What's new in business news: September 6, 2013

DTAC plans 4G for Thailand, special court to handle tourist problems & consumer confidence and spending still low.

MOBILE PHONES 

DTAC plans 4G for Thailand

Telenor of Norway, the majority shareholder of  DTAC (Total Access Communication) is planning to invest in fourth-generation mobile broadband service in Thailand after its local operating unit posted "unexpectedly high" data revenue growth. Thailand will be the company's fifth country with 4G after Norway, Sweden, Malaysia and Hungary.

Telenor already provides mobile services in 13 countries, including six in Asia, serving 135 million mobile users.  Thailand  contributes the largest proportion of revenue in Asia via DTAC and DTAC is Thailand's second-largest mobile operator.

The take-up of 3G service in Thailand is surprisingly quick because of heavy sales of smartphones and tablets. 3G and 4G can increase internet penetration in big cities as well as rural areas. Telenor also aims to roll out its 2G and 3G network in Myanmar by mid-2014. Only 7% of Myanmar's 60 million people have mobile phones.

[Read full story here ]

TOURISM 

Special law court to handle tourist problems launched

Thailand's first law court to specifically handle tourist complaints opened in Pattaya on Thursday. 

Tourism is a key sector driving the economy but despite Thailand's popularity, there are frequent complaints about scams from boat rentals to tuk-tuks, taxis and jet skis in many tourist locations.

After Pattaya, Phuket will be the next location for a court, after which similar ones will be set up in Chiang Mai, Koh Samui in Surat Thani, Bangkok and possibly Suvarnabhumi airport.

The court  will operate like a one-stop service for tourists to seek justice for unfair practices from scams, theft, conflicts and accidents.

Interpreters will be at the office to receive complaints from tourists around the clock and cases could be taken up as early as the day after an incident with a standard case wrapped up in one day. 

The first test case for the court is the speed boat accident that happened in Pattaya on Aug 28.

The family members of the two Chinese tourists killed in the accident lodged a complaint for compensation. The accident and another recent one off Pattaya in which two tourists from South Korea lost their legs had a serious impact on the country.

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ECONOMY

Consumers still wary of spending

Thai consumer confidence hit a nine-month low in August as people became increasingly worried about the economic slowdown and political uncertainties. Some of issues consumers were worried about include the delay in government-led infrastructure projects, political uncertainties and falling agricultural product prices, particularly rubber and palm oil, which recently led to street protests around the country. The slow global economic recovery is also a concern. 

A consumer confidence index score of less than 100 points indicates pessimism among consumers, while a reading above 100 means consumers expect conditions will improve. A survey by the University of the Thai Chamber of Commerce (UTCC) reported that the consumer confidence index dipped for the fifth consecutive month in August to 79.3 points. It was 80.3 points in July, 81.6 in June, 82.5 in May, 83.7 in April, 84.8 in March and 84 in February.

The country's economic slowdown and weakened consumption has resulted in lower spending on vehicles and durable goods such as furniture and electrical appliances. The export growth forecast has also dropped to 4% from the 7.5% projected in April on the back of slower demand from China and other Asian economies.

[Read full story here ]