Wren,
Currently, I don't think CPPKY would have much of a stake in any CP Group wireless venture in Thailand (see article below) since I believe Thai law limits "foreign" investment to 25%. However, if the CP Group is successful in the wireless arena in Thailand, will they try for China? If they decided to branch out into China, it is likely that one of the CPPKY subsidiaries would be used.
I wonder if they are they going to try and market their Thai wireless service as "prepaid" in the 7-Eleven outlets? They don't have a "built in" distribution system like that in China that I'm aware of so I guess that makes the China wireless market a real long shot.
Viv
CP units in mobile-phone tie-up,The Nation (Thailand);
by USANEE MONGKOLPORN; 05-30-2000
CHAROEN Pokphand subsidiary TelecomAsia Corporation Plc (TA) is to buy a stake in CP's 1800-MHz mobile-phone subsidiary Wireless Communication Service to bring WCS into its telecoms empire, CP chairman Dhanin Chearavanont
says.
In February CP moved the fixed line business into the mobile-phone business for the first time by taking over the dormant WCS from the latter's shareholders in a deal worth Bt3 billion.
Because CP's flagship telecom subsidiary TA was restructuring its debts it could not initiate the takeover itself lest it draw criticism from its creditors, so CP had another of its subsidiaries, Bangkok Telecom Holding (BTH), proceed with the takeover deal. BTH now holds a 98-per-cent
stake in WCS.
Dhanin said that WCS was now looking for a strategic partner and the best mobile-phone equipment suppliers to install its telecom network.
"WCS will have as its first partner TA, which will then be joined by another dynamic company. But TA will not be the major shareholder," the tycoon said.
After TA acquires the stake in WCS, Bell Atlantic, which holds an18- per-cent share in TA, will automatically become its partner. Bell Atlantic may increase its capital to buy a larger stake in the company.
WCS expected to launch its service this October after losing its subscriber base when it closed down owing to the economic crisis.
However, the launch will now be postponed to early next year because BTH has not yet completed either the supplier-selection process or its financial plan for WCS.
"We have to wait for the completion of WCS's telecom network installation before it makes its debut," Dhanin said.
Initially WCS will limit its coverage to the Bangkok area, where it plans to invest approximately Bt5 billion.
The world's leading telecom network equipment suppliers are racing to woo WCS after the announcement of its urgent requirement for a telecom network solution.
To provide services in provincial areas, WCS is expected to link up with the roaming system of Total Access Communication Plc, the country's second largest mobile-phone operator.
CP wants its first mobile-phone service to be a low-cost alternative for consumers who are unhappy about the high charges demanded by existing mobile-phone operators.
But at the end of this year the domestic market will be flooded with lowcost mobile-phone services apart from that provided by WCS.
One of them is City Mobile, which will be launched by Digital Phone Company (DPC), an 1800-MHz mobile-phone operator controlled by Shin Corporations Plc, and the company plans to provide the service at a monthly charge of
only Bt300.
The government also wants part of the action. The Transport and Communications Ministry next week is to submit for consideration by the Cabinet, its own 1900-MHz mobile phone project, which aims to provide a low cost alternative for consumers.
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