CAT cuts int'l internet gateway fees

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CAT opens Asia America Gateway 
The Nation: 16 Dec 2009
CAT cuts int'l internet gateway fees
By USANEE MONGKOLPORN THE NATION


CAT Telecom is cutting the fees for its international Internet gateway service from today in an effort to maintain its IIG customer base amid bruising competition from private telecom operators.

The rates will come down by between 10 per cent and 60 per cent.

CAT today will also open the Asia-America Gateway it has jointly built up with other 18 leading telecom parties.

The gateway is a high-bandwidth fibre-optic submarine cable system that connects Southeast Asia to the United States.

The state agency had dominated the local IIG scene until the National Telecommunica-tions Commission opened up the market several years ago by granting IIG licences to private telecom operators. Among the new players under NTC licences are True Corp and Jasmine International.

CAT senior executive vice president Sompol Chantaraprasert said its IIG service normally brought in annual revenue of about Bt1 billion. The expected revenue fall from the cut in fees should be offset by rising IIG customer numbers.

CAT expects to post broadband service revenue of Bt7.2 billion this year, versus the target of Bt8 billion, due to the economic downturn. The service generated only Bt6 billion during the first 10 months of the year, he said.

He added that CAT targeted higher broadband revenue of Bt7.5 billion next year. Broadband accounts for half of its income, while the rest is from the overseas call service.

Its broadband business comprises two main services: IIG and leased lines, which brought in Bt5 billion during the first 10 months of the year; and broadband Internet service, which generated revenue of Bt1.2 billion. Both services tap corporate customers.

Sompol added that CAT's broadband business development would have many highlights next year, including the joint exploration of WiMax wireless broadband technology with MCOT.

CAT will sign an agreement with MCOT soon on the plan to jointly offer TV and video programmes on a trial basis via WiMax, using MCOT's 2.6GHz spectrum. They are expected to conduct a trial in the first quarter of next year.

MCOT has already asked the NTC if it can air programmes on the spectrum. The regulator has yet to grant WiMax licences to any party.

CAT plans to invest about Bt500 million on commercial development once it clinches a WiMax licence, Sompol said.

It will also begin to develop the FTTX (fibre-to-the-x) project at a cost of Bt6 billion, hoping to make it a major new revenue source.

The service will provide broadband Internet and multimedia content via a fibre-optic network connected directly to homes and other buildings. CAT's service will initially focus on greater Bangkok.

TOT has also developed an FTTX service, which will make its debut in Phuket this Sunday.