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Published on January 26, 2008

TOT spokesperson Natee Sukonrat said yesterday that both companies would share network strength and jointly develop new services, but further details of the collaboration would be discussed later.

The announcement surprised executives at True. One, who asked for anonymity, said TOT made the announcement even though both parties had not yet signed the MoU.

"[Also] next week most [True] executives will be on overseas trips," he said.

TOT on Monday signed a similar MoU with leading cellular-service provider Advanced Info Service (AIS) to jointly develop fixed line-mobile convergent services. TOT owns the concessions of both True and AIS.

True's businesses include cellular services, broadband Internet and pay-TV.

State telecom agencies and their major private telecom concessionaires are currently forging closer ties to explore new services, especially 3G wireless broadband services.

TOT has been negotiating the MoU with True for two months. One possible collaboration is that both firms could use their telecom networks to back up each other's network operations, Natee said.

But this does not mean that they will stop competing in key areas such as broadband Internet services, he added.

TOT, which currently has 400,000 broadband Internet customers, has targeted broadband business as its new revenue source. True dominates the broadband Internet market with more than 600,000 customers.

Natee denied the report that TOT would withdraw all the legal cases it has filed against True once the MoU is signed.

Like TOT, CAT Telecom has also sought collaboration with its private telecom concessionaires. It has discussed with Total Access Communication (DTAC) a possible partnership to offer 3G services on DTAC's 850MHz spectrum.

In a separate matter, Natee said that TOT would take a week to consider in more detail CAT's proposal to sell its 42-per-cent stake in Thai Mobile, worth Bt2.4 billion, to TOT.

CAT's board has already approved the state agency's plan to divest its shares in Thai Mobile to TOT, the other partner in the joint-venture cellular operator.

CAT owns 42 per cent of Thai Mobile, and TOT the rest. CAT wants to focus on its own Code Division Multiple Access (CDMA) 2000 1-x cellular service.

TOT needs to take full control of Thai Mobile, which has the 1900MHz spectrum - the global standard platform for offering 3G services.

Natee said the TOT board also approved a budget of Bt300,000 to test the provision of broadband Internet access via power lines. It needs to explore new technology to complement its conventional broadband business.

Sirivish Toomgum

The Nation