CAT launching CDMA cellular next month

CAT Telecom will formally launch its CDMA-based cellular service in 51 provinces by the middle of next month with the goal of attracting 100,000 users this year, a source said last week.

The state enterprise has budgeted Bt100 million to market the service and about Bt300 million for network expansion, the CAT source said, adding that the capital expenditure budget still needs board approval.

Tanwadee Wongterarit, a senior vice president of CAT, said about Bt30 million has already been spent on advertising since February.

The campaign will not go aggressively after customers of other mobile operators, she said.

CAT's network covers 51 provinces, while its joint venture Hutchison-CAT Wireless Multimedia serves the 25 other provinces.

They are in talks on possibly marketing their CDMA networks together nationwide.

CAT will focus on high-speed data service.

Some CAT executives have floated the idea of jettisoning the CDMA technology in favour of HSPA 3G, but board chairman Satit Limpongpan said last week that CAT should keep the CDMA network.

CAT has yet to finalise the fine it will impose on Chinese vendor Huawei Technologies for alleged late delivery of the second phase of its network rollout. It decided to fine Huawei last August.

Their contract states the penalty at Bt90 million a day, which means Huawei could face up to a Bt30-billion charge.

Huawei has claimed the problem stemmed from different interpretations of the contract, which required Huawei to deliver the second phase by January 2007, while the accompanying high-speed software would be completely installed the following year.

But CAT reads the contract to mean the entire network including software had to be delivered in January 2007. Huawei eventually installed the required software for CAT.

Last December, Huawei requested the Central Administrative Court to order CAT to pay it the second instalment due on February 2007 of 25 per cent of the total CDMA project value of Bt7.2 billion.