TOT's nationwide 3G project to boost Nokia Siemens' growth

Nokia Siemens Networks (Thailand) projects 25percent sales growth this year thanks to TOT's nationwide launch of a thirdgeneration wireless broadband network, its Asia North head Krittika Mahattanakul said yesterday.

The company generated sales revenue of about Bt5 bilฌlion last year.

TOT has granted a contract worth Bt15.99 billion to the SL consortium of LoxleySamart to establish the 3G network. As part of the deal, Nokia will provide core network equipment and 2,143 of TOT's planned 4,772 base stations around the country.

Samart recently said it would use Nokia and Huawei equipment and install the network in the Central, Eastern and Southern regions. Loxley will use Huawei equipment and install the network in the North and Northeast.

Krittika said Nokia Siemens Networks projected sales growth of 20 per cent year on year in the first half, and 30percent growth in the second half.

He said Thailand's largest cellular operator, Advanced Info Service, remained the company's main customer.

He added that there was continuing demand from cellular operators to improve their existing network capacity, driven by rising demand from smartphone users for data services.

The value of the local networkequipment market should have soared many years ago if 3G spectrum licences had been available, which would have seen telecom operators starting to pour billions of baht into 3G networks. However, the operators are still waiting for licences to use 2.1gigahertz bands for 3G service. The previous Frequency Allocation Act mandated the formation of both the National Telecommunications Commission (NTC) and the National Broadcasting Commission (NBC) to draw up the licensing plans of both sectors jointly.

While the NTC got off the ground in 2004, the Central Administrative Court in 2005 invalidated the selection of 14 candidates for seven NBC seats, citing unconstitutionality.

The subsequent absence of the NBC from the regulatory scene raised a legal question as to whether the NTC alone could grant new spectrum licences.

The NTC eventually decided to auction 3G licences last September, but the planned auction was suspended by the Central Administrative Court after CAT Telecom challenged the NTC's licensing authority.

Now, a new watchdog for both sectors, the National Broadcasting and Telecommunications Commission, is being formed under the new Frequency Allocation Law.

The estimated value of the Thai telecom and informationtechnology equipment market, plus network management services, this year is about Bt30 billion, Krittika said.