Cabinet backs TOT's 3g business plan

TOT will now submit the plan for the approval of the National Economic and Social Development Board and the Public Debt Management Office.

TOT will assign its cellular operator joint venture ACT Mobile to invest in the 3G network rollout worth Bt29 billion during 2009-2011. The project targets breaking even within seven years.

The network is to be leased to telecom operators because TOT wanted to be the network provider.

ACT Mobile operates the conventional cellular network of Thai Mobile, which provides a cellular service on the 1900 MHz spectrum, the global standard platform for 3G mobile broadband services.

In the first phase, TOT will upgrade 500 existing ACT base sta¬tions in Bangkok and major provinces for 3G technology to enable a launch early next year. In the second phase, TOT will install 5,220 new 3G base stations across the country.

TOT targets at least 350,000 3G subscribers next year before num¬bers rise to 4 million on the network in 2013.

Many private cellular operators, including Advanced Info Service, are interested in joining with TOT to develop the 3G service.

TOT is in the process of acquiring all of the 40percent and 42percent shareholdings now held by CAT Telecom in ACT and Thai Mobile respectively, worth a combined Bt2.4 billion, with its plan to take over both companies. The share payment will be complete within five years. CAT will also transfer part of its ownership of the 1900 MHz spectrum in Thai Mobile to TOT.

The now defunct frequency allocation committee decided the spectrum would be jointly owned by CAT and TOT in 2000 before both assigned the spectrum to Thai Mobile to provide the cellular service.

The National Telecommunications Commission is expected to finish drawing up the regulations for the granting of licences to operate on the 2.1 GHz spectrum bands to offer 3G service at the end of this year.