Telecom operators make plans to develop mobile broadband services

A source at TOT said yesterday that TOT had already worked out three optional models to develop the 3G mobile service, including the division of 15 MHz of bandwidth in the 1900 MHz band into three blocks of 5 MHz each and awarding them to operators.

The second is the division of the spectrum into 10 MHz for its own service development and granting the remaining 5 MHz to only one telecom operator. The last option is investing in the 3G network on its own and leasing it to interested |telecom operators.

Advanced Info Service (AIS) has already asked TOT to allocate 5 MHz of the 1900 MHz spectrum to it and recently informed Information and Communications Technology Minister Mun Patanotai of its interest in developing a 3G service with TOT.

The minister had called on TOT to consider the AIS request but the state agency's management said it would consider the case once TOT receives Cabinet approval to solely own the 1900 MHz spectrum. It seems AIS must wait further as the Cabinet has yet to grant such approval to TOT. The Cabinet was expected to consider the approval yesterday.

TOT is in the process of taking full control of Thai Mobile, its cellular joint venture with CAT Telecom. Thai Mobile owns the 1900 MHz spectrum, of which the 2.1 GHz band is the standard global platform for 3G services.

AIS president Wichian Mektrakarn said that AIS would do its best to match its competitors in the 3G race.

Due to the constraints of its 900 MHz spectrum, AIS needs the 1900 MHz spectrum to further expand 3G services after the service debut on its 900 MHz spectrum in Chiang Mai in May. AIS plans to roll out 400 3G base stations using its 900 MHz spectrum in greater Bangkok for Bt1.29 billion.

If it can secure part of the 1900 MHz spectrum, it will invest in the 3G network and transfer the network to its concession owner TOT in line with the build-transfer-operate concession.

Sigve Brekke, chief executive of Total Access Communication (DTAC), said on Monday that DTAC would select Nokia, Ericsson or Huawei Technologies to be its 3G network supplier within five weeks. After that it will roll out the network in Bangkok in the first quarter next year, followed by Phuket and Chon Buri.

The total cost of building the 3G network nationwide is Bt5 billion.

He said that DTAC would offer high-quality 3G services to users who want wireless broadband Internet and the service price could compete with the fixed-line broadband services. The service will be launched on its 850 MHz spectrum, totalling 10 MHz in bandwidth, which he claims can cater to 10 million users.

DTAC expects substantial 3G revenue in 2010, he added.

True Move's chief executive Supachai Chearavanont said yesterday in his analysts' meeting that True Move would spend Bt5 billion of its cash flow on introducing the 3G network during 2008 to 2010.

A CAT source said that CAT and True agreed that True Move would invest in the 3G network and transfer it to CAT in line with the build-transfer-operate concession. True Move will launch the service on 5 MHz of bandwidth in the 800 MHz spectrum to be granted by CAT on a 3G service co-branding basis.

Analysts believe that True Move is in need of cash-rich strategic partners to finance its 3G project. Its parent, True Corp, is saddled with debt of Bt81 billion, of which Bt8.8 billion will be due next year and another Bt13 billion in 2010. The company has the capacity to repay debt of only Bt4 billion per year.

Supachai still insisted that the company does not need strategic partners but what he calls "financial partners" for the mission.

While racing to launch 3G services on their various bands, some private cellular operators are waiting for the National Telecommunications Commission (NTC) to grant licences to operate 3G services on the 2.1 GHz spectrum.

The NTC is expected to finish the 3G licensing terms this year.