SingTel appointment signals enhanced role

Advanced Info Service (AIS) has announced the appointment of Hui Weng Cheong in the newly reinstated position of president, in a move viewed by telecom industry veterans as a bid by Singapore Telecommunication (SingTel) to take a greater role in the Thai company.

Some see the new position, filled by a representative of SingTel, as a signal that Southeast Asia's biggest telecom group by revenue wants to speed up AIS's progress in the industry.

Somchai Lertsuthivong remains as chief executive of the country's biggest mobile operator.

Mr Hui will also retain his current position of chief operating officer, reporting directing to Mr Somchai.

Mr Somchai said the appointment was part of AIS's restructuring programme, in a drive to enhance its business competitiveness to serve digital economies.

The appointment took effect on Oct 1.

Mr Hui will be responsible for marketing, customer service, network development and development of new applications and solutions. He joined AIS in 2006 and has been working with the company for 10 years.

The position of president of AIS was established for the first time when Yingluck Shinawatra, the youngest sister of ousted prime minister Thaksin, took the helm of the family's telecom business.

Wichian Mektrakarn succeeded Ms Yingluck after she resigned from the post after Mr Thaksin sold out the telecom business to Temasek Holdings.

Mr Wichian served as president for around one year, but the position was dissolved and replaced with a chief executive post instead.

This is the first time AIS will have both a chief executive and a president simultaneously.

A high-ranking source from InTouch Holdings, the parent firm of AIS, said the appointment is seen as SingTel's attempt to have more control its over its operations.

The source's comment was based on SingTel's recent announcement to spend US$1.8 billion to buy a stake in Thailand's InTouch and increase its share of India's Bharti, boosting its access to fast-growing mobile markets.

The source also said AIS is on the verge of reshuffling its board of directors. AIS board chairman Vithit Leenutapong resigned from the post last month.

SingTel is likely to appoint its own representatives to these vacated positions

SingTel acquired 21% of InTouch and an additional 7.39% in Bharti Telecom from Temasek Holdings. Temasek is SingTel's parent company.

SingTel now holds a 32% stake in AIS, an increase from its previous share of 24%.

InTouch holds a 40.45% stake in AIS, and has said earlier it expects no change in the fundamentals or the direction of the group after a restructuring its corporate ownership.

More directors on InTouch's board are expected to resign soon, including Boon Swan Foo, a representative of Temasek, in the wake of the restructuring of AIS ownership.

Mr Boon played an influential role in InTouch's decision-making process.

Source:
courtesy of BANGKOK POST

by SRISAMORN PHOOSUPHANUSORN AND KOMSAN TORTERMVASANA

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