Thailand’s state-run TOT has reportedly agreed to spend around 58 billion baht ($1.94 billion) in the coming year, part of which will go toward 3G and fiber network upgrades.
According to Thairat, TOT spokesperson and board member Prapan Boonyakiat said that a board meeting held end last week had approved the spending of 30 billion baht for operations, 6.48 billion bhat for upgrades to its existing fiber network and 16.7 billion baht on mobile network upgrades that include a nationwide 3G expansion project. Some of the funding will also go towards a bonus for staff.
TOT had earlier this year awarded a 3G expansion contract to the Samart consortium that included Huawei and Nokia Siemens Networks, and had managed to negotiate the contract price down to 15.99 billion baht from 16.29 billion bhat.
The carrier has yet to decide if it will take out loans to pay for the 3G expansion contract or take up the Samart consortium’s financing offer.
TOT has projected an income of 73 billion baht for 2012 - 45 billion from TOT’s own business and 28 billion from revenue share stemming from the AIS concession. Profit was estimated at 6.3 billion baht for the year.
Projections for 2013, however, are expected to be around the tune of a 10 billion baht loss as TOT will have to return all concession revenue to Thailand’s finance ministry then.