TOT, TeleAssets and dtac TriNet on Monday signed agreements to launch the country’s first 4G LTE-TDD network, on the widest bandwidth of 60MHz in the 2300MHz spectrum.
One of agreements is for the lease of telecommunication equipment, and the other for a domestic roaming service.
The deal is a major breakthrough for Thailand’s digital infrastructure to materialise the “Thailand 4.0” vision endorsed by Prime Minister General Prayut Chan-o-cha to reduce inequalities and promote universal access as per the 20-year national economic and social development plan.
The new collaboration will also serve the rapid growth of the country’s mobile users and stimulate a long-term business opportunity for state enterprise TOT.
Under the collaborative framework, which lasts through 2025, TOT will lease telecommunication equipment from TeleAssets – a subsidiary of dtac TriNet – to build a network for broadband wireless access, including fixed wireless broadband and mobile broadband.
TOT will use a portion of the network capacity to provide its services to customers and to drive the government’s digitisation policy.
The remaining network capacity will be used by dtac TriNet through the roaming agreement, under which TOT will receive an annual revenue stream of Bt4.51 billion, said TOT president Montchai Noosong.
In a related matter, Total Access Communication (DTAC) – the parent of dtac TriNet – on Monday reported strong net-profit growth of 474 per cent in the first quarter, posting earnings of Bt1.3 billion.
The company’s share price surged 2.07 per cent to close at Bt49.25 on the Stock Exchange of Thailand.
At the end of the first quarter, DTAC’s subscriber base stood at 21.8 million.
DTAC has maintained its financial guidance for 2018, comprising service revenues (excluding network interconnection revenue) of around the same level as last year.
Chief executive officer Lars Norling said that as DTAC was approaching the end of its concession from CAT Telecom in mid-September, it had greatly reduced business uncertainty by already securing additional spectrum through a partnership agreement with TOT on 2300MHz wireless services.
“Furthermore, we are also in discussion with CAT on a long-term lease agreement for access to concession assets and expect to conclude the agreement before the end of the concession.
Despite the uncertainty on the timeline of the auction for concession spectrums, we are confident that we will be able to provide uninterrupted mobile services to our customers during the transition period,” he added.