TOT (Thailand) - Corporate Status Change and The Aftermath of The 2006 Coup

Corporate Status Change and The Aftermath of The 2006 Coup

Under the deposed government of Thaksin Shinawatra (2001–2006), the TOT was made into a corporation and plans were under way to privatise a portion of the state enterprise through an IPO in the Stock Exchange of Thailand. These plans were cancelled after the Thaksin-government was overthrown by a coup in 19 September 2006. Soon after the coup, the junta of General Surayud Chulanont announced plans to merge TOT with rival state telecom enterprise CAT Telecom (formerly the Communications Authority of Thailand).

The junta also appointed junta Assistant Secretary-General General Saprang Kalayanamitr to become the new Chairman of the Board of Directors of TOT. General Saprang's first move as TOT Chairman was to hand-pick three Army colonels and controversial Thaksin-critic Vuthiphong Priebjrivat to sit on the state enterprise's Board of Directors.

The junta also cancelled the Thaksin government's telecom excise tax policy. The Thaksin government imposed an excise tax on privately offered fixed and cellular services, and then allowed telecom companies to deduct the amount they paid in excise tax from concession fees they had to pay to state concession owners TOT and CAT Telecom. The total amount paid by the private telecom firms did not change. The Surayud government's excise tax cancellation meant that TOT and CAT Telecom would receive their full concession payments. However, TOT and CAT were then forced to increase their dividends to the Ministry of Finance to account for their increased income.