Telecommunication companies in Laos have been engaging in fierce marketing competition in recent years, forcing the government to take action to end the battle to win the hearts and minds of customers.
Mobile phone service providers have been told to tone down marketing tactics.
Ministry of Post, Telecom and Communication Office Head Mr Phonexay Phommapanya confirmed yesterday that the ministry has ordered telecom companies operating in Laos to stop offering special promotions such as free call credit, sim cards and messaging services in a bid to attract more customers.
The move aims to enforce stricter regulation of the telecom market and ensure fair marketing campaigns are used, he said.
“We will keep a close eye on telecom companies and if they fail to follow the regulations they will be punished in accordance with the law,” he said.
He said that the ministry has the right to regulate service fees to protect the benefits of the people, government and investors.
He also said that government intervention in telecom service prices is not aimed at limiting the marketing capacity of telecom companies.
Mr Phonexay said that telecom companies in Laos had been engaging in fierce competition to attract customers in recent years, often offering free sim cards, SMS and call time to customers, which has caused negative impacts on their business performance.
He also said that the government is also affected by the poor performance of telecom companies because they make less revenue and therefore pay less tax to the government.
There are currently four t elecom companies operating in Laos – Lao Telecom, Enterprise Telecom Laos (ETL), Star Telecom and Vimpel, which recently purchased a majority shareholding in Tigo from Millicom International Cellular.
The companies have fought fiercely to attain a greater market share in the country of 6.5 million people, which has allowed more Lao people, particularly those in remote areas, to access telecom services at affordable prices.
The number of mobile phone users has increased remarkably in recent years due to strong competition in the telecom sector. At present, there about 5.4 million mobile phone subscribers in the country, accounting for about 83 percent of the total population. Mobile phone networks reach 6,712 villages throughout the country.
Thaicom, which holds a 49 percent share of Lao Telecom, has announced it is considering getting out of the telecom sector in Laos and Cambodia due to major drops in revenue caused by strong competition in recent years.
August 12, 2011 Thailand's New Cabinet Holds Few Surprises Ron Corben | Bangkok
Thai Prime Minister Yingluck Shinawatra arrives for the first cabinet meeting at the Government House in Bangkok, Aug. 11, 2011. The new cabinet of Thai Prime Minister Yingluck Shinawatra has taken shape, dominated by members of her party, coalition partners and a few outsiders.
The 35-member cabinet is expected to soon try implementing populist economic and social policies that helped propel Prime Minister Yingluck Shinawatra to victory last month.
While most cabinet posts were allocated to her Pheu Thai Party or coalition partners, she selected some outsider appointments to key posts of finance and commerce.
Thitinan Pongsudhirak, a political scientist at Chulalongkorn University, said he had hoped for more experienced professionals in the cabinet.
“It falls below the initial expectations. Initial expectations were that they would appoint more outsiders, professionals, policy professionals, but they have ended up with just a few on the economic portfolios, the finance minister, the commerce minister, who doubles as the deputy prime minister," he said. "Beyond that selections were based on party factions and quotas.”
The new government's rise to power comes after a tumultuous period in Thai politics.
Former Prime Minister Thaksin Shinawatra, Ms. Yingluck's brother, was ousted in a 2006 coup because of conflict between his government and traditional elites in Thai society.
Ms. Yingluck's new defense minister is a former general who is viewed as nonconfrontational and is expected to work well with the military.
Economist Somphob Manarangsan welcomed the outsiders on the cabinet, who have financial experience, especially given the uncertain international economic outlook.
“From now on, Thailand is very stable and efficient macroeconomic policy even with the very volatile global financial markets from both the USA and European Union," says Somphob Manarangsan. "That means we have to prepare the country - particularly prepare the macroeconomic policy to be more ready to cope with the effect from the external factors."
Kasikorn Bank economists forecast the Thai economy will grow by five percent next year, fueled in part by government spending on populist programs such as increasing the minimum wage and price guarantees on rice. But Arporn Chewakrengkai, chief economist at the Government Pension Fund, says raising the minimum wage may prove a challenge.
“It is quite difficult to implement because as for the Bangkok the minimum wage is at 225 baht to even go to 300 baht a day, it’s still close to 40 percent higher. But for the other provinces [the wage is] 180 baht, something like that. How she [Yingluck] will bring up that wage up to 300 baht, this is the key challenge,” Arporn Chewakrengkai says.
While economists say higher wages could lead to inflation, the new deputy prime minister says addressing the increasing cost of living will be key for the government.
Reuters Surapong Towijakchaikul, Thailand's Foreign Affairs Minister.Most political observers say the new cabinet appeared to be filled with safe choices, but there is some controversy over the new foreign minister, Surapong Towichukchaikul, who is related to Ms. Yingluck and her brother, but has little experience in diplomacy.
Political analyst Thitinan says several officials in the Cabinet have close ties to the former prime minister.
“The foreign minister is not an appropriate person for the job. He is unknown as a foreign policy expert. He doesn’t have that expertise, but he does have a direct connection to Thaksin," he says. "The transport minister also has a direct connection to Thaksin. So the omen is not positive because this shows that Thaksin has a long shadow over this cabinet lineup.”
The former prime minister still lives in exile. Despite indications from officials in the ruling party that he and his political allies eventually could be pardoned, the new government has not moved on the issue.
Yingluck Shinawatra has appealed to the public and her political opponents to give her new administration time to show progress on its policies.
Look at the clip of Americans spirit in Times Square New York, so would you proud to be and live in USA ຈົ່ງພູມໃຈ ທີ່ໄດ້ປະກອບສ່ວນສ້າງຄວາມ ເປັນມະຫາອໍານາດ ກັບປະເທດທີ່ຍິ່ງໃຫ່ຍໃນໂລກ USA ຊົມຄວາມມີນໍ້າໃຈ ຂອງຄົນອະເມຣິກັນ ທີ່ ບໍ່ມີຊາຕໃດໃນໂລກເຮັດກັນ.
Ministry of Post, Telecom and Communication Office Head Mr Phonexay Phommapanya confirmed yesterday that the ministry has ordered telecom companies operating in Laos to stop offering special promotions such as free call credit, sim cards and messaging services in a bid to attract more customers.