Due to the changes in the telecommunications business environment transitioning from the concession era to the license-based system that has supported free trade since 2006, business competition intensified. This being the case, it affected mobile phone services, data communication services, and Internet services, all of which are regarded as CAT’s main business. As a result, these services were met with the plummeting market share and price. In addition, the role, which each of the telecommunications state-owned enterprises played in making investments and taking ownership of a great deal of assets in telecommunications infrastructure both domestically and internationally, caused its operating costs to go higher than those of other providers. These factors resulted in the company’s declining revenues and its inability to fund itself following the expiration of the concession contract. The fact that the company might eventually face deficits classifies CAT in a group of companies whose businesses need to be reinvigorated urgently, so as to sustainably strengthen its competitive edge and survivability in the future. The State Enterprise Policy Office (SEPO) has reached a consensus that allows CAT and TOT to restructuretheirorganizationstosolveexistingproblemsbyestablishingcompaniesinwhichthegovernment holds a 100 percent stake. Those two companies are as follows: 1. NationalBroadbandNetworkCompanyLimited(NBN)conductsbusinessprovidingnationalBroadband network wholesale services to small-scale operators. The company takes care of CAT’s assets, fiber optic core networks, and last mile fiber optic networks (Copper Wire Lines), all of which are known as the “Access Network” of CAT and TOT. It also monitors the national Broadband network assets of the Ministry of Digital Economy and Society (MDE), valued at 15 billion Baht, in order to expand the capacity of nationwide service coverage and reduce investment redundancy in accordance with the government’s policy. 2. Neutral Gateway & Data Center Company Limited (NGDC) conducts business that provides international network wholesale services, renting out these international network circuits to customers both domestically and internationally. It monitors both international submarine cable systems and ground network systems of CAT and TOT. In addition, it also shepherds the Ministry of Digital Economy and Society’s international network assets estimated at 5 billion Baht for purposes of increasing the potentialofthenationandofthebusinessesthatprovideservicesincludingCloudComputing,Colocation, Internet Data Center, all forms and types of IT Security. It also aims to develop functional businesses of the similar nature. Work Process Development and Structural Improvement 85 Sustainable Development Report 2017 CAT Telecom Public Company Limited