Thai Operator Cuts Subscriber Growth Forecast

Thailand's Hutchison CAT Wireless Multimedia, a CDMA based joint venture between the Communications Authority of Thailand (CAT) and Hutchison Wireless MultiMedia Holdings says that it is halving its customer growth target to 10% - it says due to the economic slowdown, high inflation and oil prices. The company had originally expected to grow its customer base to just under 1.5 million by the end of the year.

Phanop Kasemsarn, vice-president for strategic planning, said Hutch had first-half sales growth of 9% from the previous year.

The operator is negotiating with CAT Telecom to be the sole marketing arm for the latter's CDMA service in 51 provinces outside the 25 central ones now served by Hutch. In exchange, the joint venture will transfer ownership of Hutchison's network worth 40 billion baht in the 25 provinces to CAT free of charge, and shoulder all accumulated debts of Hutch.

According to figures from the Mobile World database, the company ended Q1 '08 with just under 1.1 million customers, and a market share of just under 2%. The company only averaged quarterly growth of around 10% during 2007 though, so the change in outlook is simply maintaining the historic norms for the business.

Posted to the site on 11th August 2008