Buddy in talks with power utilities

AIS-TOT venture growing too slowly

SRISAMORN PHOOSUPHANUSORN

Advanced Datanetwork Communications, the provider of the Buddy Internet protocol television (IPTV) service, is trying to revive stalled partnership talks with state electricity authorities to provide broadband service over power lines. ''The move is expected to turn the company's fortunes around and help us survive in the business,'' said an ADC executive who asked not to be named.

ADC is a joint venture between the cellular operator Advanced Info Service (AIS) and the state telecom enterprise TOT Plc. It has registered capital of 957 million baht, with AIS holding 51% and TOT 49%. Its main business is the Buddy Broadband internet service.

TOT recently announced a plan to take over the AIS stake amid reports of a lack of co-operation between the two partners.

Somprasong Boonyachai, the AIS executive chairman, said TOT had not informed him of any such proposal. He acknowledged that ADC had been growing much more slowly than expected but he declined to elaborate on the group's policy for digital broadband TV.

Mr Somprasong also said that AIS, as the market leader, in theory should set the pace for broadband TV development. However, in practice, he said the lack of infrastructure did not support mainstream consumer adoption at this time.

To stimulate the business, the source said ADC wanted to use the fibre-optic lines of the Metropolitan and Provincial electricity authorities to distribute advanced IPTV services to homes.

''The negotiations, if settled, are expected to revive our business after we have struggled to attract more customers,'' he said.

The executive said IPTV over power lines enables customers to simply plug in a set-top box to bring broadband into the home directly, with no need to install a new telephone line. The technology delivers data rates in excess of 200 Mbps to support multiple simultaneous video streams, voice and data services.

The electricity authorities would record an IPTV home's electricity consumption online and not through a meter.''Broadband power line technology is set to remake the IPTV business in the Thai market and boost the number of clients,'' he said.

The executive said that ADC expected to conclude an agreement with the MEA and PEA in the next few months. A trial of IPTV service would be introduced in selected housing estates by the end of this year.

He said IPTV could create a new chapter for digital home entertainment broadcasting services. However, he acknowledged that constraints on TOT's ''last-mile'' access network to homes, as well as the two different business cultures, had stunted the growth of ADC.

The source also said that TOT had refused to commit to its share of a capital increase of 300 million baht, expressing doubt about the viability of the investment. In addition, the state enterprise stopped allowing ADC to use its cooper wires for free, and now charges the company between 300 and 600 baht per line.

ADC charges customers 400 and 650 baht a month depending on the package they select. ''How we can pay the surcharge [for TOT lines] and survive in the business if TOT sets an unrealistic fee?'' the executive asked.

Since its launch in April 2005, ADC has signed up only 20,000 subscribers for Buddy Broadband, far short of its sales target of 120,000 for this year.

Bangkok Post

Last Updated : Saturday April 21, 2007