Central sells stake in Big C Thailand to finance VN deal

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Central-sells-stake-in-Big-C-Thailand-to-finance-V-30285674.html

BIG C DEAL

CENTRAL GROUP yesterday confirmed it had sold its remaining 25-per-cent stake in Big C Supercenter to TCC Group, a holding company owned by tycoon Charoen Sirivadhanabhakdi.

An industry source said Central probably made this decision because of its ownership in Tops Supermarket and FamilyMart. Parts of their operations overlap Big C’s, he said, adding that hypermarkets are not Central’s business focus for Thailand. He also noted that the value of Big C Thailand was far higher than Big C Vietnam’s.

“Vietnam seems to be more interesting to Central, judging from the financial sums to be invested in Thailand and possible cannibalisation of Tops and FamilyMart,” the source said.

Central, the largest retail conglomerate in Thailand, accepted a tender offer from TCC Group. The deal, worth at least Bt50 billion, will help Central finance the purchase of Big C Vietnam.

Central declined to provide any details on the deal, saying its executives were travelling outside the country.

Central Group, which has interests spanning from hotels and resorts to property and restaurants, also bid when Casino Group was selling its Thai assets, eventually losing out to Charoen. He bought the French retailer’s majority 58.6-per-cent stake in Big C Thailand for 3.1 billion euros (Bt124 billion) in February.

Central in partnership with Nguyen Kim Group recently acquired Big C Vietnam from Casino for 920 million euros. Central Group chief executive officer Tos Chirathivat said the acquisition represented the strength of Central’s will to keep expanding its business in Asia. Operating for more than 18 years, Big C Vietnam has 43 stores nationwide, comprising 33 hypermarkets and 10 convenience stores, and 30 shopping malls. Total revenue in 2015 was about 586 million euros.

Quant, an independent financial advisory, applied eight methods to calculate the value of Big C Thailand, suggesting fair prices ranging from Bt152.7 to Bt265.7 per share. The highest price came from the comparison of the company’s price-to-earnings ratio and other domestic retailers’ in the past 12 months.

State auditor finds against simulcast programming of Channel 3

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/State-auditor-finds-against-simulcast-programming–30285665.html

DIGITAL TV

THE SIMULCAST of Channel 3’s full analogue programming via digital channel 33HD, run by Channel 3’s sister company, appears to violate broadcasting regulations, the Office of the Auditor General (OAG) has found.

The state auditor is calling for either revision or revocation of the National Broadcasting and Telecommunications Commission resolution made on September 29, 2014, to allow BEC-Multimedia – the operator of digital-TV channel 33 in high-definition – to simulcast Channel 3’s full analogue TV programmes.

According to a source at the NBTC, the OAG sent an urgent notice in writing to the chairman of the broadcasting regulator on April 19 about its investigative report related to the NBTC’s transition from the analogue system to digital.

In the letter, signed by auditor-general Pisit Leelavachiropas, the state audit office found that three out of five members of the NBTC’s Broadcasting Committee had agreed in 2014 to grant permission to BEC-Multimedia to transmit all programmes from Channel 3 in support of the national transition to digital broadcasting.

The three assenting members were Thawatchai Jittrapanun, Supinya Klangnarong and Peerapong Manakit, while Natee Sukonrat – chairman of the panel – and Taweesak Ngamsanga had opposed the idea because BEC-Multmedia and Bangkok Entertainment Company were not the same entity.

The state auditor also acknowledged in its letter that BEC-Multimedia was definitely a separate corporate entity from Bangkok Entertainment Company – the analogue operator of Channel 3 – even though both companies were owned by the same shareholders and were under the management of stock exchange-listed BEC World, according to the NBTC source.

BEC-Multimedia won a licence to run a digital terrestrial-TV channel in the high-definition category two years ago, while Bangkok Entertainment Company runs Channel 3 under an analogue broadcasting concession contract with MCOT.

Under Article 43 of the Act on Organisation to Assign Radio Frequency and to Regulate Broadcasting and Telecommunica-tions Service and Article 9 of the Operation of the Sound Broadcasting Service and the Television Broadcasting Service Act, a radio frequency licence for sound broadcasting and TV broadcasting is the exclusive right of the licensee – and is not transferable.

Meanwhile, the authorised licensee shall carry out its broadcasting business by itself, and business management either whole or in part shall not be rendered or permitted to another person to act on its behalf.

However, allocating the time slot to another person to run programming shall be allowed in accordance with the criteria and procedures prescribed by the NBTC, while the authorised licensee is allowed to allocating a maximum of 40 per cent of its time slots.

The state auditor also pointed out that from October to December 2014, BEC-Multimedia had received Bt407.45 million from Bangkok Entertainment Company in return for telecasting Channel 3 programmes via its digital-TV channel.

It maintained that this indicated that the two entities’ operations were completely separate, while the full simulcast via digital channel 33 appeared to breach the criteria and procedures prescribed by the NBTC.

Given those facts, the OAG has urged the NBTC as the broadcasting regulator to either revise or revoke its 2014 decision on this matter, according to the source.

Lazada starts up tech hub in Thailand

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Lazada-starts-up-tech-hub-in-Thailand-30285618.html

LAZADA GROUP has opened a technology hub in Bangkok to drive strategic mobile development initiatives that it says will elevate the experience for Lazada’s shoppers and sellers across Southeast Asia.

The Lazada Tech Hub in Thailand will focus on advancing the design and engineering of the e-commerce group’s mobile shopping and selling sites and apps for Southeast Asia.

With almost 30 million app downloads and more than 60 per cent of its gross merchandise volume represented by mobile sales by the end of 2015, Lazada Group has been investing in m-commerce through new app and mobile site initiatives.

“Mobile innovation is a discipline any serious online player must build, and having the best talent is critical to designing products and solutions that are not only intuitive but improve the quality of experience and life for our consumers and sellers,” said Ifor Evans, Lazada’s chief technology officer for operations.

“We believe that Thailand attracts a highly skilled talent pool. And, as the leading shopping and selling destination, Lazada is both enviably positioned and committed to raising the bar for mobile and tech development in the region.” In the next few months, Lazada Tech Hub aims to hire more than 50 talents, including iOS and Android developers, Go Programming Language developers, and quality assurance automation engineers. The tech-hub team will operate from EmQuartier in Bangkok’s central business district.

Lazada Group says it established an early presence in bringing high-value tech development to Southeast Asia when it opened its first tech hub in Ho Chi Minh City in November 2012. With Lazada’s rapid growth in the region, a second tech hub was opened in Moscow in February last year. Together, the Lazada-owned-and-operated tech hubs in Thailand, Vietnam and Russia are dedicated to driving world-class product engineering and technology infrastructure, placing Lazada at the forefront of technology innovation in Southeast Asia, the company says.

Chinese e-commerce giant Alibaba announced last month it would pay US$1 billion (Bt35 billion) for a controlling stake in Lazada.

What’s next for Big C Vietnam after Thai takeover?

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Whats-next-for-Big-C-Vietnam-after-Thai-takeover-30285614.html

THAILAND’S CENTRAL Group and its local partner Nguyen Kim Trading Company have finally won the fierce battle for Big C Vietnam after offering 920 million euros (Bt37 billion) to France’s Casino Group.

Central announced its success but did not disclose details about the capital structure. Electronics and appliances retailer Nguyen Kim is 49 per cent owned by Central.

There were 20 suitors for Big C Vietnam, most of them big players like Aeon of Japan, Lotte of South Korea, BJC and Central of Thailand and Saigon Co.op and Masan of Vietnam.

Big C’s revenues last year reached 586 million euros. It is second only to Co.opmart in number of stores, meaning the acquisition of Big C Vietnam is expected to help Central save several years it would otherwise have spent in developing in the Vietnamese retail market.

The presence of many foreign retailers in the country, including from Thailand, will mean a wide range of high-quality goods at reasonable prices for consumers.

The flip side is that Vietnamese producers and suppliers are apprehensive. After all, despite being opened up only recently, over half of the retail market has already been captured by foreign retailers.

Significantly, many of them have ambitious plans to produce right here in Vietnam.

Central’s commitment to continue using local products; maintaining strong relationships with Big C customers, employees and local authorities; and sourcing local goods for Big C stores has not allayed the apprehensions.

Thai companies are gradually acquiring major wholesale and retail companies in Vietnam – it was Metro first, then Nguyen Kim and now Big C, all within a short period.

According to the General Statistics Office, last year Vietnam imported US$8.3 billion (Bt292 billion) worth of goods from Thailand. The figure was $1.8 billion in the first quarter of this year.

The General Department of Customs said Thai goods imported into Vietnam are becoming more diverse, ranging from vegetables, fruits and consumer goods to high-value products such as automobiles.

The number of autos imported from Thailand has risen very quickly. Last year, Vietnam imported 26,700 vehicles from China, 26,500 from South Korea and 25,000 from Thailand, but this year Thai auto imports have overwhelmed the others with 7,800 compared to 3,500 and 2,260 for China and Korea.

Analysts said the Vietnamese retail market, since it has opened up, cannot avoid foreign players, especially since it is worth tens of billions of dollars.

Foreign retailers like Metro and Big C have not only prime locations in cities and provinces but also experience promoting themselves to Vietnamese consumers.

Thai enterprises, for instance, use several tricks. Metro, though still distributing Vietnamese goods, uses the best spots in its stores to display Thai goods in addition to offering promotions on them with big discounts of 4-15 per cent.

Vietnamese suppliers, unable to sustain the competition, have to gradually reduce selling to Metro.

The problem for Vietnamese businesses is that for a long time they have focused on exports and neglected the domestic market.

The lack of cooperation among domestic businesses also makes them weak and unable to compete with foreign rivals.

Analysts also said Vietnam still lacks a specific and transparent economic needs test for foreign retailers to protect domestic suppliers.

This, along with their deep pockets, has enabled foreigners to win prime positions. Not only Central, which now has 100 stores with about 6,600 employees in Vietnam, but also many other foreign retailers such as Ministop and Aeon of Japan, Lotte of South Korea and Auchan of France are expanding their presence in the country. Inversely proportional to the expansion of foreign investors is the slowdown of domestic retailers such as Hapromart, Sapomart and G7 Mart. Even Saigon Co.op and Winmart have a struggle on their hands. Vietnamese goods sold in Metro have reduced from 10 per cent of the total to 1-2 per cent now. A similar situation is expected at Big C in the future.

 ‘RETAILERS MUST GROW UP’ 2B

Non-members may be able to buy Kantar TV-ratings data

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Non-members-may-be-able-to-buy-Kantar-TV-ratings-d-30285608.html

THE MEDIA Research Development Association might allow UK-based Kantar Media to provide its multi-screen audience data commercially to clients that are not members of the MRDA, according to an industry source.

Speaking on the condition of anonymity, the source said this solution could ease tension among members of the MRDA that were worried about the cost of establishing a new TV and multi-screen ratings-measurement system managed by Kantar Media under a five-year contract awarded by the association.

The source also said this solution might ensure that the costs to be paid by each member on a quarterly basis would be unchanged despite some changes in membership numbers.

To set up this new rating system, the MRDA needs Bt1.5 billion from its members, mainly raised by broadcasters of commercial digital terrestrial TV, followed by cable/satellite TV operators and media agencies.

The hope of getting a Bt380-million subsidy from the Broadcasting and Telecommunications Research and Development Fund for the Public Interest appears to be fading away after the MRDA’s first attempt failed to meet key requirements last year.

In the meantime, some leading digital TV broadcasters have said they are hesitant about switching from Nielsen to the audience-measuring system, especially after Nielsen Thailand announced it was expanding its sample size to cover multi-screen content.

The next generation of television audience measurement run by Nielsen can measure viewership across platforms such as television, computers, smartphones and tablets, it says.

Nielsen’s new service appears to be a challenge to the multi-screen audience measurement being set up by Kantar Media.

In a previous interview, it was revealed that Kantar Media planned to set up an office in Bangkok and have 100 employees to support its TV rating service.

To build and operate the new multi-platform TV rating service, the company will take a year to deploy survey panels before delivering data to the media industry. Through collaboration with its sister company TNS Thailand, Kantar Media says it is establishing a specialist audience-measurement team in Bangkok.

Under the five-year contract that was awarded by the MRDA, the system will comprise a representative panel of 3,000 homes to measure multi-platform TV viewing. When launched next year, it will measure viewers’ behaviour not only on TV sets but also on tablets, smartphones and personal computers, delivering a complete picture of actual TV consumption in Thailand.

Kantar Media conducts TV measurement services in more than 55 markets worldwide.

Fourth Hard Rock Cafe opens on Koh Samui

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Fourth-Hard-Rock-Cafe-opens-on-Koh-Samui-30285605.html

HARD ROCK Cafe has opened its fourth outlet in Thailand on Koh Samui.

The 1,250-square-metre cafe was opened last Wednesday in the heart of Chaweng, the island’s entertainment hub. The new Hard Rock Cafe Koh Samui joins three Hard Rock Cafe locations in Thailand, in Bangkok, Phuket and Pattaya.

“Hard Rock has been an established presence in Thailand for nearly 25 years, and we look forward to expanding our dynamic brand to the lively dining and nightlife scene in Koh Samui,” said Steve Yang, Asia area vice president for franchise development and operations at Hard Rock International.

“Hard Rock Cafe Koh Samui marks our fourth location in Thailand and speaks to our continued commitment to expand to iconic cities throughout the Asian market.”

Hard Rock Cafe Koh Samui will be represented by Destination Resorts, which has already helped to expand the brand in Thailand as the franchisee of Hard Rock Cafe Phuket.

Located on Chaweng Beach Road, Hard Rock Cafe Koh Samui will feature indoor seating for 200 guests and a spacious outdoor terrace and bar that can accommodate up to 100 people.

The new cafe will also offer an outdoor pool area complete with private bar and guest cabanas. A large outdoor stage will feature live music and entertainment from Koh Samui and around the globe.

“We are pleased to further strengthen our partnership with Hard Rock with the opening of a new cafe in Koh Samui, a vibrant and bustling [island] with a unique connection to food and music,” said Gary Murray, chief executive of Destination Resorts.

“Hard Rock Cafe Koh Samui will undoubtedly be a must-see for both visitors and locals alike, and we look forward to continuing the brand’s success in Thailand.”

The company says that since it was established in 1971, Hard Rock has been committed to a wide variety of philanthropic causes and activities around the world. In every Hard Rock location, the staff makes it a priority to become a valuable community partner, and Hard Rock Cafe Koh Samui looks forward to continuing this tradition, it says.

THAI to cash in on technical services

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/THAI-to-cash-in-on-technical-services-30285544.html

AS PART of its three-year corporate rehabilitation plan from fiscal 2015-17, Thai Airways International’s Technical Depart-ment has set a new strategy with the ambitious goal of turning its services from a cost centre into a profit centre within one to two years.

Chalermpon Intarawong, executive vice president of the technical department, told The Nation that according to the strategic plan, the department has improved its operating processes to lower cost while expanding services to increase revenue.

With over 50 years of experiences, THAI is one of the leaders in the maintenance, repair and overhaul (MRO) of commercial aircraft.

Its technical department has over 3,000 staff providing integrated services – line maintenance, light and heavy maintenance, component and engine overhaul including tools & equipment calibration services through three major maintenance facilities – Don Mueang, U-tapao and Suvarnabhumi.

One of the big challenges for the THAI technical department is the new business model through a joint venture course.

THAI earlier signed a memorandum of understanding with Air France KLM Engineering & Maintenance for a feasibility study on joint investment in maintenance of aircraft components. THAI also signed an MoU with a European MRO leader for collaboration on maintenance of aircraft-related components.

“The department will submit a study on the joint venture with Air France KLM Engineering & Maintenance to the THAI board of directors this month for consideration. If approved, it will be the first joint venture for THAI’s aircraft maintenance service. Air France KLM Engineering and Maintenance will bring customers’ works in the region, technologies and funding while THAI will invest in facilities and equipment,” said Chalermpon.

In addition, the technical department is considering an approach by the major regional low-cost carrier to perform maintenance services on their A320 and A330 aircraft at Don Mueang Airport. Once it proves to be a |success, the THAI technical department will serve at least |120 A320 aircraft totally.

One of the Asian MRO leaders from Singapore has expressed an interest in expanding its capacity at U-tapao. This Asian MRO leader is also considering choosing THAI as maintenance base for some of its potential customers including A320 aircraft of Japan’s air carrier.

Chalermpon said that Airbus is also interested in forming a partnership with THAI. During the past two years, both parties have proceeded for a collaboration to establish the A350XWB Training Centre at Don Mueang.

This modern centre is scheduled for opening this September, which will be the first A350 training centre in Asean.

Moreover, Airbus has considered THAI to become an Airbus-approved supplier, providing MRO of A380 aircraft for Airbus’ customers.

Airbus has a strong intention to enhance the capability of THAI’s Technical Department to provide an aircraft heavy maintenace checks C-2 and C-3 of A380 and other Airbus aircraft in THAI’s fleet.

Not just aircraft, Airbus also considered to certify THAI as its approvec supplier for the MRO of components. At Suvarnabhumi, THAI has three hangar bays for A380-size aircraft.

This month, the airline started C2 checks for the first time.

Generally, there are four levels of maintenace check for carrier aircraft. A and B checks are considered as line maintenance, while C and D checks are classified as heavy maintenance. “New partnerships with OEMs [original equipment manufacturers] are among the challenges for MROs.

“OEMs such as Boeing, Airbus and Rolls-Royce are making big inroads into traditional third-party MRO markets through their after-market support,” he said.

According to the analysis, the total MRO in the air transport space for all aircraft classes is forecasted to grow from US$57.7 billion (Bt2 trillion) in 2014 to $86.8 billion in 2020, or 4.2 per cent annually.

While the MRO global market is expanding, growth is at a much faster pace in Asia and India. More than 1,400 new aircraft will be delivered through 2023, as the A320 and B737 are expected to drive the largest share of the MRO market in 2024.

Maintenance normally accounts for 10-12 per cent of total airline operating costs or about Bt18 billion-Bt20 billion a year.

In its fiscal year ending in September, the Department expects to reduce maintenance costs of Bt8 billion. It aims to increase revenue contributed from services to other airlines.

Besides Thailand, THAI provides line maintenance to carriers in Cambodia, Laos, Myanmar, India, Pakistan and Nepal.

This year, the department expects that the overseas service can generate Bt2.7 billion in revenue compared to Bt2.4 billion last year.

Digital channels gain ground

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Digital-channels-gain-ground-30285543.html

TWO YEARS AFTER coming into existence, terrestrial-based digital operators last month gained a 43-per-cent market share – a 14-per-cent increase year on year – while the remaining 57 per cent of viewers watched analog.

The analog figure for March last year was 71 per cent, according to the broadcasting regulator based on media research from Nielsen Thailand.

The National Broadcasting and Telecommunications Commission reported that viewership for all digital TV channels, excluding the simulcasts of five analog channels, continued to grow because they were developing and providing quality TV shows to compete |with the old players. In line with this, programmes made by digital TV broadcasters appeared to be specifically targeting more segmented groups so they were likely to capture more attention.

However, satellite TV receivers were still the biggest platform which people used to enjoy free-to-air TV programmes, accounting for 61 per cent of total households, followed by digital and analog terrestrial TV receivers with 24 per cent. True Visions’ share was 8 per cent and local cable TV operators 7 per cent.

Channel 7 and Channel 3 dominated the market but their combined market share has continuously been dented by the aggressive invasion of digital rivals. Last month, Bangkok Broadcasting and Television’s Channel 7 maintained its market share at 32.71 per cent, but dropped from 39.55 per cent in the same month last year, while the share of Bangkok Entertainment Company’s Channel 3 dropped from 24.86 per cent to 19.95 per cent.

Ranked third was the Workpoint TV digital channel with 11.11 per cent, up from 7.88 per cent last year. Fourth was Mono 29 digital TV with 6.81 per cent, up from 3.5 per cent last year. The competition among key players is intense as each top operator continues to pour huge sums of money into content development.

For example, GMM Grammy earmarked Bt2 billion for its two digital TV channels – One and GMM 25.

RS Channel 8 set aside Bt1 billion, Mono 29 budgeted Bt800 million and Workpoint TV earmarked Bt600 million. However, the sluggish economic condition appears to be a big challenge for broadcasters after advertising spending in the first quarter dropped 9 per cent, said Manee Eab, managing director of Magna Global, a leading media agency under IPG Mediabrands.

She believes that the drop is a result of major brands suffering poor sales.She expects that advertising spending throughout the first half of this year will follow the same trend.

CAT moves to end its issues with DTAC

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/CAT-moves-to-end-its-issues-with-DTAC-30285536.html

CAT TELECOM will propose to the Information and Communications Technology Ministry and to the Cabinet its plan to end disputes with Total Access Communication (DTAC) and set up a joint venture with DTAC, according to the state agency’s acting president Surapant Meknavin.

The plan was approved by the Public-Private Joint Venture panel founded under the Article 43 of the public-private joint venture law on Friday.

Surapant believed that the plan would be implemented within the next few months.

Under the plan, both CAT and its concession holder DTAC would end around 10 disputes via the concession, including the disputes over the ownership of 9,000 telecom towers under the concession. He claimed that DTAC had agreed to transfer the towers under the concession to CAT and establish the joint venture together to manage the towers.

CAT would own 51 per cent of the joint venture, while DTAC will secure the remainder. CAT expects that the joint venture would generate about Bt1 billion in revenue per year. The state agency also expects to gain about Bt16 billion as a result of the dispute settlements.

The plan also involves the possible amendment of the DTAC concession in order to end the disputes with CAT and the appraisal of the disputed telecom towers. The plans need approvals from both the ICT Ministry and the Cabinet.

CAT will also send to its board for consideration the plan to jointly provide a 4G wireless broadband service with DTAC on the idled 20MHz of its 1800MHz. The spectrum concession will expire in 2018.

Both CAT and DTAC have reached an agreement in principle on the deal, which involves the DTAC plan to roll out a 4G network coverage in 9,000 sites for CAT. They will also discuss if DTAC will commit to utilising 85 per cent of this network capacity. CAT will assign the rest to its mobile virtual network operator partners to provide cellular services.

DTAC and CAT will discuss the number of assets under this project each will own.

Cable operators seek to expand into broadband Internet services

ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation

http://www.nationmultimedia.com/business/Cable-operators-seek-to-expand-into-broadband-Inte-30285534.html

THIRTY-FOUR cable TV operators nationwide have recently submitted a joint application for licences to provide Internet broadband service in an attempt to find a new revenue source amid flat growth of their mainstream service.

The National Broadcasting and Telecommunications Commission (NBTC) will consider awarding the qualified applicants three-year licences within 30 days.

Varin Cholhan, vice president of the Cable Thai Association and managing director of Digital Cable of Phetchabun, said last week that the 34 operators come from many provinces including Phetchabun, Chon Buri and Ubon Ratchathani.

Out of the 350 members of his association, about 100 are equipped to provide broadband Internet service, he said.

“Each is expected to launch the broadband Internet service within five months after obtaining the licence. They’re expected to offer a monthly service fee of Bt590, |the same as the major players,” he said.

The companies are aiming for 30 per cent of their cable TV subscribers to also subscribe to their Internet service and expect to break even within two years.

Initially they plan to lease fibre-optic networks from major telecoms such as CAT Telecom and United Information Highway to provide the new Internet service.

“These cable TV operators already have fibre-optic networks but use them for their broadcasting service.

“If they want to use their networks for broadband Internet service, they might have to ask for an NBTC permit, so they will have to use the fibre-optic networks of major telecoms in the initial phase to provide the broadband Internet service,” he said.