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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (306)	7/6/2000 8:54:54 AM
From: Dennis Roth	Respond to of 197445

THE NATION (THAILAND)/ Govt to review telecoms projects [All Material Subject to Copyright] e-topics.com Asia Intelligence Wire via NewsEdge Corporation : THE Transport and Communications Ministry will propose two mobile-phone projects for the Cabinet's approval today. These are the 1900 Megahertz and Code Division Multiple Access (CDMA) systems. Both projects are part of Transport and Communications Minster Suthep Thaugsuban's policy to provide the public with cheaper mobile-phone services. Each project will cost Bt1.2 billion to implement. The 1900MHz mobile-phone project was earlier opposed by the National Economic and Social Development Board (NESDB), which said it lacked viability and would be a huge drain on state coffers. According to the project blueprint, the Telephone Organisation of Thailand (TOT), Communications Authority of Thailand (CAT) and Aeronautical Radio of Thailand will establish a joint venture to operate the service. The TOT will hold a 54-per-cent stake in the project while the CAT and Aero Thai will take 40 per cent and 0.2 per cent respectively. Employees of the three state agencies will own 5 per cent between them. The Transport Ministry said the project's internal rate of return was 13.11 per cent. The project will take nine years and five months to break even. It will take time to bear satisfactory returns because of its lower monthly service charge of Bt300, compared with the Bt500 charged by current mobile-phone operators. The service is due to begin next year. In the first year 100,000 subscribers are projected. This is estimated to rise to 300,000 over the next three years. However, the service will only cover Bangkok. To reach provincial areas it would have to link up with an existing service-provider's network. The CDMA project is being overseen by the CAT and covers Bangkok and 10 provinces in Central Thailand. The Communications Ministry is seeking approval for its plan to expand the network to cover 40 per cent of upcountry areas. Its return rate is 23.83 per cent, with an anticipated break-even period of four years and nine months. The NESDB has not opposed this project because it is an extension of the CAT's existing plans to improve telecoms services in the country. PIYANART SRIVALO/The Nation <<Asia Intelligence Wire -- 07-04-00>>