2002 saw the beginning of a transitional period for Thailand’s entire telecommunications industry. For almost 50 years, the Telephone Organization of Thailand (TOT) had been the leading and only provider of telecommunication services in the country.

On July 31, 2002, however, the formerly state-owned monopoly officially became a public company. The majority shareholder of TOT Public Corporation, as it is now known, is the Thai Ministry of Finance. TOT’s activities are now monitored by the newly created Ministry of Information, Communication and Technology. While resembling a private corporation, TOT remains an important state enterprise. TOT no longer has any control over Thai regulations. Having transformed into a service provider competing in an open market, the company will undoubtedly benefit from the Thai government’s aim to liberalize the industry by 2006 and increase private sector loans. With a clear distinction between its business as a service provider and its former regulator responsibilities, TOT can now focus on profitable ventures.

Sittichai songpiriyakit, president of Telephone Organization of Thailand

Like many telecommunications service providers, TOT has to keep abreast with rapid technological advancements. New technologies and innovation are essential to be able to provide new services tailored for each customer. In line with global telecom operations, TOT expects to use wireless telecommunication technology to enhance service efficiency, and to integrate voice and data communication.

Locally, TOT dominates the fixed line and data market with over 60 percent of the market, and its share is growing. TOT’s intelligent network service for its fixed line network and VOIP (voice over IP) service makes it economical to place long distance calls at about 5 cents per minute instead of the regular rate of 43 cents per minute. This service aims to counter the many promotional packages offered by mobile phone companies and lure traffic back to fixed lines.

And with its exclusive license with the Communications Authority of Thailand (CAT), TOT’s president Sittichai Songpiriyakit sees a promising future in the mobile segment with upcoming “3G” networks. “We may need a strategic partner because the investment to set up the 3G network is very substantial,” he says.

While remaining committed to the domestic market, Songpiriyakit also foresees rapid expansion into new markets once the government has fully liberalized the industry. “Today our presence outside Thailand is limited to only four countries -- Malaysia, Laos, Cambodia and Burma -- but if and when we merge with CAT we will go worldwide,” declares Sittichai confidently.

This planned expansion of their overseas network and services will ensure added revenue for TOT and set in motion the company’s future growth strategy, a strategy which will also rely heavily on its employees. Songpiriyakit acknowledges that one of TOT’s biggest challenges involves inspiring a change within the workforce. Initiating a fresh way of thinking and establishing a new business culture while abolishing out-of-date attitudes within the organization will not be easy, but this shift in priorities is essential if TOT intends to survive in such a highly competitive industry.

“In the past we only concentrated on improving operations inside TOT,” says Songpiriyakit. “Now, this has to change and we have to look outward and focus on understanding our customers’ needs. We need to be as good as, if not better than, our main competitors in our way of dealing with customers. We now have to compete in a free and open market.”

With an immensely experienced workforce of 21,000, Songpiriyakit is confident the company’s capable staff -- all with a wealth of experience -- can meet the challenges of the future.

“We can make use of our employees’ knowledge and experience as we shift from being just a functional organization to becoming a company with employees who are directly responsible for the growth of our business through connecting closely with customers,” he stresses.

“TOT has been around for a long time and we have a very good image as an organization that provides services to the public even in the most remote areas of the country,” concludes Songpiriyakit. “Now that TOT is a full blown corporation, we expect to list on the stock market within the year and we want to make the most of our good image and outstanding reputation. We recognize that in order to achieve our goals, we have to put every effort into growing the company organically, and we are looking at some possible acquisitions and more viable ventures for TOT. We have a vision that within five years we will be the leader in telecommunications in Southeast Asia.”

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