He said Thai Mobile should seek funds from such a listing to invest in the roll-out of a third-generation (3G) broadband cellular network.

Thai Mobile is the only cellular operator in the Kingdom that owns a frequency in the 1900-megahertz spectrum, which is suitable for developing 3G service. As such, it can proceed immediately to develop 3G services, without waiting - like other mobile operators - for the National Telecommunications Commission (NTC) to complete licensing regulations for 3G technology and allocate frequencies.

Thai Mobile is a 58:42 joint venture between TOT and CAT Telecom. TOT is in the process of buying CAT's shares and taking full control of the company. CAT has agreed to sell its shares to TOT for Bt2.4 billion, provided TOT agrees to take over Thai Mobile's debts.

Since its debut several years ago, Thai Mobile has gained about 100,000 subscribers. It was granted the 1900MHz frequency by the now-defunct Frequency Allocation Panel, before the establishment of the NTC.

The minister said TOT should enable Thai Mobile to become a 3G leader. The country's major telecom operators are eager to obtain 3G licences so they can use the blazing speed of the new technology to provide wireless services like video-calling and interactive wireless games, thereby earning more revenues.

Sitthichai recently urged the NTC to hurry in its drafting of the 3G licensing regulations.

However, the commission remains uncertain about its powers to issue 3G licences in the absence of a National Broadcasting Commission (NBC). Telecom law stipulates that both telecommunications and broadcasting commissions jointly manage broadcasting and telecom frequencies and prescribe their use. But in 2005, the Central Administrative Court nullified the process of selecting 14 candidates for the NBC on the grounds that the process was unconstitutional, and the commission still does not exist.

The ITC minister also told TOT's board to seek new revenue sources for the state agency instead of continuing to depend on concession fees and access charges. The latter are levied against CAT Telecom's cellular concessionaires for connecting to different networks via TOT's facilities.

TOT has earned about Bt14 billion a year from access charges, but Total Access Communication and True Move, both of them CAT concessionaires, have made it clear they want to stop paying TOT's access charges and adopt only the interconnection charges introduced by the NTC.

The interconnection charge regime requires all telecom operators to share voice and data revenues between the networks involved, at rates fixed in accordance with bilateral agreements between the operators. Most such agreements are already in operation.

Sitthichai suggested TOT study the possibility of using its existing cable network to offer cable-TV services as one possible new source of income.

Telecom Reporters

The Nation