Critics denounce TOT, CAT consolidation plan

Critics have urged the government to scrap the planned consolidation of similar core businesses of TOT Plc and CAT Telecom, saying it would only add another operations management problem and open up opportunities for the private sector to take ownership of the two state telecom enterprises when privatisation takes place.

Establishing a telecom infrastructure fund would be a better way to help TOT and CAT to survive in the post-concession revenue era, they said.

Rosana Tositrakul, a former senator and a member of the National Reform Assembly, said she strongly opposed the state’s consolidation plan for TOT and CAT as it could not guarantee the two state enterprises would receive optimal benefits.

“Consolidation is impractical and will do more harm than good to both TOT and CAT,” she said yesterday at a seminar held by the State Enterprises Workers’ Relations Confederation.

The State Enterprises Policy Commission or superboard recently approved in principle proposals for the consolidation of three core businesses of TOT and CAT: transmission and fibre-optics networks; submarine cable networks; and data centres.

TOT and CAT might have to form separate joint ventures to manage and operate the combined businesses.

Ms Rosana said the consolidation plan would inevitably create additional layers of costs, including operations and management, for the two state enterprises as they would have to set up new business units. The government planned to split valuable assets of the three businesses, transferring them to new companies.

Who would assess the asset values for TOT and CAT as well as the transparency of the process, she questioned. More importantly, she said the three new companies might be listed on the SET at some point, opening opportunities for the private sector to take ownership of TOT and CAT.

Anuparp Thiralarp, an independent telecom academic, agreed the consolidation will eventually create another three staterun telecom companies, possibly leading to higher losses.

“The additional companies will create more confusion as they will be operated under the existing old-fashioned, state-run structures,” he said.

Mr Anuparp said TOT and CAT have abundant telecom infrastructure assets. Establishing an infrastructure fund would be a better way for the two agencies to seek more revenue from providing telecom network rental services.

He said the government should set sincere measures to prevent political intervention at TOT and CAT, and ease regulations to encourage them to achieve competitive advantages.

Pansak Siriruchatapong, assistant to the Information and Communication Technology minister, said the government is moving ahead with the consolidation plan for TOT and CAT unless the state can provide a better option.