Advanced Info 2011 EBITDA margin to ease to 45% (Thailand)

Advanced Info Service PCL expects its EBITDA margin to edge lower this year to 45% from 46.8% in 2010 due to an expected rise in handset sales, which yield narrower margins than services revenue.

According to Nattiya Poapongsakorn, investor relations manager, the company expects service revenue growth, excluding interconnection fee, at 4% this year.

Advanced Info booked a 7.9% growth in service revenue to US$2.87 billion last year.

According to Nattiya, Thailand’s largest mobile phone company by subscribers expects to gain around US$9.80 billion to US$13.70 billion from interconnection fees, down from US$19.64 billion last year. Meanwhile, data revenue is expected to surge 25%-30% this year, due to cheaper smart phones and the growing popularity of social networking.

Data revenue jumped 30.5% last year to US$490.2 million.

Nattiya added that the company has budgeted marketing expenses for this year at 2.5%-3% of revenue,  which is higher by 2.1% spent last year.

Belgium’s Telecom Rate Cuts To Be Delayed

BRUSSELS -(Dow Jones)- Belgium’s telecommunications regulator said Tuesday that it will delay planned cuts in the fees mobile phone companies charge other carriers on their networks.

The regulator proposed earlier this year that Belgium’s three mobile operators would have to halve interconnection fees over two years. But antitrust regulators balked at the proposal, said Eric Van Heesvelde, president of the regulatory group, the Belgian Institute of Postal Services and Telecommunications.

The antitrust authorities decided that proposed cuts were unacceptable because operators will continue to pay different amounts for the same service, Van Heesvelde said.

In response to the antitrust authorities, the Belgian regulator said it must come up with new proposals, hence the delay.

“The reduction will still happen,” said Van Heesvelde. “But we have to reduce the gap between the companies.”

He declined to give a timeline for a new proposal.

Legal proceedings may cause additional delays. Both Mobistar and Belgacom’sProximus are appealing the regulator’s proposed rate cuts. Base, a unit of Dutch telecom incumbent Royal KPN, would also be affected by the proposed cuts.

Source- http://www.cellular-new

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