National Telecom maps ambitious 5-bn baht strategy for expansion
The National Telecom is seeking approval for investing 5 billion baht to expand its business operations with a strong focus on artificial intelligence (AI) services and data centres.
The state enterprise’s aim is to boost its competitiveness in the telecom sector.
Managing director Colonel Sanphachai Huvanandana said on Monday that National Telecom (NT) was in the process of obtaining approval from the State Enterprise Policy Committee (SEPC) for its seven business development plans.
Sanphachai said NT submitted the plans to the committee on December 16 but was asked for more details.
He said the seven development plans are:
1. Property development
2. Business opportunities from AI and Big Data technologies
3. Providing digital services to government agencies
4. Setting up joint ventures with private partners
5. Expanding mobile businesses by focusing on sales to government agencies
6. Developing last mile services to offer leasing fibre cables to other broadband operators
7. Seeking partners to compete in broadband services, especially in Bangkok
He said four or five foreign firms have expressed interest in partnering with NT. The centres will be built on a 4-rai (0.64 hectares) plot in NT's Klong Toei office and on a 70-rai plot in its Ngamwongwan office.
Sanphachai added that its two current data centres in Bang Rak and Nonthaburi will reach their full capacity in two years.
He added that the NT will expedite decision-making on the two new centres, as each will take at least two years to build.
“This plan captures SEPC’s attention as it will help save the government a lot of money because state firms will need to use data centres a lot,” Sanphachai said.
He added that the SEPC expects cloud service to grow by up to 20% as Singapore’s growth has plateaued and investors are now seeking services from Malaysia.
Sanphachai said NT will seek help from the Digital Economy and Society Ministry to seek the government’s approval for privileges in cloud service investment so foreigners will be attracted to invest and become partners or clients of NT.
Sanphachai outlined plans to extend NT’s 700MHz frequency services for machine-to-machine telecommunications. The NT also aims to propose a neutral last-mile service by installing a cable tube leading into residences that all broadband operators can use, reducing cable entanglements and lowering installation costs.
Meanwhile, Sanpahchai conceded that the NT has been accumulating losses of 2.5 billion for its broadband services due to strong competition from private operators.
He said the NT has about 2,400 kilometres of broadband cables in Bangkok and adjacent provinces with a workforce of up to 3,000 people, but it could not compete with private operators due to cut-throat promotions.
Hence, he said, NT will seek partners to compete in broadband services in Bangkok. He added that NT expects to continue making losses due to unexpected expenditures, including compensations of some 100 million baht after the NT lost some court cases. Earlier, it expected to make a profit of up to 200 million baht.
As a result, he said, NT will only give staff a 5% pay rise instead of 6.5% as planned earlier.
