Thailand's state-run telecom agency TOT Plc is facing a revenue shortfall with profits in the past four months of this year declining to 1.267 billion baht (US$40.5 million) from 3.4 billion (US$109.3 million) in the same period last year.
TOT board spokesman Djit Laowattana said yesterday that revenues from January to April this year fell to 9.316 billion baht (US$299.34 million) from 10.039 billion (US$322.7 million) a year earlier.
He said that although revenue-sharing payments from private operators during the past four months rose to 6.7 billion baht (US$215.4 million) from 5.2 billion (US$167.2 million), overall profit was still down.
The state telecom enterprise said revenue in the period totaled 4.9 billion baht (US$157.5) from fixed-line service, a drop of 16 percent, and 336 million baht (US$10.8 million) from public phone service, a 32 percent decline.
However, Djit said that revenues from wireless service rose from 547 million baht (US$17.58 million) to 854 million (US$27.45 million), while ADSL revenue rose 15 percent.
He attributed the poorer performance to frequent changes in top executives--TOT has sacked two presidents this year. He also cited inconsistencies in management and procurement and overall industry trends.
Djit also said that the TOT board was considering a Chinese government proposal for a long-term loan of 20 billion baht (US$643 million) to Thai Mobile to allow the struggling business to offer third-generation (3G) service.
Thai Mobile owes more than one billion baht (US$32.15 million) to Samart Corp for call-centre, billing and distribution services. The TOT board would discuss negotiating a change in the contract with Samart, Djit added.
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