TT&T Plc, the provincial fixed-line telephone provider, says it needs to temporarily suspend its 50-billion-baht third-generation (3G) investment plan in line with the industry-wide movement due to the global financial crisis.

The country's two largest mobile operators, AIS and DTAC, recently scaled back full-scale 3G network investments in light of the financial crisis.

Prasitchai Kritsanayunyong, executive vice-president of TT&T, said the company would have to indefinitely postpone its 3G and other new business projects that required high investments.

"Finding and obtaining funding sources now would be very difficult in the middle of the global financial crisis," he said.

TT&T, however, is moving forward with existing initial investment plans in fixed-line network maintenance with a combined value of around 800 million baht.

Mr Prasitchai said the company would still apply for a new 3G licence once the National Telecommunications Commission (NTC) issues them. It would continue to seek prospective foreign partners, likely in Asia.

Korawut Chiwaprecha, vice-president for the finance and budget department, said TT&T had a policy to use cash from business operations to fund new investment projects this year, eliminating the need for bank loans.

TT&T had sharply scaled down its investment plan this year from two billion baht to between 700 million and 800 million baht, after it filed a petition with the Central Bankruptcy Court in April to enter a business rehabilitation plan for debt restructuring.

The move is to comply with the rehabilitation process in which creditors are unwilling to let TT&T spend more.

TT&T owes 19 billion baht to more than 30 creditors. Foreign-currency debt totals US$250 million and the rest is in baht. Repayments are due every year at an average of two billion baht until 2018.

Mr Korawut said the company was waiting for the court to allow it to enter a rehabilitation plan as its creditors did not approve the company's earlier debt restructuring.

TT&T can now make repayments of 500 million to one billion baht a year, while its creditors want it to pay two billion baht.

Under the planned rehabilitation, TT&T would propose a combination of three options: rescheduling debts, swapping debt for equity and cutting interest costs.

TT&T expects to earn eight billion baht in revenue this year. It was likely to face loss for another year due to continuing decline in average revenue per fixed-line user and high concession costs, said Mr Korawut.