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LTC short of revenue targets, spending up in 2010
National telecom provider Lao Telecommunications Company has reported that revenue for 2010 fell short of the company's targets by over 19 percent.
“Lao Telecom received about 733.3 billion kip (almost US$91 million) in revenue before tax last year,” company Director General, Mr Thongsay Sanexaya, reported on Wednesday.
“This was about a 17 percent decrease on revenue for 2009,” Mr Thongsay pointed out at the company's annual meeting in Vientiane.
The meeting was attended by ministers to the Prime Minister's Office, Ms Bounphen Mounphosay, Mr Xaisengly Tengbiacheu and Mr Khamlouat Sitlakone.
The drop in revenue was attributed to growing competition in the telecom sector, in which four large telecom providers jostle for a larger market share.
“This had an impact on company income, preventing us from meeting our planned target,” Mr Thongsay said.
About 248.16 billion kip (almost US$31 million), or almost 39 percent of the company's 2010 revenue, went to tax contributions, which Mr Thongsay said was just over 70 percent of the planned figure, and a drop of about 8.6 percent on 2009 tax contributions.
Company expenditure in 2010 was about 562.9 billion kip (almost US$70 million), an increase of about 9.5 percent on 2009.
The rise in expenditure was because of investment in service development and network expansion, mainly in remote areas. Another significant factor was the impact of fuel price fluctuations.
Mr Thongsay said the company currently has over 1,500 base stations, including 288 3G stations, serving more than 1.5 million mobile phone customers, covering 49 percent of the telecommunications market.
The company also provided assistance and funding to both state organisations and social communities amounting to about 36 billion kip (almost US$4.5 million) in 2010.
The funding mainly went to the education sector, concert and event sponsorship, traditional performances, meetings, national activities and construction of government projects.
LTC was established as a joint venture in 1996, with the Lao government holding a 51 percent share and Shenington Investments Private Company of Thailand holding 49 percent for a pre-defined 25-year term.
In 2009, LTC had more than 900 mobile phone base stations, including 58 3G stations, a 29 percent increase on 2008.
LTC has grown rapidly in recent years from just 100,000 subscribers in 2002. Laos's other three telecom companies are Enterprise Telecommunications Lao, Star Telecom and the Millicom Lao Company.
Vientiane times
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