|
Internet services
growing rapidly in provinces
The Internet cafe business not only experienced growth
in Bangkok, but also mushroomed in the provinces over the past few months
after service providers expanded upcountry. There are now over 100
Internet shops in the northeast, in the northern tourist resort city of
Chiang Mai and Nakorn Ratchasima, where there are universities and
colleges.
It is not the time for extravagant Internet cafes, but
it is the turn of small Internet shops which offer speedier connections
and lower prices, as low as Baht 15 per hour. A shop owner in Nakorn
Ratchasima said there are 40 Internet service shops in the city, with
students and school children being the main customers. Faster service and
low prices will be the edge in competition, he said.
Internet service shops have opened in Chonburi in the
east, Pitsanulok in the north, and Pattanee and Haad Yai in the south.
There was only one Internet shop in Chiang Mai two years ago, but there
are currently more than 70 shops, mainly in areas around the universities
and colleges - some even charge as low as Baht 5 per hour.
Thai-owned car
companies to restructure after take overs
Several Thai companies that were formerly involved in
auto sales in the domestic market will have to adjust after their
businesses were taken over by Japanese or Korean partners. The KPN group,
which lost its majority ownership in Siam Yamaha Co. to Japan’s Yamaha
Motor Co. last year, said it had to be more on its own.
Yamaha Motors spent Baht 500 million to bail out Siam
Yamaha from a financial crisis after KPN became heavily in debt. A KPN
source said the new business structure of the group is expected to be
announced by the end of October. For instance, KPN subsidiaries that
currently supply motorcycle parts to Siam Yamaha would have to find more
customers, said one source.
Siam Yamaha used to be KPN’s largest source of income. Siam Yamaha
sold 50,510 Yamaha motorcycles in the first nine months this year, or 12%
of the overall market which sold a total of 412,580 units in all.
CAT board scraps Baht
1.2-billion CDMA equipment purchasing bid
The Communications Authority of Thailand will have to
scrap the results of the bidding last March after the CAT board resolved
in a meeting on Tuesday (October 26) that the bidding was
‘inappropriately’ conducted. CAT is expected to announce the
resolutions later, and will renew the bidding criteria, CAT sources said.
The board of directors said that the bidding process to
purchase communications equipment in the code division multiple access
system for telecommunications base station in the provinces, must be
approved by the cabinet first. A total of six Thai and foreign firms bid
for the Baht 1.2-billion project, but the bidding results have been
delayed for several months.
Mit Siam International, which uses hardware from
Japan’s NEC Corp, proposed the lowest price. However, the equipment from
Lucent Technologies was approved by the selection committee and Lucent
Technologies Network (Thailand), the bidder, was picked up as the sole
candidate.
However, the board said CAT was not authorized to hold the bidding.
House committee
plans casinos
Instead of dissuading Thai folks from going abroad for
gambling, the Tourism Committee of the House of Representatives is
planning to encourage them to stay and enjoy gambling at major tourist
destinations. Findings show that each month, tens of thousands of Thais
cross the border to patronize casinos in Cambodia, Burma, and Laos.
There are currently eight casinos along the
Cambodian-Thai border, three more along the Burmese-Thai border, and three
others in Laos.
Santsak Ngarmpichet, Chonburi’s representative who
chairs the Tourism Committee, said that the government should legalize
gambling, and introduce and enforce special laws to control the business
in order to promote the tourism industry. “Casinos can be major tourist
attractions in Phuket, Pattaya, and Haad Yai,” Santsak said.
He also said that there must be rules to limit access
to casinos, and only those with Baht 100,000 or more should be admitted to
such places.
Even Islam dominant Malaysia have legalized casinos.
Controversial ISP
gets license at last
EZ Net Co. gained ground last week in its attempt to
set up its Internet Service Provider business, overcoming many hurdles,
doubts, and speculations. But its name has been changed to Hygienic Co., a
joint venture with the Communications Authority of Thailand, said Srisuk
Chantrangsu, chairman of CAT board. CAT will hold a 32% share in the new
venture, at Baht 4.8 million, Srisuk said.
Hygienic Co. will stick to its policy as being the
Internet service provider for education with the lowest possible charging
rate, a course which was set by EZ Net, said Chaisingh Narula, managing
director.
Cherdchai Jearvanont, a local IT trader and distributor
of computer software for education, also became a new shareholder,
Chaisingh said.
EZ Net has vowed to collect only Baht 5 per day from
school children and students, with unlimited access to Cyber space,
provided that the use is strictly for educational purposes.
The company maintains that it had won support from the US telecom giant
TT&T in connecting to international gateways at a very low price.
Banking: No more
redundancy in 2000
The three largest commercial banks in Thailand -
Bangkok Bank, Thai Farmers Bank, and Siam Commercial Bank - have no plan
to further reduce their workforce in 2000, for fear that they would not
have enough manpower to compete in the new environment brought about by
the economic recovery. More than 10,000 employees, including some top
executives, have left the three banks in redundancy programs since 1996.
Tohsak Chongsakul, manager of banking affairs of
Bangkok Bank Plc, said 5,000 BBL employees had joined four redundancy
programs since 1996. There are about 20,000 employees currently working
for the bank. Between 700-800 employees applied for early retirement
compensation packages in the latest redundancy drive which lasted until
the end of October, Tohsak said.
Thai Farmers Bank launched 2 early retirement programs
in 1997 and in 1999, which attracted about 1,750 retirees, but TFB said
there will be no more layoffs. TFB’s has introduced a policy to recruit
no more employees over the next 5 years.
There are currently 10,557 employees at Siam Commercial Bank and the
number is considered appropriate.
Major express
mail players expanding in Thailand
Three major express mail service firms - Federal
Express, TNT, and DHL - have been expanding in the Kingdom and have
further development plans to improve their services, and to inch into
Indochina. Rick Jennings, managing director of Federal Express, said FedEx
has invested a large amount to install an advanced information technology
system to electronically keep track of deliveries in real-time throughout
their operations worldwide.
FedEx said it would further expand its operations into
the Indochinese countries of Laos, Vietnam and Cambodia.
The Amsterdam-based TNT, meanwhile, said its services
have been available on the Internet since the middle of this year.
Delivery of about 70% of the categories currently in service will be
processed via the Net over the next three years, James Oden, managing
director said. The number of Net surfers in Thailand, which is currently
around 900,000, still has the opportunity to grow, he said.
DHL, which was the world’s first in the industry, recently launched a
time guaranteed delivery service aim at serving the growing exports in the
Kingdom. DHL earlier said it would invest about Baht 1.2 billion more in
creating a one-stop service center here.
Retail company to
launch local home shopping channel
Net Tech Marketing Co. has entered distribution deals
with about 100 suppliers and producers to bring products to a new home
shopping channel on Universal Broadcasting Co. cable TV network. The new
service will sell more than 1,000 items, mainly household products,
directly to customers.
Net Tech Marketing was meanwhile preparing to go
e-commerce, bringing direct selling to the Net, to tap into the Internet
boom in the Kingdom. The company has had an agreement with UBC cable TV to
use its channel 10 for 3 years for commercial purposes, said Songdej
Tansurat, managing director.
Home shopping on TV has recently experienced rapid
growth. The service will help producers and suppliers save millions of
baht a year as they will need to spend less to advertise and promote the
products.
The service will collect 25% to 30% from suppliers in GP charges.
Army Chief talls
investors military to withdraw from TMB
The Army Command-in-Chief, General Surayuth Chulanont
told international investors that the Thai military, which currently owns
the majority of Thai Military Bank, will totally withdraw from the bank.
The general’s meetings with international investors have been the
prelude to the bank’s plan to sell capital increase shares early next
year.
According to TMB sources, the Army Chief, who is on
road shows to London, Singapore, and Hong Kong, has also told prospective
investors the bank’s plan to apply for assistance from the
government’s Tier 1 fund, a plan which impresses investors. Foreign
investors knew very little about TMB and the military’s role has been
doubted, said TMB sources.
TMB plans to sell 70% of the capital increase shares to foreign
investors and another 30% to local investors. The bank has adequate funds
in the loan provision to meet with the International Banking Standards.
The first attempts to sell shares last month failed due to negative
factors in the international market.
Copyright 1999 Pattaya Mail Publishing Co.Ltd.
370/7-8 Pattaya Second Road, Pattaya City, Chonburi 20260, Thailand
Tel.66-38 411 240-1, 413 240-1, Fax:66-38 427 596; e-mail: [email protected]
Updated by Boosiri Suansuk |
|