Thc - Executive transition period : Briefing about Businesses under the company - LTC

Thc - Executive transition period

Briefing about Businesses under the company

Sep 1 , 2015

K.Pipat from Chennington ???  , P’Hoong, P’Paiboon and Me.

??? Who is he actually?

K.Pipat knows about the businesses in Cambodia, M Phone, and in Lao, LTC

LTC

Thc holds 49% of its stocks and another 51% belongs to Lao government.

LTC in the past 3 years has really performed very well in business

LTC is led by K.Piyawat : handle relationship with the government well. วางตัวดี เพราะ Lao culture would look differently to people who are not well behaved or acts inappropriately.

The example comes from the expression toward the new board sent from Shennington, Alwin, who acts or questions in the board meeting aggressively and straightforwardly.

Alwin ทำให้  K.ทันสมัย  ( Slight EGO ) รมต กระทรวงไปรษณีย์  ไม่พอใจ เพราะ ไปถามคำถามหรือเสนอความเห็นตรงเกินไปในการประชุม “ไม่ให้เกียรติ”  ปกติต้องมีการคุยกันนอกรอบก่อนและหาข้อยุติ  ก่อนเข้าไปประชุม    นี่ทำให้ Kทันสมัย ไม่ชอบ

LTC board 5 people

2 from THC K.Piyawat  - Sales and Marketing

K.Boy (Pawarit) CFO

3 from Lao government  from Communist Party

สุพล  Operation

กิ่งแก้ว  Technical issue ???

ทองใส

LTC for the meeting 

Prefer to use Thai (for Thai personnel) and Lao (for locals) in the meeting but the documents or slides could be in English.

Not because they don’t know Eng. They can definitely listen and understand but it would be because the locals don’t want to communicate in Eng (maybe Culture issue)

LTC   : Actually would like to have more helps

There was a talk before if K.Jiroj (from M Phone, Cambodia) could come help but the locals would not want it due to his record from working in the failed M Phone 

LTC relies heavily on K.Piyawat at the moment and there is a need to think about successor now

Now there are 14 ???? Thai people in LTC

Both senior and junior,  K.ประคอง senior takes care of the younger very well.  Many current staffs are senior and LTC should pay attention to successor plan now

Competition : Unitel  is a cooperation between Vietnam and Lao (Army side invests on this company by itself, not with having any involvement with the government)

In Lao, the communist party splits the power/ the authority/ the benefits between the government and the army

Unitel tries to take the low income market and has strategy like TRUE, which is trying to expand the networks (building lots of stations) due to lots of invested money from Vietnam.

LTC fight : K.Piyawat must keep giving ทันสมัย updated information that LTC is producing more profits because Unitel often gives false information that they makes more money than that earned by LTC

In Lao, the society has more than 50 % of all citizen with the age less than 24; thus, Lao will have no problem with the shortage of workers/ labor in the future (like thailand).  

LTC thus tries to take the share from the teenage to middle age people

Lao has corruption problem like other SED countries, but not as serious as that in Thailand in a few years ago.

LTC must handle this issue carefully by trying to make all the document as ถูกต้อง as possible. There will be some that could not be 100% legal or ถูกต้อง but LTC must try its best to sort this out.

In the current new contract signing, Lao requests 18% of the money paid to get new contract to be given separately to the government to make this signing happens. It was told that this money will be used for the ministry’s businesses/ operations but it could also be another form of corruption, who knows?

Lao gives out lots of สัมปทาน  but still could not reach the phase that they can collect the return so Lao is in short of money at the moment.

LTC is within the top 3 companies that can return large benefits to the Lao government.

LTC focuses on Quality and Services as a way to fight Unitel which concerns more with the quantity at the moment.

At the moment, LTC has the biggest market share in Lao (49%) and the business in 3G and Data in looking very good (ETL and Beeline have also in this market)

Unitel’s market share is coming after with the gap more than 5% for the market share

Now Unitel is trying to come in to compete in the 3G and Data market

In LTC, there is a politic issue in the company. There are lots of competition for getting promoted.

LTC management team is the one to consider about promotion to management

LTC can finance itself (has lots of cash in hand but not excessively keep cash too)

Manage cash flow well.

LTC situation is it has high network utilisation rate and it has to keep expanding its service capacity.

Otherwise it might have the same situation as that happening to AIS which has the full network utilisation causing the lowered service quality. And this was a reason for the customer switching to another service providers.

LTC.  K.Piyawat aims to get LTC in the Lao’s stock market within next 2 years

He managed to accomplish a business success turnaround.

Regarding the successor, K.Boy is a hard worker but not a total package like K.Piyawat

Another possible choice is K.Niwat who is responsible for doing the roadshow/ corporate account now.

Now the senior, K. ประคอง K.สุพัฒน์ can still take care of the youngers and the company (for at least 2-3 years)

AIS gives lots of advice to LTC

To initiate the new project, LTC will bring the issue first in the 5 management people

Then go on to Chennington ’s EXCOM 

For M Phone, the legal case should conclude within this year.  (there are no staffs in Cambodia)

Waiting for แบ่งเงิน and   the court to close the case and declare bankruptcy

Chinese company came to buy the equipment and aims to open the business.

In Lao there are 4 telecom (LTC + ETL + Unitel + Beeline) , Unitel+Beeline will have equal frequency resources as that owned by LTC+ETL

In Lao,  LTC is urged by the government to buy ETL ( government business with 3-400,000 subscribers)

Besides LTC, Lao gov also offered this deal to China but China still thinks that 200m price tag is still too high.

For LTC to buy ETL, there is need to loan money or to wait until LTC enters the stock market and then ระดม ทุน to make this deal happen

Unitel is trying to buy Beeline (has about 100,000 subscribers)  Gov (รมต) wants Unitel to buy Beeline

Lao, China will build and launch the satellite for it soon

There is an issue about trust with China.  Lao was หลอกให้ซื้อของแพง หรือ ซื้อของไม่ได้คุณภาพ

from China in the past. There is still an image of untrustworthy.