CAT Telecom fishes for revenue in malls
CAT Telecom is counting on providing integrated telecommunication system services to fast-growing community malls as the state telecom enterprise tries to create a new stable revenue stream.
The move is intended to capitalise on changing consumer behaviour as malls are becoming sought-after entertainment hot spots.
“We expect our service revenue from our telecom system service to grow by 10% to 110 million baht in 2017, as owners of malls and retailers are increasingly providing their own communication services and WiFi at malls,” said executive vice-president Somyot Tanapirunthorn.
Under an exclusive deal, CAT has so far installed telecom system services at 12 community malls in Bangkok.
The services range from fixed-line telephone service for both domestic and international calls, broadband internet service on optical-fibre networks and free public WiFi.
The state telecom enterprise also provides telecom system services to condominiums and trading centres.
CAT has invested 20 million baht on average at each infrastructure development project.
CAT charges shop owners located in the community malls based on their real usage. But the state enterprise will have to share 5-10% of the revenue it brings in.
Mr Somyot said providing integrated telecom services to community malls provides higher revenue when compared with the number of users.
He said CAT found that some condominiums the state enterprise provides telecom services to have occupancy rates of 30%. This will inevitably affect CAT’s service revenue in the long-term.
CAT first installed integrated telecom solutions for a community mall at Megabangna in 2009.
The state enterprise is in talks with two prospective malls to provide telecom infrastructure services. They are Megabangna mall for the second phase development and Icon Siam, a high-rise residential and shopping mall project along the Chao Phraya river.
CAT yesterday was selected to install integrated telecom solutions at Paseo, a Japanese-style community mall located on Kanchanaphisek Road under a sevenyear contract.
Located on a 50-rai plot, Paseo Kanchanaphisek has 235 shops including banks, retail stores and restaurants.
CAT now operates services under a survival plan. The government ordered CAT to eliminate unprofitable ventures and focus on its six core businesses consisting of telecom infrastructure, telecommunications towers, international gateway and submarine cables, mobile phone service, telephone and broadband Internet services and IT services.