TOT ready to take over True’s fixed operations
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Thai state-owned operator TOT is ready to take over concessionaire True Corporation’s fixed line operations upon the expiry of the concession agreement in October.
TOT has spent months preparing the operational procedures that will be needed to take over the provision of services to around 1.2 million customers.
As part of Thailand’s transition to a licensing regime, the 25-year build-operate transfer concession agreement will be allowed to expire on October 26. True had been paying 18% of its total revenue to TOT under this concession.
Once the concession expires True will transfer its fixed line network assets and customers to TOT.
The operator will lose fixed line service revenue of around 2 billion baht ($57.7 million) per year, while TOT expects to be able to realise revenues of 2.8 billion baht per year from the assets.
TOT plans to start writing to True customers in July informing them of the scheduled takeover of the fixed line operations. The state operator already has its own fixed line business, with around 3.4 million subscribers nationwide.
According to the report, TOT meanwhile plans to spend around 400 million baht this year on fixed line maintenance and repair.
Questions & Answers
Q.What is the specific date when True's concession agreement for fixed line operations expires?
What is the specific date when True's concession agreement for fixed line operations expires?
The 25-year build-operate transfer concession agreement is scheduled to expire on October 26. This marks the transition to a new licensing regime for fixed line services in Thailand.
Q.How much revenue did True pay to TOT annually under the concession agreement?
How much revenue did True pay to TOT annually under the concession agreement?
Under the concession agreement, True had been paying 18% of its total revenue to TOT. Once the agreement expires, True will lose fixed line service revenue of approximately 2 billion baht per year.
Q.What are TOT's revenue expectations from taking over True's fixed line operations?
What are TOT's revenue expectations from taking over True's fixed line operations?
TOT expects to realise revenues of 2.8 billion baht per year from the assets acquired from True Corporation. They have been preparing operational procedures for months to manage this transition.
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