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Published on January 25, 2008

New subsidiary Wide Broadband alone will spend more than Bt1 billion on a fixed-line network to offer broadband services to corporate and household customers across the country, DTAC chief executive Sigve Brekke said yesterday.

Wide Broadband is waiting for a business licence from the National Telecom-munications Commission (NTC), after which its service will be up and running within a year. Its fixed-line operation will be backed by DTAC's upcoming mobile broadband network.

DTAC believes there is a high demand for broadband access.

The company's pitch for a share of the broadband market pits it against dominant players True and TT&T.

DTAC is also acquiring shares in content and Internet-service providers, to support its move into the broadband arena. It recently bought 75 per cent of Thai online-payment service provider PaySbuy for Bt39 million and plans to increase its stake to 98 per cent soon.

DTAC is also in talks with mobile solutions provider Createch on a similar deal.

"We'll acquire shares in three more small firms this year, one each in the music, Internet and Wi-Fi businesses," Brekke added.

DTAC has also recruited information-technology experts from Telenor of Norway, its telecom strategic partner, to back its IT operation.

Brekke said DTAC had enough cash flow for the new business investment.

As part of its broadband focus, DTAC tested High-Speed Downlink Packet Access (HSDPA), a souped-up third-generation technology, on its 850-megahertz spectrum from last September to November at Siam Square and Vibhavadi-Rangsit Road in Bangkok and in Maha Sarakham province.

The test was conducted together with concession-owner CAT Telecom and telecom-equipment supplier Ericsson. The system was demonstrated to the press yesterday by providing long-distance teaching from Maha Sarakham University to Ban Paeng School in Maha Sarakham province.

"We want to provide Thais more Internet access through both notebook computers and mobile phones. At the same time, we also want to increase the broadband-Internet penetration rate," Brekke said.

Brekke said the cost of developing the HSDPA service on the 850MHz spectrum was about Bt3 million per base station but that DTAC had yet to decide whether to offer the service on all 1,600 of its 850MHz-spectrum base stations in the Kingdom.

CAT chief financial officer Jirayuth Rungsrithong said the company was in talks with DTAC on a possible tie-up to develop the HSDPA service commercially.

One option is to set up a joint venture to apply for an NTC licence to offer the service, he said.

Jirayuth added that CAT would soon notify the NTC, its licence-owner, of its plan to develop a commercial HSDPA service on the 850MHz spectrum. CAT owns the spectrum and provides it to DTAC to offer cellular services.

Usanee Mongkolporn

The Nation