Jasmine Submarine Telecommunications Co. Ltd.

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Jasmine Submarine Telecommunications Company Limited (JSTC) was awarded a 20-year BOT contract as a co-investor with the Telephone Organization of Thailand (TOT) to design, construct, and maintain the submarine optical fiber cable system in the Gulf of Thailand. The contract was awarded in 1991 and operations started in 1993. The project established a long-haul digital transmission system through optical fiber cable which provided linkages between Bangkok Metropolis via Chonburi and ten other main provinces along the south-eastern coast line of Thailand, including Hua Hin, Prachuap Khiri Khan, Chumporn, Ko Samui, Surat Thani, Pak Phanang, Songkhla, Pattani, Narathiwat and Tak Bai. The total length of the system was approximately 1,270 km. JSTC was a 100% owned subsidiary of Jasmine International which was controlled by the politically powerful Bodharamik family. The network linked the existing long distanace communications network between the Bangkok Metropolis and the Eastern Seaboard area and southern provinces of the country. It also provided back-up service to the network in case of land communications break-down due to damage caused by natural disasters such as typhoons. The cable design incorporated a total of 12 optical fiber cores, transmitting digital signals at a speed of 565 Mbps. which provided about 7,500 circuits per fiber pair. Initially TOT planned to use about 15,000 circuits and utilize only 6 fiber cores, with the others available for future network expansion. In July 1995, TOT approved JSTC to construct, operate and maintain the new submarine optical fiber system along the west coast of Thailand. JSTC was contracted to install a 500km fiber optic cable network along the west coast of Thailand under a 15 year, Bt940 million (US$37.3 million) contract with TOT, which had a 10% stake in the project. This optical fiber system provided linkage among Ranong, Tai Muang,Phuket,Kantang and Satun. The total length of this system was approximately 630 km. The new cable design incorporated 24 optical fiber cables and utilized the latest technology with data speed of 2.5 GB/S which could provide about 30,000 circuits per fiber pair. Initially, TOT used about 10,000 circuits. The total length of the terrestrial link was approximately 230 km. For international linkage, JSTC and Malaysia's Time Telecom had signed a memorandum of understanding to connect their respective terrestrial and submarine fiber optic systems for a Thailand-Malaysia linkage. Time Telecom owned and operated a land and submarine fiber optic network around the Malay peninsular. In 2000, Jasmine International signed a contract with 26 Thai and foreign creditors on a plan to restructure about US$275 million in debts incurred before 1997 Asian financial crisis. Despite the restructuring plan, Jasmine defaulted on its repayments in February 2002. By 2003, the company was pushing through the bankruptcy courts a new debt-restructuring plan that called for its largest Thai creditor, Bangkok Bank, to be repaid in full, while the remaining financial creditors - mostly foreign banks with smaller exposure - would receive 17 percent of outstanding debts. Despite the parent company's financial difficulties, JSTC's network continued to provide TOT with capacity to support and backup its traffic volume in south Thailand and with Malaysia in 2003. By 2004, JSTC was making profits again and focused its activities mainly on broadband services. In 2006, JSTC invested BT325 million ($282,000) in TT&T.