Fitch: No change for Thailand phone operators

Fitch Ratings said in a special report that it does not anticipate any substantial impact on the credit quality of Thailand's mobile phone operators from the upcoming 3G license spectrum auction in the 2.1 gigahertz band.

Fitch rates Advanced Info Service plc at BBB+ with a stable view and Total Access Communication plc at BBB- with stable view.

Although the expected high upfront license fee and investment required to offer 3G services could result in an increase in net debt and financial leverage during the next two to three years, these companies' solid cash flow generation and strong financial positions should help them withstand potential additional costs, the agency said.

The agency also noted that despite the high capital expenditure - the key benefit of the 3G license is lower regulatory costs, which should boost the operators' profit margin over the medium-to-long-term, Moody's said.

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