CAT Telecom is talking with Hutchison-CAT about collaborating in branding and handset procurement for their broadband cellular services.

CAT chief financial officer Jirayuth Rungsrithong said last week that topping the agenda was CAT's desire to combine mobile-phone orders with Hutchison-CAT to boost their bargaining power vis-a-vis global suppliers.

The state agency also wants to utilise Hutchison-CAT's software to deliver wireless content to its own customers.

Hutchison-CAT, which is 75:25 owned by Hong Kong telecom giant Hutchison Telecom and CAT, markets the Code Division Multiple Access (CDMA) 2000 1-X cellular service in 25 provinces, using a network leased from BFKT, a wholly owned subsidiary of Hutchison Telecom.

CAT will provide its own CDMA cellular service in April on its own network spanning 51 provinces.

CAT also asked Hutchison-CAT to use the same logo for its CDMA service, though it said they would keep their own brands, Jirayuth said. Hutchison-CAT uses Hutch, while CAT will be branded CAT CDMA.

The state agency will spend Bt300 million to market its CDMA service with the goal of signing up 150,000 users this year. Initially it will focus on providing an air-card service, which gives notebook-computer users high-speed wireless access to the Internet.

Both are still discussing integrating their networks and amending their marketing contract to promote greater flexibility in their marketing campaigns. The contract is currently under examination by the Council of State for compliance with the state-private joint-investment law.

Hutchison-CAT, which made a splash on its debut several years ago, now has over 700,000 subscribers. CAT's share of revenue from the joint venture dropped to Bt2.05 billion last year from Bt2.19 billion the year before.

Usanee Mongkolporn

The Nation