Samart aims for bulk of TOT 3G network

Firm plans Bt500m for wireless broadband service

Samart Corp is keen to secure the contract for 40 per cent of the capacity on TOT's upcoming nationwide third-generation wireless broadband network, with a view to making the provision of the service a long-term revenue source.

The company expects to spend Bt500 million on service development if it clinches the deal, Samart president Watchai Vilailuck said yesterday.

Samart has a good record of providing the 3G service for TOT on the state agency's network in Greater Bangkok, he added.

TOT has recruited five partners to provide 3G service on its existing network. They have a combined 500,000 customers, of whom about 200,000 belong to Samart's subsidiary Samart i-Mobile. The company expects the number to reach 400,000 by the end of this year.

Watchai said Samart could gain more customers once TOT completes the nationwide network.

At the end of this month, TOT intends finalising the terms of reference for bidding to lease 3G capacity on its nationwide network to provide service on the MVNO (mobile virtual network operator) basis.

TOT will divide the bids into three tranches: one for 40 per cent of the capacity, and two each for 20 per cent of the capacity. The remaining 20 per cent will be held back, with the agency using half and allocating the remainder to another party.

Watchai believes TOT might think hard about whether to grant the 40-per-cent deal to cellular operators if they were to join the bidding.

If a cellular operator were to win the contract, the same company could then win the licence to pro-vide 3G service from the National Broadcasting and Telecommunications Commission, after which it might focus on promoting its own service rather than TOT's, he said.

Advanced Info Service is interested in joining with TOT to provide 3G service on its nationwide network. However, a telecom industrialist said it remained to be seen whether AIS could clinch the deal from TOT without the risk of criticism over favouritism from the state agency.

Prime minister-elect Yingluck Shinawatra of the Pheu Thai Party, which is forming the next government after winning a majority in Sunday's general election, is AIS's former president.

Besides 3G service, Samart is eyeing bids for the TOT and CAT Telecom projects to set up advanced telecom networks worth a combined Bt30 billion this year.

Watchai said the company would also focus more on mobile-content business, which generated Bt1 billion in revenue and net profit of Bt200 million for the group last year.