CS LoxInfo sees high potential in WiMax

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CS LoxInfo sees high potential in WiMax 
Bangkok Post: 16 Aug 2010
CS LoxInfo sees high potential in WiMax

CS LoxInfo, the internet-service arm of Thaicom Plc, is looking to diversify into wireless broadband WiMax service to develop new revenue streams for the future.

The shift is necessary as the company needs to prepare for the expiration of fixed-line telephone concessions in a near future, said managing director Anant Kaewruamvongs.

The move is also aimed to accommodate the increasing demand for bandwidth-intensive internet access and other communication services.

CS LoxInfo plans to apply for a WiMax licence with the National Telecommunications Commission (NTC) once the rules are clarified for licensing-based contracts with no auction fees, he said.

He also said that a WiMax (Worldwide Interoperability for Microwave Access) licence should be valid for more than 10 years, as the hardware life cycle of broadband equipment is about seven years. Building a broadband network would take at least five years to break even.

WiMax is a wireless broadband technology that provides performance similar to Wi-Fi networks but with the coverage and quality of service of cellular networks. It is intended for wireless ''metropolitan area networks'' since it can provide broadband wireless access up to 50 kilometres for fixed stations and 5-15 km for mobile stations. In contrast, the WiFi local area network standard is limited in most cases to 30-100 metres.

Mr Anant also said he strongly disagreed with the NTC's bidding rules for 3G mobile broadband, which require a starting bid price of 12.8 billion baht per licence. The fee is too high and companies would have to pass some costs on to consumers as a result, he added.

CS LoxInfo posted a consolidated net profit of 96 million baht in the second quarter of this year, up 11% from 86 million in the previous quarter. Revenue rose 1% from the first quarter to 665 million baht, and compared with 646 million in the second quarter last year.

Of the total revenue, internet service accounted for 57% or 381 million baht, voice and mobile content contributed 15% or 100 million baht, Yellow Pages 21% or 139 million and the remaining printing service was 7% or 45 million baht.

First-half profit was 182 million baht, or 0.24 baht per share, up 33% from the same period last year, on revenue of 1.323 billion baht, up 2%.

The company's board approved an interim dividend of 25 satang per share for the six-month period, or 93% of first-half operating performance.

Mr Anant said that even despite shrinking revenue from the Yellow Pages service, the 17% increase in internet service and the 11% rise from voice and mobile content revenue, along with efficient cost management efficiency, offset the decline.

Yellow Pages contributed 26% of total revenue in the second quarter last year and dropped to 22% in the first quarter this year. The business accounted for 14% of CSL's second-quarter profit, compared with 21% in the first quarter and 35% in the second quarter last year.

Mr Anant said the company planned to focus on providing internet data centre service and IT solutions to capitalise on the increasing demand and create new revenue streams.

It also plans to add new online advertising services on social networks to tap the new marketing channel.

http://www.bangkokpost.com/business/telecom/191253/cs-loxinfo-sees-high-potential-in-wimax