(Bangkok Post via NewsEdge) Thailand's TOT plans to cut 35% of its staff over the next few years to help reduce operating costs and improve productivity.
A preliminary benchmarking exercise of TOT's operations, conducted by outside consultants, suggested that over the next three years its headcount should be cut to around 13,000 from the current 20,000.
The carrier also plans to form a new wholly owned subsidiary to provide telecom services, while it will provide the network.
The move will help the company avoid the high regulatory fees charged under the Telecom Business Law, and is one element of a sweeping program of change aimed at streamlining operations at the state enterprise.
It will also establish new subsidiaries to take over business lines such as Internet services and back-office billing, which will be outsourced from the parent company.
It will apply for a Type 1 license, which means it will not have to pay the universal service obligation fee (USO), which stands at 4% of the company's operating revenue.
Instead, it will only have to pay a license fee of 3% of revenue.
The National Telecommunications Commission (NTC) grants Type 1 licenses to service providers that do not have their own networks.
TOT currently has a Type 3 license as an operator and network provider, which means it has to pay license, numbering and spectrum fees. It must also pay the USO, the cost of providing services in areas that are remote or costly to set up.
c 2006 Bangkok Post
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