Internet sales: Now it’s a free PC and a free hand phone

Samart Cybernet Co of Samart Group recently launched its new sales promotion package offering a free desktop computer and a hand phone to customers in the highly competitive Internet service market. The company has been the fourth service provider to form a business alliance with PC makers to launch a ‘free PC’ campaign, after A-Net, Internet KSC and Loxinfo. Samart Group has an edge in that it also operates a cellular phone network.

Under the package, customers who subscribe to Samart Cybernet for 2 years, with 30 hours usage time at the rate of Baht 2,299 a month, will be given a free PC and an Ericsson PH 388 hand phone in the ‘Hello 1800’ network, said the sources. The campaign is in corporation with Taiwanese-based PC maker A&L Group, and Hardware House Interactive Co, a major computer trader, they said.

The ‘free hand set’ will also benefit from ‘free call’ promotions by the digital Hello network. Samart Cybernet expects to sell up to 2,000 packages a month through computer distribution chains. The campaign is aimed to attract both organization and home use customers.

Skoda set to come back late this year

Skoda cars, once prepared to set out on Bangkok roads, will be back again in October this year, but this time from the Yontrakij Group. The Czech-made car failed to make ground in Thailand the last time it was brought in by a business group because of conflicts of interests among partners. However, some Skoda models, distributed by independent importers, have already hit the road.

Yontrakij has tried to rebuilt its car distribution kingdom after giving the marketing of Ford and BMW cars back to the two respective car makers, which were about to assemble the cars here. The company is confident that Skoda, which is made in the Czech Republic by Skoda Automobile AS and Germany’s Volkswagen, will be able to compete with Japanese models in Thailand, said the sources.

Skoda Octavia 2.0 liter and 3.0 liter models will be the first to hit the road here. The luxuriously designed mid-sized family car, in sedan and in MPV, will cost between Baht 900,000 and Baht 1 million.

Yontrakij plans to start bringing out Audi A 4 and Volkswagen Passat here later this year.

Dutch software tool producer to expand into Thailand

Ring Telecom of the Netherlands has planned to buy into a Thai integrated solution provider in a plan to springboard into the Asian market. The company, Thai Mark Solutions Technology Co., said it recently signed a memorandum of understanding with the Netherlands-based company and is progressing to forming a joint venture to provide system solutions and software tools for telephony businesses here and the rest of Asia.

According to TMST managing director Somboon Dissathaporn, Taiwan has been singled out as the next target after Thailand in expanding services by the Dutch group. Software tools for Internet phone will be among products brought into their long-term prospect, he said. The Dutch partner will strengthen the company’s financial base, he said.

Ring Telecom, which is listed in the Amsterdam stock market, will conclude the deal with the Thai company in the beginning of the fourth quarter this year.

The two sides have been in the IS business for two years already. An e-payment system will be introduced here while e-commerce business is growing fast in Thailand.

Thailand chosen by condom producer

UK-based London International Group will soon relocate the production of its Durex condoms in Thailand. Durex plans to increase production to 200 million pieces a year. “At least production lines in the US and Italy will be moved into the Kingdom,” said a company source.

Pornchai Piriyabanjerd, marketing manager of London Royal Consumer Products (Thailand), said 70% of Thai-made Durex condoms are for export. The condom market has grown uninterrupted, even in the economic crisis, and the overall industry has anticipated a billing of more than Baht 300 million in 1999, Pornchai said.

The company’s laboratory has won accreditation from the medical science department - a certification which will help ease export procedures a great deal.

Durex also plans to introduce more products to the market this year, as well as offer sex education to schools.

Credit card law to control interest charges

The law committee of the Democrat Party has finished drafting a bill to control and regulate the use of credit cards. The bill, to be proposed to the House of Representatives next week, proposed a curb on interest rates charged on cardholders by banks. At present, it is up to banks to determine interest rates on their own, without limits, as there is no law to specifically regulate the use of credit cards in Thailand.

According to Peeraphan Saleeratvipark, a leading Democrat MP and a committee member, some foreign banks are charging cardholders over 30% in interest rates when they cannot service their payment, which is extremely unjust. The bill is a response to complaints by several hundred cardholders who say they are being unfairly treated by banks, Peeraphan said.

Under the new law, the highest rate should not exceed 18%. The new law will also pose severe penalties on forging and unlawful use of the cards.

The law will empower the Minister of Finance to be the regulator of credit in the use of credit cards.

The law committee says that high interest rates have heightened economic hardship on society.

Philips declares price war on Ericsson

Philips has now joined the latest round of the mobile phone war, bringing down the price of its Genie II hand set in its WorldPhone 1800 system by more than Baht 8,000 - from Baht 23,200 to Baht 14,900 each. The move was to compete with Ericsson PH 768, which earlier slashed its price from Baht 20,300 to Baht 14,500 each.

Motorola, which was once the market leader, has become a big loser in recent months, as newcomers, especially French and German-made models, have become more popular because of their low prices. Motorola cut the price of its popular StarTac X model to Baht 10,430 a set, or more than Baht 10,000 cheaper than it was just a month earlier.

Suppliers, especially in the digital 1800 MHz and digital GSM systems, started the price wars again this month after sales plunged. Ericsson led the industry into the wars earlier this year, as an Ericsson PH 338 costs only Baht 8,000 a set in the pre-paid Prompt package by Total Access Communication.

Resorts prepare to tap from ‘millennium sun’

About fifty tourist resorts in 27 provinces are preparing for the sun to lead the country into a new era in tourism. The Tourism Authority of Thailand has begun a marketing drive to persuade foreign travelers from the Western hemisphere to come to Thailand to get the first glimpse of the millennium sun on New Year’s Day 2000.

Highlands in Chiang Mai and Chiang Rai, and Phu Hin Rong Kla in Petchaboon, will be among places marked as centers to greet, and say goodbye to, the ‘millennium sun’ on the first day of the year in northern Thailand, while Phu Kra Dueng and Phu Rue mountains in Loei, and Pha Taem cliff in Ubon Ratchathani’s Khong Jiem - the eastern most location - will be major attractions in the northeast.

TAT anticipates Baht 20 billion to Baht 30 billion from the ‘millennium sun’ campaign. Advertising will start later this year.

Packages to all major beaches in the south are also included in the campaign.

A three-day/two-night package tour to Pha Taem Cliff, an archaeological site with prehistoric color paintings, will cost around Baht 4,000.

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Updated by Chinnaporn Sangwanlek.