Project may face further delay: TOT

TOT has expressed concern that the new government might review its 3G mobile broadband development project, which could further delay the project.

A source at TOT said the new government might step in to review the project given the huge required investment of Bt29 billion.

Democrat Party and Phue Thai Party are competing fiercely to form the new government.

The source said TOT would draw up the terms of reference for the 3G network rollout after a complete study of the appropriate technology.

TOT has already postponed the scheduled launch of the service in Bangkok to the middle of next year from the next quarter.

TOT's spokesman Rathian Srimongkol said early this week that the management has yet to report the progress of the project to the board. Lately the state agency revealed that it was forming a new business unit to run the project.

In August, the Cabinet approved TOT's plan to have its network operator, ACT Mobile, roll out the 3G network nationwide from 2009-11 at a cost of Bt29 billion. TOT expects the project to break even within seven years.

Of that amount, TOT will contribute Bt2 billion, while the rest will come from loans secured on a government-to-government basis. TOT plans to lease the network to private telecom operators so they can offer retail 3G services.

Last month, the House of Representatives' subcommittee monitoring investment by state agencies disagreed with TOT's plan to spend heavily on the project, citing its doubt over the project's commercial viability and TOT's marketing ability.

The subcommittee had planned to propose to the committee that the government cancel the project on suspicion that the project was initiated to benefit certain politicians.