Article Abstract:
Thai telecommunications companies are doing spectacularly well but worry that political events could shift the tide against them. The ten listed companies in the sector saw first-quarter profits rise 87% year-on-year, led by TelecomAsia. However, the election to parliament of Thaksin Shinawatra, founder and head of the telecom and computer giant Shinawatra Group, could signal a political shift in an industry dependent on government contracts and monopolies, but one that is also eager for more open competition and looking for opportunities abroad.
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Article Abstract:
The Thai telecoms industry has been affected by political developments. The privatization of two government telecoms agencies has been postponed and liberalization of the industry could be further delayed following the resignation of Thailand's prime minister, Banharn Silpa-archa. The Communications Authority of Thailand and the Telephone Organization of Thailand were to have been replaced by one regulatory body. Investment costs are rising and competition is intensifying so private sector players are losing patience.
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Article Abstract:
Proposed partial privatizations of two Thai telecommunications monopolies and efforts to open the installation of new land lines to competitors have aroused protests on both sides. In the short term, contracts to install 1.9 million lines would violate the letter of the agreements that TelecomAsia and Thailand Telephone & Telecommunications signed, giving them the sole right to install such lines through 1998. How the debate is resolved could have a major impact on the Thai stockmarket.
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