DTAC seeking supplier for 3G network

Total Access Communication (DTAC) wants to select a third-generation (3G) mobile broadband-network supplier soon, to launch the service by next year's second quarter.

"It's a matter of weeks, not months," CEO Tore Johnsen said yesterday.

DTAC is expected to pick only one out of three vendors vying for the 3G network contract: Nokia Siemens, Ericsson and Huawei Technologies. DTAC will roll out the network in Bangkok, Phuket and Chon Buri in the initial phase over its 850-megahertz spectrum.

ACL Securities said in a research note that DTAC was expected to install 800-900 3G base stations in Bangkok at a cost of about Bt1.5 billion.

The second-largest cellular operator has 18 million subscribers, while Advanced Info Service has more than 24 million and True Move more than 2 million.

DTAC recently revised its revenue-growth forecast to about 5 per cent from a previous estimate of 5- 10 per cent, in line with the slowing economy and continued political unrest.

Johnsen expressed hope that the economy would pick up next year.

Although many provinces have experienced flooding, presenting

 difficulties in launching marketing activities in the affected areas, DTAC has yet to feel any effect from such

natural disasters on its business, he said.

ACL Securities said DTAC was expected to post a normal third-quarter net profit of Bt2.01 billion, down 4.4 per cent quarter on quarter but surging 47 per cent year on year, due partially to expected flat sales and higher administrative expenses.

DTAC predicts a net gain of 675,000 subscribers this quarter, against a net loss of 776,000 in the second quarter, due partially to the floods in some provinces this month.

Johnsen denied rumours DTAC would pursue a reorganisation soon.

"For the time being, there is no reorganisation," he said.