Interlink Telecom Plc (ITEL) is gearing towards the next phase of its growth, with the aim of generating annual revenue of 5 billion baht within 3-5 years by offering more value-added services to customers, says chief executive Nuttanai Anuntarumporn.
ITEL operates in three core business areas: a telecom network rental service for fibre-optics (data communication services); installation services for telecom networks; and data centre management. The group posted total annual revenue of more than 3.4 billion baht last year.
Mr Nuttanai, 36, began his journey at ITEL in 2012 at the age of 24. Through dedication and perseverance, he became the youngest executive (aged 29) to list a business on the Market for Alternative Investment (MAI) in 2016.
Mr Nuttanai's path continued on an upward trajectory when he led ITEL to list on the Stock Exchange of Thailand (SET) in 2021.
TOWARDS A NEW S-CURVE
He said the company wants to generate 5 billion baht in annual revenue in 3-5 years. The telecom network service business enables ITEL to have recurring and long-term revenue, but it remains a highly competitive domain.
"As we started from zero, every step takes time. We laid the foundation, gaining trust from our customers by showing them our commitment and ability to execute," Mr Nuttanai said.
"Now we're in the next phase of growth by scaling from 3 billion to 5 billion baht in revenue. We need to retain existing customers and add new revenue streams, exploring novel customer bases. This means we need to grow horizontally and vertically."
To achieve the growth target, ITEL will seek new S-curve opportunities by offering more value-added services and solutions to around 800 existing customers, he said. Among these offerings is a big data analytics tool for clients to gain customer insights, another tool to support business decision-making, and a social listening analytics tool.
The company also plans to offer "tele-everything" solutions, such as telehealth and tele-education systems.
ITEL is eager to provide a smart closed-circuit TV system that can provide a safe environment and is intelligent enough to understand customer behaviour, such as pedestrian traffic, said Mr Nuttanai.
In the field of cybersecurity, ITEL has partners such as Pentera, a penetration testing company that develops and provides an automated security validation platform to reduce cybersecurity risks.
"We'll offer a security-as-a-service platform," he said.
Drone and anti-drone solutions are also expected to make up part of ITEL's new S-curve service, providing drone delivery services in specific areas, while the anti-drone service disconnects drone signals to maintain security and privacy, said Mr Nuttanai.
PARTNERSHIP IS KEY
"We've established partnerships with experts in specific areas, and we'll bring these partners to meet customers and explore opportunities for revenue sharing or joint ventures," he said.
"While we may not possess the ability to do everything, we carefully select partners who excel in their respective fields to provide the best service to our customers."
For example, one partner is Coraline Co, which specialises in big data analytics. The two firms have combined their expertise to deliver optimised solutions to customers.
"By continuing to deliver successful outcomes with a justified investment, our partners and customers will help us capture opportunities," said Mr Nuttanai.
FOCUSING ON M&A
"After reaching the revenue target of 5 billion baht, we'll grow on an inorganic basis through mergers and acquisitions (M&A) to reach 10 billion baht of revenue in the long term," he said.
On March 3 last year, ITEL acquired Blue Solutions Co, which provides IT products and services, aiming to expand the company's sustainable growth.
While ITEL offers telecom services outside of office buildings, Blue Solutions offers technology solutions for use inside office buildings.
In the first quarter of 2023, Blue Solutions recorded total revenue of 556 million baht and 57.8 million baht in net profit, attributable to the parent.
ITEL plans to list Blue Solutions on the Thai bourse in the fourth quarter this year, when the firm is expected to post revenue of 700 million baht.
Mr Nuttanai said if Blue Solutions is successfully listed, it would become the fastest company to go public after being acquired, which would burnish the reputation of ITEL as it looks to hold M&A talks with companies in the future.
He said ITEL wants to explore new businesses that can leverage its digital infrastructure. The company wants to ensure it has the capabilities to thrive in a new business before taking the plunge, said Mr Nuttanai.
"We are not simply going to hop on a bandwagon, as it could be heading towards an abyss," he said.
Mr Nuttanai said he grew up within a family business environment where his parents, who had salaried professional work, took the bold step of starting their own business.
Through their hard work and dedication, they successfully expanded Interlink Communication Public Co and eventually listed it on the SET, he said.
Mr Nuttanai said his father gave him a loan of 300 million baht to kick-start ITEL. He also secured a bank loan of 700 million baht to develop ITEL's businesses.
Listing on the stock market means ITEL established a strong reputation and credibility among customers, able to match listed competitors, said Mr Nuttanai.
INGREDIENT LIST
"I am not a quitter. I will always find solutions and fight until I succeed," he said.
"If others can do it, we can make it too. I always challenge myself and my team."
Mr Nuttanai said the key factors that allowed ITEL to successfully list on the MAI were the strong determination and hardworking attitude of his team.
He said growing up in a family of four female siblings and no brothers influenced him, especially in terms of the female characteristic of having a meticulous approach. Yet Mr Nuttanai also credited his willingness to take risks and his engineering background for contributing to his ability to make well-rounded decisions by examining the situation from all angles.
During times of uncertainty, it is crucial for management to be patient and avoid taking the wrong path, he said. One example is always being willing to take on projects that are risky or offer a low level of profit. He said taking the wrong path could have a negative impact on ITEL's 734 employees.
When ITEL was in the early stages of business development, it often took on every project to prove its capabilities to customers, said Mr Nuttanai.
However, as the company grew and matured, its main priority became to ensure sustainable growth, he said.
"In situations where opportunities are scarce or uncertain, we must be patient and wait for the right moment to seize them," said Mr Nuttanai.
"We've focused on sustainable growth. In the telecom network service business, we still have opportunities to find the right timing to approach new customers."
Regarding Etix Itel Bangkok Co, ITEL's data centre business, he said there is still room for growth.
Etix Itel Bangkok operates ETIX Bangkok#1 data centre. ITEL owns 33.3% of Etix Itel Bangkok, a joint venture with Etix Everywhere, an Australia-based data centre provider.
In the data centre business, Mr Nuttanai said the company needs to access, understand and execute what customers need.
"As the owner, I personally engage in direct conversations with customers and provide tailored offers that cater to their specific requirements," he said.
Mr Nuttanai said the company plans to offer an alternative green energy solution to upcoming data centre providers.
REGIONAL HUB
He said he recognises the potential Thailand offers as a regional digital hub, considering the emergence of hyperscale data centres, improved connectivity, and the country's geographical advantages, especially as Singapore's data centre market has reached maturity.
In addition to rising domestic digital network usage, digital infrastructure can complement physical infrastructure, particularly in logistics and transport, which are crucial for the country's economy, said Mr Nuttanai.
He advised the incoming government to optimise Thailand's existing technological resources. For example, the government should make it compulsory for people to use public online services in order to fully leverage the online infrastructure system.
The government should also embrace artificial intelligence to automate repetitive tasks performed by state officials, said Mr Nuttanai.
"Instead of making new investments in everything, maximising the use of existing resources will help reduce the duplication of budgets," he said.
