ais to invest bt6 billion

Advanced Info Service (AIS) will increase its nationwide 3G base-stations to over 1,900 from the planned 400, at a total cost of Bt6 billion.

"We want to show that we're serious about service development," said AIS chief marketing officer Sanchai Tiewprasertkul, adding that AIS would debut the 3G service in Bangkok at the end of this year.

AIS recently applied for permission from the National Telecommunications Commission (NTC) to install 1,500 additional 3G base stations, getting the NTC's nod to install 400 base stations in the last two weeks. The cost of rolling out 1,900 sites is Bt6 billion.

AIS introduced the 3G post-paid

service at 30 sites in Chiang Mai in

May under the 3GSM Advance brand, using its existing constrained 900MHz spectrum.

"We target at least 20,000 and at most 50,000 3G subscribers nationwide by the end of this year. The rollout of 1,900 bases will reach break-even point once we get 300,000 users out of a base-station capacity to serve500,000," Sanchai said.

The rollout of 1,900 sites in 25 main provinces will be completed within 18 months. It will be completed this year in 10 provinces: Chiang Mai, Bangkok, Chon Buri, Khon Kaen, Korat, Udon Thani, Ubon Ratchathani, Hat Yai, Phuket and Prachuap Khiri Khan.

AIS's main competitor, Total Access Communication (DTAC), plans to install 1,600 3G base stations in Phuket, Bangkok, and Chon Buri at a cost of Bt5 billion. DTAC will launch the service in the 850MHz spectrum. True Move also plans to build over 600 3G base stations nationwide.

"We can't let our guard fall. The winner in the 3G game is the one that can provide the best network coverage," Sanchai said.

Sanchai is not concerned that DTAC has greater spectrum bandwidth for the

3G service. Once the NTC awards the 2.1GHz spectrum licences, AIS will stake its claim and deploy the spectrum to offer 3G service complementing its service on 900MHz.

"Once we get the licence, we'll relocate the 900MHz 3G network from cities to remote areas and roll out 2.1GHz 3G network in the cities," he explained.

Technically the 900MHz spectrum is more cost efficient for cellular service in the provinces than the 2.1GHz spectrum.

AIS's marketing budget for the 3G service is Bt40 million. Next year it will launch 3G service for the prepaid market using the 1-2-Call 3G brand.

AIS learnt a lot of lessons from the 3G launch in Chiang Mai, where people crave mobile broadband Internet connection, not cool services like video calling.

The 3G technology enables telecom operators to provide very fast data downloading and Internet connectivity.