DTAC Picks Huawei, NSN for suppliers

The second-largest cellular operator recently signed a five-year "frame contract" with each of the two telecom-equipment suppliers, in order to guarantee it would select their 3G cellular networks when it was ready to roll out its 3G network.

DTAC chief executive Tore Johnsen said the frame contract stipulated prices, service levels, roles and responsibilities of the parties. The company can buy any volume at any time based upon this frame agreement. However, it has yet to finalise the required number of 3G base stations and investment cost.

"We chose Huawei and NSN as our suppliers for the 3G network, both on the 850-megahertz and 2.1-gigahertz frequencies. NSN is currently DTAC's sole vendor for the 2G [second generation] network, but the frame agreement with Huawei can also be used for the 2G network should DTAC so decide," he added.

However, DTAC will likely delay the commercial launch of its 3G service on the 850MHz spectrum from the second quarter as scheduled now, due to regulatory uncertainty.

The commercial launch is pending an opinion by the Council of State on how the public-private joint-venture committee overseeing DTAC's concessions should develop a contract covering the 3G service. DTAC wants to wait until all regulatory issues are sorted out before making a final decision on its next step.

DTAC has pinned its hopes on 3G to be its new growth engine by tapping demand for wireless broadband-Internet access.

DTAC had planned to roll out 5,000 3G base stations nationwide on the 850MHz spectrum. However, it is reviewing that number. A telecom analyst said DTAC was unlikely to spend heavily on the 3G network roll-out during the present economic slowdown.

Each 3G base stations will cost between Bt10 million and Bt15 million.

Like its competitors, DTAC is also eager to secure a 2.1GHz-spectrum licence from the National Telecommunications Commission to provide a 3G service. The watchdog intends to award 2.1GHz spectrum licences about mid-year.