(Bangkok Post via NewsEdge) Profit and revenue declined at CAT Telecom over the first half of the year, due to lower rates and higher fees, a company official said.
The state enterprise reported a net profit of 2.17 billion baht ($57.2 million), down from 2.67 billion baht ($70 million) in the same period the previous year on revenue of 14.7 billion baht ($386.3 million), which was down from 14.8 billion ($392 million).
Fees paid to the National Telecommunications Commission (NTC) were among the reasons for the higher expenditures, said Pisarn Jorpokaudom, CAT deputy president said.
However, Pisarn said CAT Telecom looked likely to meet its 2006 revenue target of 33 billion baht ($870 million), which would be up from 30 billion baht ($792 million) last year.
Most of CAT Telecom's revenue in the first half came from its international call service (36%), concession fees (31%), data transmission and Internet (23%), and radio and mobile phone businesses (7%).
Due to increasing competition from mobile phone companies and Internet protocol providers, CAT Telecom was forced to lower its charges for international calls, earning less revenue.
However, CAT's data transmission business would offset lost earnings.
Jirayuth Roongsrithong, a CAT senior executive vice-president, said employees had been testing the CDMA mobile phone network in the provinces since April. Jirayuth expects the system to be ready for a public test in October.
CAT was in negotiations about CDMA handset distribution with several makers, such as Samsung, LG and Huawei, Jirayuth added.
c 2006 Bangkok Post
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