World Dialogue on Regulation

According to a report by Business Day, based on regulatory developments, Total Access Communication, Thailand’s second largest mobile operator, says that it will continue to target lower revenue subscribers.

“The regulatory changes would help us see higher bottom line growth although we expect top line growth may begin to slow down,” said Petter Furberg, chief financial officer of Total Access, the operator of DTAC network.

Today, approximately 83% of the company’s subscriber base uses prepaid service. Despite the heavy capital outflow in building its network, which currently has 92% population coverage, DTAC hopes to be able to increase its EBITDA margins gradually in the years to come. Furberg said that improvements in earnings would likely be more visible when the newly established National Telecommunication Commission (NTC) starts to make its various regulatory changes.

The senate appointed seven members to the telecommunications regulatory body on August 24 to supervise the telecommunications sector's deregulation ahead of liberalisation in 2006. The NTC is expected to assume its responsibilities soon after receiving royal endorsement. Its key job is to issue new telecom licenses that will allow operators to change their existing service licenses to cheaper ones.

Intelecon Research & Consultancy Ltd. 04/10/2004