Wichian Mektrakarn, president of the country's leading cellular operator Advanced Info Service Plc (AIS), said 128 telecom operators worldwide were investing in 3G networks, the operating costs of which were about US$55 (Bt2,063) per subscriber compared to $50 per subscriber on 2G networks.

The 3G (third-generation) platform enables data services such as video calls to its subscribers.

For telecom operators in the Kingdom, the 3G network will not only serve consumer demands for a faster data services but is also a means to reduce the burden of concession fees, said Wichian at a seminar on 3G held by Thai-language publication Telecom Journal late last week.

Once granted licences, cellular operators are likely to transfer existing subscribers to 3G networks in order to alleviate the strain on existing networks. Also, the concession fees on 3G networks should be around one-third less than on 2G networks.

Wichian predicts that the number of 3G-enabled mobile phones in Thailand will reach three million next year, a jump from the current 200,000.

Though the 3G network has yet to become available here, mobile-phone makers have already flooded the market with 3G phones.

Thailand has over 30 million mobile-phone users, of whom only 10 per cent subscribe to entertainment data services and just 5 per cent to other data services.

AIS, which has over 17.5 million subscribers, expects the number of mobile-phone subscribers in Thailand to grow by 15 million in the next five years.

Thana Thienachariya, chief commercial officer of Total Access Communication (DTAC), said that while he did not believe there would be a huge demand for 3G services, cellular operators would still seek licences to operate on the spectrum so that they could transfer subscribers and alleviate the strain on existing networks.

"Mobile-phone users may be eager to try the 3G-based video-call service once it is available, but whether the service is a buzz depends on many factors, including the service fee," he said.

Thana added that cellular operators preparing for 3G were also driven by image as investing in the new network would make the companies more attractive in the eyes of investors.

"Initially, investing in the 3G network can boost your image, but only for a short period," he said.

DTAC has also shown interest in the 3G network.

It is still uncertain when cellular operators will be able to operate on 3G. The country has yet to select new members for the National Broadcasting Commission (NBC) after the Central Administrative Court last November nullified the selection process, even though the Senate had chosen an NBC panel.

Frequency-allocation laws mandate the National Telecommunications Commission and the NBC to jointly develop a national frequency table, manage the telecom and broadcasting spectrums and prescribe spectrum regulations.

The NTC has already consulted the Council of State on whether it can create a national spectrum table and award new spectrum licences without the NBC's input. The state agency suggested that the NTC could do so to a limited extent.

Telecom scholar Anupab Tiralap is suspicious as to whether it is a good idea for the NTC to award 3G spectrum licences bypassing the NBC.

"If the NTC grants the 3G licence to one company ... then one day someone sues it saying it had no right to do so and the NTC happens to lose the case, the question is what will happen to the 3G network that was created by the company that was given the licence," he said.

Anupab added that the cost of rolling out the 3G network in Thailand was expected to be over Bt100 billion, which would affect the country's foreign-exchange and trade balance.

"The NTC should take these negative factors into account," he said.

Usanee Mongkolporn

The Nation