CAT executives yesterday met with about 200 employees after the State Enterprise Policy Office (SEPO) on Monday gave TOT and CAT one year to complete the merger.

Sangvorn Phumtien, president of CAT’s union, expressed concern that the unclear merger plan would affect all of CAT’s employees. They have to move to the new companies without a strategic plan. They need more details from the government.

Surapant Meknavin, acting president of CAT, said the agency would report the employees’ request and queries to the Information and Communications Technology Ministry. However, CAT would also ask the ICT Ministry for an exclusive status to expand the network for the merging companies.

The SEPO ordered the transfer of their transmission and fibre-optics networks to National Broadband Network Co (NBN) with Bt15 billion of assets, their Internet gateway and submarine cable networks to Neutral Gateway Network Co (NGN) with Bt5 billion of assets and their Internet data centres to IDC Co.

According to the government’s plan, NBN and NGN will remain state enterprises while IDC Co will be converted into a private company.

The three companies will be listed on the stock exchange in the future.

CAT and TOT will each hire a consultant and complete a study on the merger within three months. Then, the three companies will be set up in six months, as both CAT and TOT have to transfer all of their assets within one year.

The other flagship services and assets of TOT and CAT, including fixed broadband, mobile phone and telecom towers, will remain with TOT and CAT, which will act as holding companies.

TOT’s 15,367 employees and CAT’s 5,995 employees will be asked to move to seven companies on a voluntary basis.

TOT Holding Co will have 4,000 staff and CAT Holding Co 2,650.

TOT’s Fixed Broadband Co will have 3,000 employees while CAT’s Fixed Broadband Co will have 1,500.

NBN will get 5,500 employees – 4,500 from TOT and 1,000 from CAT.

NGN will get 550 – 350 from CAT and 200 from TOT.

IDC Co will get 300 – 200 from CAT and 100 from TOT.

According to the plan TOT and CAT, will launch an early-retirement programme. TOT needs 3,500 employees to join the early-retirement plan while CAT eyes 600.

CAT’s annual revenue has gone downhill since 2013, when income from its telecom concessions ended.

Last year, CAT posted Bt54.15 billion in revenue and Bt3.58 billion in net profit – down from Bt55.60 billion in revenue and Bt3.64 billion in net profit in 2014 and Bt74.01-billion revenue and Bt7.24-billion net profit in 2013.

Last year, TOT posted Bt47.90 billion in revenue and a Bt5.69-billion loss, down from Bt63.20-billion revenue and Bt1.95-billion net profit in 2014 and Bt87.13-billion revenue and Bt.41-billion net profit in 2013.