adviser, it said.
As of June 30, TMBTM and TMBMF had about Bt16.9 billion and Bt14.3 billion, respectively, in total assets under management.
Both funds pursue their objectives by investing in high-quality short-term debt securities, including those of the Thai government and the Bank of Thailand, time deposits, bills of exchange, promissory notes, and repurchase agreements.
Consistent with Fitch's "AAAmmf(tha)" investment guidelines, TMBTM and TMBMF maintain high credit quality by investing exclusively in securities rated "F1(tha)" or "F1+(tha)" - with a minimum 50 per cent in the latter - by Fitch or comparable credit quality according to other rating agencies.
In keeping with the same guidelines, the funds limit their exposure to individual obligors and counter-parties. As of June 30, both funds' portfolio credit factor, which is a risk-weighted measure of the credit quality and maturity profile of the funds' portfolio securities, met Fitch's "AAAmmf(tha)" investment guidelines of 1.50 or less.
The funds seek to limit their interest-rate exposure by limiting weighted average maturity to reset date (WAMr) to 60 days, consistent with Fitch's guidelines. Although the funds do not set a limit on weighted average final maturity (WAMf), all of their investments are in fixed-rate securities resulting in similar levels between their WAMr and WAMf.
As of June 30, TMBTM's and TMBMF's WAMr was 44 and 56 days, respectively. The funds' overall maturity profiles are currently consistent with Fitch's investment guidelines of 397-day maximum maturity limit for financial institution, corporate and fixed rate-government securities.
The funds' additional investment restrictions are aimed at maintaining sufficient levels of daily and weekly liquidity to meet investors' redemption requests. In line with Fitch's investment guidelines applicable to money market funds in Thailand, the funds invest at least 15 per cent of total assets in securities maturing overnight or other qualified assets and at least 30 per cent in securities maturing within seven business days or other qualified assets.
The funds have fully met these liquidity requirements over the past 12 months, the agency said.
Two securities houses fined by SET
In a statement, the exchange said KT Zmico is fined Bt510,000 for providing incentives to marketing officers despite the absence of advice to clients or transaction orders. Two marketing officers were also put on probation. KGI Securities is also fined Bt300,000 for a similar reason and its three marketing officers are put on probation.
Both companies clarified that they did not intend to breach the rules and promised to adhere to the rules.
Both companies clarified that they did not intend to breach the rules and promised to adhere to the rules.
วันเสาร์ที่ 9 กรกฎาคม พ.ศ. 2554
TOT, AIS strike roaming deal
This deal should help AIS expand its 3G service so it can compete with True Corp, which has partnered with CAT Telecom.
A TOT source said both sides had agreed on the matter and were waiting for the deal to take effect soon. TOT apparently sent the draft contract to AIS as soon as it looked like Pheu Thai was going to take over the country's reins. Party leader Yingluck Shinawatra is the former president of AIS.
Negotiations for this deal have been going on since last year. The source said that under this deal, TOT would initially allow 60,000 AIS customers to use its 3G network in Greater Bangkok for data roaming, while AIS will allow 200,000 TOT customers voice access and 10,000 customers for data services.
Under the deal, both sides are allowed to provide roaming access to a million customers each.
AIS will pay TOT a roaming fee of 85 satang for each megabyte downloaded, while TOT will pay AIS a promotional rate of 60 satang per minute for subscribers using the AIS network for voice service, Bt1 per SMS and 85 satang per megabyte of data downloaded.
The TOT source added that AIS initially wanted to charge a roaming fee of Bt1.10 per minute, but later agreed to bring it down to the promotional rate. AIS will also give TOT 30 per cent of the revenue it earns from subscribers using the TOT network for roaming access.
The TOT source said this deal was not exclusively for AIS, but AIS had the right to ask TOT to refuse other telecom firms.
AIS wants its subscribers to use the TOT network for roaming access in order to ease the burden on its 3G-900 MHz network, which is serving voice and data services to more than 30 million customers. However, partners that provide the 3G service on TOT's existing network are against the deal because they are concerned AIS would compete with them to acquire customers.
AIS is also interested in partnering with TOT to provide 3G services on TOT's soon-to-be set up nationwide 3G network.
A TOT source said both sides had agreed on the matter and were waiting for the deal to take effect soon. TOT apparently sent the draft contract to AIS as soon as it looked like Pheu Thai was going to take over the country's reins. Party leader Yingluck Shinawatra is the former president of AIS.
Negotiations for this deal have been going on since last year. The source said that under this deal, TOT would initially allow 60,000 AIS customers to use its 3G network in Greater Bangkok for data roaming, while AIS will allow 200,000 TOT customers voice access and 10,000 customers for data services.
Under the deal, both sides are allowed to provide roaming access to a million customers each.
AIS will pay TOT a roaming fee of 85 satang for each megabyte downloaded, while TOT will pay AIS a promotional rate of 60 satang per minute for subscribers using the AIS network for voice service, Bt1 per SMS and 85 satang per megabyte of data downloaded.
The TOT source added that AIS initially wanted to charge a roaming fee of Bt1.10 per minute, but later agreed to bring it down to the promotional rate. AIS will also give TOT 30 per cent of the revenue it earns from subscribers using the TOT network for roaming access.
The TOT source said this deal was not exclusively for AIS, but AIS had the right to ask TOT to refuse other telecom firms.
AIS wants its subscribers to use the TOT network for roaming access in order to ease the burden on its 3G-900 MHz network, which is serving voice and data services to more than 30 million customers. However, partners that provide the 3G service on TOT's existing network are against the deal because they are concerned AIS would compete with them to acquire customers.
AIS is also interested in partnering with TOT to provide 3G services on TOT's soon-to-be set up nationwide 3G network.
Pheu Thai to go for revamp of energy policy
The end to Oil Fund levies on three fuel products marks the beginning of the Pheu Thai government's revamping of energy pricing, including ex-refinery prices, and possible exploitation of petroleum royalties, Energy Ministry and Government House sources said.
"The party made it clear that it will control the Energy Ministry. The minister is someone proficient in energy affairs and he will overhaul the energy price structure, particularly gasoline prices, for fairness to consumers particularly the grassroots who contributed massive votes to the party," said the Energy Ministry source who asked not to be named.
Ending contributions from fuel product sales to the Oil Fund could be implemented immediately, with the endorsement of the National Energy Council chaired by the prime minister, he said.
The Oil Fund levies are Bt7.50 per litre for 95-octane petrol, Bt6.70 for 91-octane petrol and Bt1.27 for diesel.
The levy for gasohol 95 with 10-per-cent ethanol content is Bt2.40 and for gasohol 91 with similar ethanol content is Bt0.10. The fund subsidises Bt1.30 and Bt13.50 per litre for gasohol 95 with ethanol blends of 20 and 85 per cent.
The decision to scrap contributions from the two petrol products will not hurt the Oil Fund much. Based on daily consumption of 7 million to 8 million litres of 91-octane, and 100,000 litres of 95-octane, the fund would lose only about Bt60 million a day from the decision.
It would also be giving up Bt67.3 million by scrapping the diesel contribution, based on a daily consumption of 53 million litres.
The government's decision will leave intact the levies on gasohol 95 and gasohol 91 with combined daily consumption of 10 million to 12 million litres. The Oil Fund - due to the stiff subsidies for diesel and gas - is saddled with Bt1.13 billion debts.
"The party originally wanted to please motorcyclists with the campaign to end the Oil Fund. However, that would require a new mechanism as the Oil Fund is still needed to subsidise cooking gas and other products like gasohol E85," the source said.
Over 10 million motorcycles nationwide are running on regular or premium petrol.
Part of the overhaul would be a change in the ex-refinery price, which now references the Singapore price. To attract investment in refineries, the government allows refineries to add to the Singapore price the cost of transporting oil from Singapore, even though there was no such transaction. Without the extra cost, the ex-refinery prices would be lower and so would pump prices.
Besides the new pricing formulas, an oil stock is part of the plan for energy security, which is in line with the International Energy Agency's recommendations. Such stocks are used in countries without a mechanism like the Oil Fund to stabilise prices. For instance, the IEA earlier this month released 60 million barrels of its stock to ease global demand, and this effectively reduced global oil prices.
The oil reserve depots would be part of the Land Bridge project in the South, which was part of Pheu Thai's election platform, the source added.
Krairit Nilkuha, director-general of the Alternative Energy Development and Efficiency Department, said the loss could be addressed by the Energy Conservation Fund, which accumulates Bt4 billion to Bt5 billion annually through the contribution of 25 satang per litre from various fuel products.
Royalty income from petroleum concessions, worth nearly Bt50 billion per year, could be used to cover the Oil Fund's support of alternative fuels like gasohol E20, E85 and liquefied petroleum gas, which is much lower.
"I'm convinced that the promotion under the 15-year alternative energy development plan [2008-2022] would remain and this requires further subsidies," he said.
In the US, petroleum concession holders are required to remit 10 per cent of output to the government. The government then resorts to the stock at times of high global prices, or sells it to make profits.
The Government House source said no legal amendment is needed if royalties would be used for this purpose. Under the Fiscal Reserve Act, that could be done only with the approval of the finance minister, with a clear set of spending plans.
Then the royalty income now parked at the Mineral Fuels Department would be exploited. However, such a change would give the spending mandate to the department's chief or the related ministry's permanent secretary, and the off-balance spending would not be subject to parliamentary scrutiny. For the sake of transparency, a new committee may be set up to manage the fund.
"The party made it clear that it will control the Energy Ministry. The minister is someone proficient in energy affairs and he will overhaul the energy price structure, particularly gasoline prices, for fairness to consumers particularly the grassroots who contributed massive votes to the party," said the Energy Ministry source who asked not to be named.
Ending contributions from fuel product sales to the Oil Fund could be implemented immediately, with the endorsement of the National Energy Council chaired by the prime minister, he said.
The Oil Fund levies are Bt7.50 per litre for 95-octane petrol, Bt6.70 for 91-octane petrol and Bt1.27 for diesel.
The levy for gasohol 95 with 10-per-cent ethanol content is Bt2.40 and for gasohol 91 with similar ethanol content is Bt0.10. The fund subsidises Bt1.30 and Bt13.50 per litre for gasohol 95 with ethanol blends of 20 and 85 per cent.
The decision to scrap contributions from the two petrol products will not hurt the Oil Fund much. Based on daily consumption of 7 million to 8 million litres of 91-octane, and 100,000 litres of 95-octane, the fund would lose only about Bt60 million a day from the decision.
It would also be giving up Bt67.3 million by scrapping the diesel contribution, based on a daily consumption of 53 million litres.
The government's decision will leave intact the levies on gasohol 95 and gasohol 91 with combined daily consumption of 10 million to 12 million litres. The Oil Fund - due to the stiff subsidies for diesel and gas - is saddled with Bt1.13 billion debts.
"The party originally wanted to please motorcyclists with the campaign to end the Oil Fund. However, that would require a new mechanism as the Oil Fund is still needed to subsidise cooking gas and other products like gasohol E85," the source said.
Over 10 million motorcycles nationwide are running on regular or premium petrol.
Part of the overhaul would be a change in the ex-refinery price, which now references the Singapore price. To attract investment in refineries, the government allows refineries to add to the Singapore price the cost of transporting oil from Singapore, even though there was no such transaction. Without the extra cost, the ex-refinery prices would be lower and so would pump prices.
Besides the new pricing formulas, an oil stock is part of the plan for energy security, which is in line with the International Energy Agency's recommendations. Such stocks are used in countries without a mechanism like the Oil Fund to stabilise prices. For instance, the IEA earlier this month released 60 million barrels of its stock to ease global demand, and this effectively reduced global oil prices.
The oil reserve depots would be part of the Land Bridge project in the South, which was part of Pheu Thai's election platform, the source added.
Krairit Nilkuha, director-general of the Alternative Energy Development and Efficiency Department, said the loss could be addressed by the Energy Conservation Fund, which accumulates Bt4 billion to Bt5 billion annually through the contribution of 25 satang per litre from various fuel products.
Royalty income from petroleum concessions, worth nearly Bt50 billion per year, could be used to cover the Oil Fund's support of alternative fuels like gasohol E20, E85 and liquefied petroleum gas, which is much lower.
"I'm convinced that the promotion under the 15-year alternative energy development plan [2008-2022] would remain and this requires further subsidies," he said.
In the US, petroleum concession holders are required to remit 10 per cent of output to the government. The government then resorts to the stock at times of high global prices, or sells it to make profits.
The Government House source said no legal amendment is needed if royalties would be used for this purpose. Under the Fiscal Reserve Act, that could be done only with the approval of the finance minister, with a clear set of spending plans.
Then the royalty income now parked at the Mineral Fuels Department would be exploited. However, such a change would give the spending mandate to the department's chief or the related ministry's permanent secretary, and the off-balance spending would not be subject to parliamentary scrutiny. For the sake of transparency, a new committee may be set up to manage the fund.
Strong baht policy
A treasurer at Bangkok Bank said that the appreciation could continue in line with regional movement. The appreciation is guaranteed after Pheu Thai prime minister-elect Yingluck Shinawatra promised to let market mechanism rule.
He expected the baht to move in the range of 30.20-30 today.
He expected the baht to move in the range of 30.20-30 today.
Thai Airways chief seeks fewer regulations
Thai Airways International president Piyasvasti Amranand said at a seminar yesterday on furthering the country's economy and society under the new government that he would like to urge the incoming administration to bring peace to the country and ease any conflict among the people.
The government will have to resolve corruption, which has affected the confidence of foreign investors in Thailand. THAI, which is listed in the local stock market, is quite sensitive to these issues.
"The new elected government should reduce regulations that have obstructed state-run enterprises such as Thai Airways from doing business effectively. Those regulations were created along with the government's concern about any corruption that might be conducted by executives of those state-run enterprises," Piyasvasti said.
"The government then adopted many regulations for the prevention of any corrupt activities, which have made Thai Airways run its airline business inefficiently. It will, however, allow outside people to interfere and do the corruption themselves," he noted.
Piyasvasti said the airline business had suffered a heavy impact from last year's political unrest and massive rallies, which caused many foreign tourists to cancel their trips to Thailand. The airline industry has also been hit severely by volcanic eruptions, which have affected its flying routes.
The company has also been affected by higher operational costs due to the increase of the price of fuel by almost 40 per cent in the first six months of this year compared with the same period last year.
The airline is in a highly competitive industry, mainly with other leading airlines from around the world because of aviation liberalisation. It has also less profit margin and is quite sensitive to any political conflict, which has had an impact on the confidence of foreign travellers considering visits to Thailand.
"About 90 per cent of Thai Airways revenue is from international routes, and the remaining 10 per cent from domestic routes. About 70 per cent of foreign tourists have the intention of direct visits to Thailand, while the other 30 per cent use Thailand as a transit point to other countries.
"If the government manages the country peacefully with no political conflict, which has had an impact on the confidence of foreign tourists, our Thai Airways business will benefit," Piyasvasti said.
Chanin Vongkusolkit, chief executive officer of Banpu, said the new government should not implement policies that will shock the economy. He explained that the economic fundamentals were sound because of high international reserves, relatively low inflation and manageable public debts. Past governments have done well in managing the economy, and growth could continue. No sign of trouble has emerged, he said.
"Capital flew out of the country because of worries about the political situation. [But we should see] capital flow back after the election, as the prime minister-designate has promised national reconciliation," he said.
Suvit Maesincee, an academic at the Sasin Institute for Global Affairs, suggested the new government should ensure less political conflict and much more political stability. Winning a majority of votes should enable the government to manage the country better. Thailand's competitiveness has been adversely affected by political conflicts over the past five to six years, he said.
The country's global market share increased only slightly - from 1.15 per cent in 2004 to 1.36 per cent in 2009 - while China's jumped from 0.76 per cent to 10.75 per cent, and Indonesia succeeded in increasing its export share from 0.85 per cent to 1.04 per cent in the same period.
The government will have to resolve corruption, which has affected the confidence of foreign investors in Thailand. THAI, which is listed in the local stock market, is quite sensitive to these issues.
"The new elected government should reduce regulations that have obstructed state-run enterprises such as Thai Airways from doing business effectively. Those regulations were created along with the government's concern about any corruption that might be conducted by executives of those state-run enterprises," Piyasvasti said.
"The government then adopted many regulations for the prevention of any corrupt activities, which have made Thai Airways run its airline business inefficiently. It will, however, allow outside people to interfere and do the corruption themselves," he noted.
Piyasvasti said the airline business had suffered a heavy impact from last year's political unrest and massive rallies, which caused many foreign tourists to cancel their trips to Thailand. The airline industry has also been hit severely by volcanic eruptions, which have affected its flying routes.
The company has also been affected by higher operational costs due to the increase of the price of fuel by almost 40 per cent in the first six months of this year compared with the same period last year.
The airline is in a highly competitive industry, mainly with other leading airlines from around the world because of aviation liberalisation. It has also less profit margin and is quite sensitive to any political conflict, which has had an impact on the confidence of foreign travellers considering visits to Thailand.
"About 90 per cent of Thai Airways revenue is from international routes, and the remaining 10 per cent from domestic routes. About 70 per cent of foreign tourists have the intention of direct visits to Thailand, while the other 30 per cent use Thailand as a transit point to other countries.
"If the government manages the country peacefully with no political conflict, which has had an impact on the confidence of foreign tourists, our Thai Airways business will benefit," Piyasvasti said.
Chanin Vongkusolkit, chief executive officer of Banpu, said the new government should not implement policies that will shock the economy. He explained that the economic fundamentals were sound because of high international reserves, relatively low inflation and manageable public debts. Past governments have done well in managing the economy, and growth could continue. No sign of trouble has emerged, he said.
"Capital flew out of the country because of worries about the political situation. [But we should see] capital flow back after the election, as the prime minister-designate has promised national reconciliation," he said.
Suvit Maesincee, an academic at the Sasin Institute for Global Affairs, suggested the new government should ensure less political conflict and much more political stability. Winning a majority of votes should enable the government to manage the country better. Thailand's competitiveness has been adversely affected by political conflicts over the past five to six years, he said.
The country's global market share increased only slightly - from 1.15 per cent in 2004 to 1.36 per cent in 2009 - while China's jumped from 0.76 per cent to 10.75 per cent, and Indonesia succeeded in increasing its export share from 0.85 per cent to 1.04 per cent in the same period.
วันจันทร์ที่ 4 กรกฎาคม พ.ศ. 2554
SET sees foreign capital
The market's record daily value without any help from big-lot transactions is a shade higher at Bt63.116 billion, registered in September 2010 when the court unlocked suspended industrial projects at Map Ta Phut in Rayong.
The highest-ever daily transaction value is Bt75 billion, but that included the big-lot transaction when the Shinawatra family sold its stake in Shin Corp for Bt73 billion back in 2006.
Yesterday's huge turnover pushed the Stock Exchange of Thailand Index up by 48.80 points, a 4.69-per-cent rise, to 1,090.28 points.
The landslide poll victory by the opposition Pheu Thai Party convinced investors that Thailand would soon welcome in a new government, while some returned to the market after gains in overseas markets last week due to Greece's success in tapping a new loan facility from the International Monetary Fund.
"The Thai market performed extraordinarily yesterday, reflecting the strong confi?dence of foreign investors. The election on Sunday was com?pleted peacefully, and the majority win will pave the way for quick government formation," said Patteera Dilokrungthirapop, CEO of DBS Vickers Securities (Thailand) and president of the Association of Securities Companies.
HSBC Thailand chief mar?kets strategist Parson Singha said the election result had been better than expected for investors, driving the SET Index up and strengthening the baht.
The baht gained 0.34 per cent to 30.46 against the US dollar as of 5.30pm yesterday, because of the capital inflow into the stock market as well as the dollar weakening against the euro. "Investor confidence is on the rise as no violence is expected [following the election]," Parson said.
Investors turned their atten?tion to stocks linked directly or indirectly to the Shinawatra family, as Yingluck Shinawatra, the sister of ousted prime minister Thaksin Shinawatra, is tipped to become the next prime minister.
The highest-ever daily transaction value is Bt75 billion, but that included the big-lot transaction when the Shinawatra family sold its stake in Shin Corp for Bt73 billion back in 2006.
Yesterday's huge turnover pushed the Stock Exchange of Thailand Index up by 48.80 points, a 4.69-per-cent rise, to 1,090.28 points.
The landslide poll victory by the opposition Pheu Thai Party convinced investors that Thailand would soon welcome in a new government, while some returned to the market after gains in overseas markets last week due to Greece's success in tapping a new loan facility from the International Monetary Fund.
"The Thai market performed extraordinarily yesterday, reflecting the strong confi?dence of foreign investors. The election on Sunday was com?pleted peacefully, and the majority win will pave the way for quick government formation," said Patteera Dilokrungthirapop, CEO of DBS Vickers Securities (Thailand) and president of the Association of Securities Companies.
HSBC Thailand chief mar?kets strategist Parson Singha said the election result had been better than expected for investors, driving the SET Index up and strengthening the baht.
The baht gained 0.34 per cent to 30.46 against the US dollar as of 5.30pm yesterday, because of the capital inflow into the stock market as well as the dollar weakening against the euro. "Investor confidence is on the rise as no violence is expected [following the election]," Parson said.
Investors turned their atten?tion to stocks linked directly or indirectly to the Shinawatra family, as Yingluck Shinawatra, the sister of ousted prime minister Thaksin Shinawatra, is tipped to become the next prime minister.
Uncertainty surrounding LPG price float policy
The move is awaiting Royal Gazette endorsement. Then the LPG price will be raised by Bt3 per kilogram each quarter.
Outgoing Prime Minister Abhisit Vejjajiva signed the Energy Ministry order for the price flotation policy on July 1.
Yesterday, the Energy Policy Administration Committee also agreed to reduce the contribution to the Oil Fund by diesel traders by 60 satang per litre. The reduction is in line with the increase of the crude-oil price in the world market by US$3.18 per barrel. The decision will allow traders' margin to reach Bt1.14 instead of 54 satang per litre.
The strategy will prolong the controlled retail price of diesel at Bt29.99 per litre.
Norkhun Sittipong, permanent secretary of the Energy Ministry, said yesterday that money flowing into the Oil Fund would drop from Bt82 million to Bt49 million per day. The Oil Fund reports a negative value of Bt1.13 billion.
There have as yet been no details on Yingluck Shinawatra's announcement at a political rally during the just-concluded election campaign that her government would abolish the Oil Fund. The Energy Ministry has to wait for the new government's energy policy.
Outgoing Prime Minister Abhisit Vejjajiva signed the Energy Ministry order for the price flotation policy on July 1.
Yesterday, the Energy Policy Administration Committee also agreed to reduce the contribution to the Oil Fund by diesel traders by 60 satang per litre. The reduction is in line with the increase of the crude-oil price in the world market by US$3.18 per barrel. The decision will allow traders' margin to reach Bt1.14 instead of 54 satang per litre.
The strategy will prolong the controlled retail price of diesel at Bt29.99 per litre.
Norkhun Sittipong, permanent secretary of the Energy Ministry, said yesterday that money flowing into the Oil Fund would drop from Bt82 million to Bt49 million per day. The Oil Fund reports a negative value of Bt1.13 billion.
There have as yet been no details on Yingluck Shinawatra's announcement at a political rally during the just-concluded election campaign that her government would abolish the Oil Fund. The Energy Ministry has to wait for the new government's energy policy.
วันศุกร์ที่ 1 กรกฎาคม พ.ศ. 2554
CPI up 4.19% in June
Though fuel prices dropped on year, food prices were higher and contributed largely to the high inflation figure.
Month-on-month, the inflation increased 0.13 per cent.
However, inflation in the first half expanded 3.56 per cent, well within the authorities' expectation. The Bank of Thailand targets headline inflation to expand 3-5 per cent this year, due mainly to higher food and fuel prices.
Yanyong Phuangrach, permanent secretary of the Commerce Ministry, said inflation has expanding more steadily and reflected stable economic growth. However, a possible increase in oil prices and interest rates may further boost costs of goods in the remaining months of the year, he warned.
Month-on-month, the inflation increased 0.13 per cent.
However, inflation in the first half expanded 3.56 per cent, well within the authorities' expectation. The Bank of Thailand targets headline inflation to expand 3-5 per cent this year, due mainly to higher food and fuel prices.
Yanyong Phuangrach, permanent secretary of the Commerce Ministry, said inflation has expanding more steadily and reflected stable economic growth. However, a possible increase in oil prices and interest rates may further boost costs of goods in the remaining months of the year, he warned.
Singha Corp is more optimistic about growth
"The overall beer market, worth more than Bt100 billion, is expected to be positive this year because of the coming election, which will result in better cash flow in the market," marketing director Chatchai Wiratyosin said. "Without any surprising incidents after the election, I believe the overall economy and the beer industry will be quite positive."
Chatchai said the company achieved 2percent growth in beer sales last year, which was in line with the growth of the overall Thai beer industry.
"We expect to increase our market share from 64 per cent currently to 65 per cent by the end of this year," he said.
He added that Thai Beverage's Chang beer, its closest competitor, posted a market share of 31 per cent.
"The local beer market, however, has been pressured by the government's strict regulations and ban on advertising."
Chatchai said the overall beer marฌket achieved nearly Bt50 billion in total sales in the first five months of this year.
Singha Corp yesterday held a oneday event at CentralWorld to celebrate Manchester United's success last seaฌson in claiming a record 19th Football League title to become the most successful club in English soccer.
"We invited [Rio] Ferdinand, the world's most expensive defender, to the country as the club's representative to thank Thai fans for the strong support they have always given to the team as well as offering them a chance to join in title celebrations," Chatchai said.
"The Thailand visit is part of Manchester United's Asian Trophy Tour by its stars Ferdinand, Patrice Evra and Park JiSung, who will make separate visits to particular markets in Asia to meet and greet the club's fans.
Chatchai said the company achieved 2percent growth in beer sales last year, which was in line with the growth of the overall Thai beer industry.
"We expect to increase our market share from 64 per cent currently to 65 per cent by the end of this year," he said.
He added that Thai Beverage's Chang beer, its closest competitor, posted a market share of 31 per cent.
"The local beer market, however, has been pressured by the government's strict regulations and ban on advertising."
Chatchai said the overall beer marฌket achieved nearly Bt50 billion in total sales in the first five months of this year.
Singha Corp yesterday held a oneday event at CentralWorld to celebrate Manchester United's success last seaฌson in claiming a record 19th Football League title to become the most successful club in English soccer.
"We invited [Rio] Ferdinand, the world's most expensive defender, to the country as the club's representative to thank Thai fans for the strong support they have always given to the team as well as offering them a chance to join in title celebrations," Chatchai said.
"The Thailand visit is part of Manchester United's Asian Trophy Tour by its stars Ferdinand, Patrice Evra and Park JiSung, who will make separate visits to particular markets in Asia to meet and greet the club's fans.
Two years to buy
The CAT board approved the establishment of a committee to study the state agency's plan for dealing with the concessions after their terms end. The twoyear period for asset buybacks is part of the plan.
CAT owns the concessions of TrueMove, Digital Phone Co, and Total Access Communication (DTAC). The concessions of TrueMove and DPC will end in 2013, and that of DTAC in 2018. Once their concession terms end, they will have to transfer their network assets to CAT on a buildtransferoperate (BTO) basis.
Late this week, TOT's board gave approval for TOT subsidiary ACT Mobile to manage the telecomnetwork assets of cellular concession holder Advanced Info Service after its term ends in 2015.
In a separate matter, CAT will sign a memorandum of understanding with TOT next week on the planned collaboration of their broadband wireฌless and fibreoptic services.
The agreement will see collaboration in three areas. First, the two agencies will allow subscribers of their thirdgeneration networks to roam for voice and data services on each other's networks in a move to carpet Thailand quickly with wireless broadband service.
CAT and TOT have both begun setting up nationwide 3G networks, CAT on its 800megahertz band and TOT on it 2.1gigahertz band. Subscribers with combined 800MHz and 2.1GHz modes in their mobile phones will be able to roam on both networks for their convenience.
In addition, the two state agencies will share 3G network locations to save costs and will determine in which areas they would set up a fibreoptic broadband service to avoid investment redundancy.
CAT Telecom president Jirayuth Roongsrithong said the agency had submitted a request to the National Telecommunications Commission to install and use the 3G network equipment. It is waiting for NTC approval. He said CAT would finish setting up 1,000 3G base stations in August.
CAT will soon explain to the new government's Information and Communications Technology Ministry its plan to spend Bt12 billion on installing the network on its own to serve its business of wholesaling and reselling the 3G service. Jirayuth said the budget would be used next year.
CAT owns the concessions of TrueMove, Digital Phone Co, and Total Access Communication (DTAC). The concessions of TrueMove and DPC will end in 2013, and that of DTAC in 2018. Once their concession terms end, they will have to transfer their network assets to CAT on a buildtransferoperate (BTO) basis.
Late this week, TOT's board gave approval for TOT subsidiary ACT Mobile to manage the telecomnetwork assets of cellular concession holder Advanced Info Service after its term ends in 2015.
In a separate matter, CAT will sign a memorandum of understanding with TOT next week on the planned collaboration of their broadband wireฌless and fibreoptic services.
The agreement will see collaboration in three areas. First, the two agencies will allow subscribers of their thirdgeneration networks to roam for voice and data services on each other's networks in a move to carpet Thailand quickly with wireless broadband service.
CAT and TOT have both begun setting up nationwide 3G networks, CAT on its 800megahertz band and TOT on it 2.1gigahertz band. Subscribers with combined 800MHz and 2.1GHz modes in their mobile phones will be able to roam on both networks for their convenience.
In addition, the two state agencies will share 3G network locations to save costs and will determine in which areas they would set up a fibreoptic broadband service to avoid investment redundancy.
CAT Telecom president Jirayuth Roongsrithong said the agency had submitted a request to the National Telecommunications Commission to install and use the 3G network equipment. It is waiting for NTC approval. He said CAT would finish setting up 1,000 3G base stations in August.
CAT will soon explain to the new government's Information and Communications Technology Ministry its plan to spend Bt12 billion on installing the network on its own to serve its business of wholesaling and reselling the 3G service. Jirayuth said the budget would be used next year.
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