The infrastructure fund will help build undersea cables

The government remains keen on the 5-billion-baht submarine cable project, possibly with help from the infrastructure fund.

According to Songporn Komolsuradej, permanent-secretary of the Ministry of Digital Economy and Society, CAT Telecom Plc has been assigned to conduct a feasibility study regarding investment and later make a proposal to Deputy Prime Minister Prajin Juntong, who chaired yesterday's meeting of the committee on electronic transactions development.

The submarine project is part of the government's hard infrastructure development plan to promote Thailand as an Asean digital gateway.

Previously, CAT Telecom PLC had been assigned to take responsibility for construction of the national submarine cable. 

The project, however, failed to get off the ground, as the state-owned company has yet to finish its organisational restructuring as required by the government's plan to set up a national holding firm.

The cabinet in August approved the draft State-owned Enterprises Improving Governance Bill, which will play a vital role in driving state-backed firms to improve their services.

The bill calls for a five-year strategic development plan for each state enterprise to pursue and conform to the country's national economic and social development plan.

Under the bill, the national holding company will oversee 12 corporatised state enterprises, including CAT Telecom. Assets of the 12 state enterprises would be transferred to the national holding firm within 180 days of the bill coming into force.

The bill is expected to come into effect by the end of this year or early next year if it is approved by the National Legislative Assembly.

"It's highly likely that the submarine cable will get financing from the infrastructure fund instead of from the government budget," she said, insisting that the government has yet to scrap the project as earlier reported.

According to Mrs Songporn, the Digital Economy and Society Ministry has already set aside a 3 billion baht budget in fiscal 2017 to invest in the submarine cable.

In March, the government approved the allocation of 20 billion baht from its fiscal budget for the ICT Ministry to construct hard infrastructure under the digital economy policy.

Of the total, 15 billion baht is slated to be invested in broadband internet networks for 39,000 villages nationwide.

 5 billion is for the construction of submarine cables

Additional submarine cable routes could reduce IP transit costs to internet service providers in order to lower the cost of internet services. This could in turn promote broadband internet access throughout the country, thus narrowing the digital divide.

Increasing capacity via submarine cables and links is essential to handling greater internet traffic.

Currently, CAT owns six submarine cables, while TOT Plc has two.