Buriram Expats
Buriram Province - General Category => Internet, computers, communication, technology in Isaan => Topic started by: Admin on June 30, 2009, 01:41:30 PM
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Thai 3G licences may be delayed to 2010
Bangkok Post: 30 Jun 2009
www.BangkokPost.com (http://www.BangkokPost.com)
3G licence issue risks delay to 2010
The issuing of third-generation (3G) licences may be put off to the first quarter of next year by a revised schedule from the Office of the National Telecommunications Commission, which could also set back commercial 3G services to late 2010.
The office is to submit its new plan to the National Telecommunications Commission (NTC) board for approval.
The potential delay has revived a familiar concern among mobile-phone operators that commercial 3G services will be postponed to late 2010.
The NTC had earlier approved issuing 3G licences by the year-end, while major mobile operators planned to provide 3G commercial services early next year.
But the much-awaited trial auction for 3G licences will now be put back to January, with licences being awarded by the first quarter of next year, said Suranand Wongwittayakamjorn, secretary-general of the Office of National Telecommunications Commission.
Mr Suranand declined to give the base price, terms and conditions for the auctions, but said regulations and policy guidelines should come mid-September.
Wichian Mektrakarn, the president of Advanced Info Service (AIS), said if the NTC further delays issuing 3G licences, AIS faces a loan
commitment fee from banks for keeping open the company's credit line.
AIS applied for 10 billion baht in bank loans to spend on its 3G investment project by the year-end.
"If the issue is delayed a quarter, we will be inevitably charged a commitment fee for three months to continue making available unused loan facilities", he said.
Athueck Asvanund, vice-chairman of True Corporation, said 3G services would be introduced at least six or seven months after a delayed issuing of licences.
But Tore Johnsen, chief executive of second-ranked DTAC, said if 3G has to be delayed to the first quarter, it would not make any significant difference to earlier projections.
"We have no plan to change our 3G outlook now as no significant changes are seen in the whole picture", he said.
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DTAC starts limited 3G trial in Bangkok
Bangkok Post: 1 Sep 2009
www.BangkokPost.com
DTAC starts 3G trial in Bangkok
DTAC yesterday started a 100-million-baht third-generation (3G) wireless broadband trial on its analogue 850 Megahertz frequency in inner Bangkok.
The first phase of the trial only features 18 base stations covering Chulalongkorn University, Pantip Plaza, MBK, Siam Square, Sam Yan and Chamchuri Square. The company has upgraded its analogue 850 MHz to high-speed packet access (HSPA) technology to provide data service at the initial stage.
Another 18 base stations will be set up outside Bangkok by December.
The trial will give 2,000 selected customers free 3G mobile broadband though DTAC aircards for notebook computers. But the company will limit data volume to no more than 5 gigabytes per month.
DTAC 3G has a theoretical top speed of 7.2 Mbps, but would average 5-6 Mbps in reality. Huawei of China supplied the 3G network and aircards.
CEO Tore Johnsen said DTAC is focusing on wireless internet over notebook computers to capitalise on demand for data usage. DTAC saw a 25% increase in data revenue in the first half of this year, compared with the same period last year.
"We believe the real value coming with 3G is its ability to offer consumers a wider and better high-speed internet access, now being limited to fixed-line solutions or WiFi hotspots," he said.
Thailand's broadband penetration is very low at only 2%, compared with 4% in Vietnam, 8% in Malaysia and 24% in Singapore. Thailand is estimated to have only 9-10 million personal computers.
DTAC is likely to build 3G networks on both the analogue 850 MHz and 2100 MHz bandwidths, he said. But budget and business details await clear licensing terms and conditions, as well as a ruling by the public-private joint committee set up under Section 22 of the charter.
DTAC is confident of achieving its cashflow target of 12 billion baht this year following an internal restructuring and cost controls, said Mr Johnsen.
Revenue growth is not necessarily important for DTAC under the current economic situation, he said.
Mr Johnsen expects the mobile industry to only edge up in the fourth quarter and the industry to have only 3-4 million new subscribers this year, compared with 9 million last year.
He denied rumours that Vodafone aims to take over DTAC. The firm has only signed a co-operation agreement with the British operator on international roaming and business solutions, he said.
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DTAC works at a slow speed in town ( about 120kbps), I tried it 15 kilo out, and its terrible. Probably too many people on it. I sure hope the story is not just a dream, would be nice. Wonder how many years it will take to actually happen.
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Thai 3G auction may be held on Dec 8
The Nation: 2 Oct 2009
TELECOM LICENSING
3G auction may be held on Dec 8
The national telecom regulator has set December 8 as the tentative date for the auction of four 3G-2.1GH licences, commissioner Sethaborn Cusripituck said yesterday.
A source at the National Telecommunica-tions Commission said the NTC expected to finalise the range of the reserve price for each licence at between US$150 million and $200 million (Bt5 billion-Bt6.7 billion).
The reserve price is the minimum amount the NTC expects to gain from each licence auction.
The watchdog will hold a board meeting next Wednesday to finalise the details, including the auction date, reserve price and bid starting price.
Sethaborn said the board would discuss whether it would reveal the reserve price, and whether the reserve price and the starting bid price should be the same.
The meeting will also see the watchdog finalising the contingency plan in the event of the number of those qualified to bid for the four licences being the same as or lower than the actual number of licences.
The NTC is concerned that if this were to be the case, there would be no genuine competition in the bidding.
Sethaborn said that if this were to happen, the NTC might not inform the qualified bidders of the number of bidders they are contending with. It might also surprise them by putting up fewer than four licences in the auction, in order to promote competition.
NTC secretary-general Suranan Wongvithayakamjorn said investors from India, Malaysia and Indonesia had asked the NTC for details of the auction, but he declined to specify their names.
NTC member Sudharma Yoonaidharma said he was opposed to holding the 3G licence auction so soon, as the national regulator had yet to come up with much crucial information for potential bidders.
He said that before the auction, the NTC should provide a comprehensive map of the details of all telecom networks in Thailand, so that those who are not current operators could clearly ascertain where they could roll out networks should they be awarded a licence.
He added that the NTC auction plan seemed to favour incumbent operators. Moreover, it seems the NTC's granting of the 3G licences has been publicly perceived as a way for the private telecom concession holders to move customers from the concessions to the 3G licences in order to reduce their costs.
The private mobile-phone concession holders have to pay an average of 20 per cent of their revenue to one of the state concession owners, TOT and CAT Telecom. A 3G licence, however, is expected to cost them 6 per cent of their revenue per year.
Sudharma said he wanted to see Thai companies having a chance to win or share in the benefits from the 3G licences. He stressed that he did not mean True Corp, as True is a giant Thai telecom operator, but rather the smaller domestic companies.
In the NTC's public hearing on 3G licence and auction conditions this past Monday, True strongly opposed many points, including licences being granted via the auction process, citing that the method favoured large companies over smaller operators.
Senator Anan Woratitipong yesterday said the 3G licence auction would stimulate economic growth, given that it would lead to huge investment by bid winners in terms of licence payment and then network roll-out, which would create jobs.
Anan does not expect the auction bidding to rise too high.
The NTC, which marked its fifth anniversary yesterday, has invited Prime Minister Abhisit Vejjajiva to give a speech on Monday on the role of the independent regulator in the country's development.
Meanwhile, the watchdog returns money to the state coffers every year after deducting expenses from the regulatory fees it collects.
NTC deputy-secretary-general Takorn Tantansit said it had returned Bt158 million in the first year of establishment, Bt839 million in the second year, Bt795 million in the third and Bt2.6 billion last year.
It is expected to return Bt1.3 billion to the government this year.
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ICT Minister puts brakes on Thai 3G
Bangkok Post: 5 Oct 2009
Minister puts brakes on 3G
Foreigners favoured, TOT and CAT suffer
The long-delayed auction of third-generation (3G) mobile broadband licences scheduled for mid-December could be put on hold indefinitely if Ranongruk Suwunchwee has her way.
The Information and Communications Technology (ICT) minister wants the auction put off as long as possible, reasoning that the conditions deter state telecom enterprises and favour foreign players.
"These conditions discourage TOT and CAT Telecom but pave the way for foreign players to freely bid and grab our national resources," Mrs Ranongruk said after meeting executives of both state telecoms over the weekend.
She said the 3G draft terms from the National Telecommunications Commission (NTC) state that a qualified bidder must be a Thai entity or have foreign partners holding not more than 49% under the Telecom Business Law. Bidders must possess spectrum in the range from 1.9 to 2.1 Gigahertz.
The minister said that the TOT subsidiary Thai Mobile owned the 1.9 GHz spectrum and planned to launch the first phase of its 3G services in December with 500 base stations. TOT is also planning to invest 20 billion baht for a nationwide network.
CAT Telecom, she said, was disqualified under the current 3G auction rules because it has the Finance Ministry as a major shareholder, the same as TOT.
Mrs Ranongruk said she would outline her views today to the NTC, which plans an event to celebrate its fifth anniversary, at which Prime Minister Abhisit Vejjajiva is to be a guest speaker.
She warned both TOT and CAT Telecom could go bankrupt if 3G licences are awarded under the current conditions.
Telecom analysts say private operators could form new entities to bid for 3G licences, and then shift their existing customers to the new 3G services. This would allow them to reduce the revenue-sharing payments that are the financial lifeblood of the concession owners, TOT and CAT.
TOT chairman Teerawut Boonyasophon said that since TOT and CAT contributed large sums of their concession revenue to government coffers, the NTC should not think only of the money it could make from foreign bidders alone.
But NTC chairman Gen Choochart Promprasit insisted the regulator could not put off the auction because it was its duty under the Telecom Business Law.
He also said that the Council of State had offered a legal interpretation that the NTC could allocate frequency since the National Broadcasting Commission, which is supposed to have that duty, has never been formed.
However, if the cabinet asked the NTC to put off the auction, its board would have to consider the matter seriously, he acknowledged.
Advanced Info Service chief executive Wichien Mektrakarn said that what Mrs Ranongruk was doing was inappropriate and was interfering with the industry's growth.
He said TOT had 3G spectrum long before any other operator but had failed to add value to the resource, and that CAT Telecom also had a CDMA service that could be developed into 3G. "It would be very ugly if the ICT minister does as she plans," he said.
"As private operators, we might have to team up against it."
True Corp, however, also opposes the current 3G auction terms because it says they favour its two rivals, AIS and DTAC, which have foreign partners while True is Thai-owned.
www.bangkokpost.com/business/economics/25065/minister-puts-brakes-on-3g (http://www.bangkokpost.com/business/economics/25065/minister-puts-brakes-on-3g)
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3G ?????!!!!! confused4 Try to get a decent internet connection in Lahan sai remote village. :D :D
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Thai 3G starting bid prices $100-200m
Bangkok Post: 12 Oct 2009
http://www.bangkokpost.com/business/economics/25480/3g-starting-bid-prices-100-200m (http://www.bangkokpost.com/business/economics/25480/3g-starting-bid-prices-100-200m)
3G starting bid prices $100-200m
Writer: KOMSAN TORTERMVASANA
The minimum reserve prices for 3G mobile broadband spectrum have been set in the range of US$100-200 million (3.3 to 6.6 billion baht) by the National Telecommunications Commission (NTC).
Gen Choochart Promprasit, the chairman of the industry regulator, said the prices would be submitted to the NTC board for approval on Wednesday along with the draft 3G auction rules and comments by the prime minister.
He said the prices were considered thoroughly based on several criteria. These included industry data, auction prices in other countries, prices of spectrum that TOT had returned to the NTC, and prices of the 1900 MHz spectrum that TOT bought from CAT Telecom for the Thai Mobile service.
He said the auctions would be for four licences for a total of 45 MHz. Three licences would be for 10 MHz each and one for 15 MHz spectrum, which would have a higher minimum reserve price.
Gen Choochart said the NTC would call another public hearing on Oct 29 to respond to questions industry executives raised at the first session on Sept 28.
He insisted that the six-member NTC board still had the authority work on policy matters although three of them had drawn lots to quit two years ago but their replacements were never named.
True Corp vice-chairman Athueck Asvanont said that his company's board had discussed the 3G auction and how it could prepare for it.
He said True wanted changes in the draft auction rules, in particular calling on the NTC not to focus merely on the money it could earn, and not to discourage Thai-controlled companies.
Mr Athueck said it was important that companies such as True could compete fairly with larger rivals with major "foreign state" shareholders.
The comment was a reference to top-ranked Advanced Info service, which has Singapore's Temasek Holdings as a major shareholder, and second-ranked DTAC, controlled by Telenor of Norway.
He said True suggested that qualified bidders should be companies in which foreign firms held shares via investment funds but had no voting rights.
Another option was to allow Thai companies to possess 3G spectrum at more than half of the allocated amount.
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PM wants answers on Thailand 3G auction
Bangkok Post: 15 Oct 2009
www.bangkokpost.com/news/local/25621/abhisit-presses-for-answers-on-3g-auction (http://www.bangkokpost.com/news/local/25621/abhisit-presses-for-answers-on-3g-auction)
Abhisit presses for answers on 3G auction
Prime Minister Abhisit Vejjajiva has increased the political pressure on the National Telecommunications Commission over the 3G mobile service by demanding it answer the questions he has posed over the planned auction of licences.
Mr Abhisit has insisted the bidding for the service be fair, transparent and non-discriminatory towards the state telecommunications companies.
Meanwhile, the parliament's human rights protection committee has pledged to scrutinise the NTC and its authority to call the auction.
The prime minister repeated his demands at a meeting of his economic ministers at Government House yesterday. At the same time, the labour unions of CAT Telecom and TOT Plc rallied with posters opposing the NTC's auction of the 3G licences in December.
While telling his economic ministers that the auction was within the authority of the NTC, Mr Abhisit said the regulatory body should give clear explanations to the questions which he had raised earlier.
At its fifth anniversary celebration, he had told the NTC to ensure the auction would be fair, transparent and that CAT and TOT should not be disadvantaged when entering bids.
He voiced concern that foreign investors with formidable capital would win the licences, especially if the highest bid price was the ultimate goal of the NTC. That would mean higher costs which would have to be passed on to consumers in the form of expensive services.
He said the NTC had to ensure foreign investors did not have an advantage over Thai companies with limited funds.
At yesterday's meeting, Mr Abhisit said existing mobile companies operate under different concessions and different rules. But now they will have to compete in a free and open market and the NTC needed to ensure free and fair competition in the auction.
The economic ministers agreed to the planned auction but advised both TOT and CAT to adjust their strategies to be ready for competition.
Prime Minister's Office assistant minister Putthipong Punnakan said Finance Minister Korn Chatikavanij had advised both state telecoms to adjust for new competition with a promise to give them financial support if they have problems.
Outside Government House, the CAT and TOT unions gathered to oppose the planned auction.
Union leaders Pongthiti Pongsilamanee from CAT and Sukhum Chuenmanow from TOT later went to parliament and submitted a protest letter to the Human Rights Committee chairman Somchai Sawaengkarn.
The unions said the auction breached Article 47 of the constitution which has not listed the NTC as an independent organisation. The letter said the NTC now had only three sitting members from the original seven and therefore lacked a quorum under Article 50 of the Frequency Allocation Law.
It questioned the hastiness of the NTC to call the auction as the unions felt it was not ready.
The unions said a significant point was that the National Broadcasting Commission had not yet been formed, meaning there was no joint committee to allocate frequencies.
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tired1
DTAC: 3G delays hit confidence
Published: 17/10/2009 at 12:00 AM
Newspaper section: Business
DTAC has warned that any further delays in 3G licence auctions could deter foreign investment and undermine the credibility of government policy.
If the government changes the way it treats foreign investors, it could damage the investment environment, said Tore Johnsen, CEO of the country's second-largest mobile operator.
But he expects a delay to be only of weeks or months, and said DTAC is confident of winning a licence. The National Telecommunications Commission (NTC) hopes to award four 3G licences by the year-end - three for 10 MHz and one for 15 MHz.
Mr Johnsen argued that the reserve price for a 3G licence should be between 2 billion and 4 billion baht, not the 10 billion set by the NTC. "The price is unreasonably high and tarnishes free and fair competition rules," he said.
He also suggested the NTC change the payment terms for 3G licences from a lump-sum to only half of the fee first and then installments over 10 years or over the whole life of the concession.
"This will give TOT and CAT Telcom a revenue stream on a yearly basis, while easing private operators' financial burden," he said, referring to state telecom enterprises that rely heavily on concession revenues from private operators.
Mr Johnsen rejected concerns that private operators might migrate their customers from the current concession-based companies to avoid sharing revenue with the state enterprises.
He said 3G was considered a supplementary service and firms could not force customers to move from voice-based service to mobile data numbers.
3G would take some time for the market to fully take up given the time for network rollout and the full availability of 3G handsets and devices, he added.
"TOT and CAT would only face a drop in revenues on a gradual basis, not a zero amount," he said. Private operators would still need to use existing 2G networks, which means the two state enterprises could earn new revenue from infrastructure rental fees under the build-transfer-operate contracts, he added.
The two state enterprises should adjust their business direction and prepare to face a new regulatory system, he said.
Mr Johnsen urged all parties to recognise that consumers, businesses and the country would benefit from 3G because the communication infrastructure would be faster and more efficient.
Commenting on concerns that "foreign state companies" - as rival True Move terms the shareholders of DTAC and top-ranked AIS - could threaten national security, he said he saw no regulatory difference between the existing 2G and 3G.
While Telenor, DTAC's major shareholder, is a state enterprise of Norway, the company is a passive shareholder in DTAC and the Norwegian government is not involved in the company's business activity, he said. "There should be nothing to be concerned about since Norway has only 4 million people."
DTAC is in compliance with foreign shareholding rules, and he sees no need to adjust its shareholding structure to respond to speculation, he said.
In his view, only one or two foreign companies will participate in the 3G bid given the 100% penetration rate of mobile phones, unclear regulations, a potentially troublesome 3G bid process, and unclear definitions the roles of TOT and CAT. A foreign company without a 2G operation in Thailand would also be at a disadvantage, he said.
DTAC shares closed yesterday on the SET at 40 baht, up 2.50, in trade worth 473 million baht.
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Thailand 3G auction date now in doubt
Bangkok Post: 20 Oct 2009
www.bangkokpost.com/business/telecom/25897/3g-auction-date-now-in-doubt (http://www.bangkokpost.com/business/telecom/25897/3g-auction-date-now-in-doubt)
3G auction date now in doubt
Writer: KOMSAN TORTERMVASANA
The National Telecommunications Commission now says that staging a 3G licence auction in December is less of a priority than ensuring that the rules are clear so that the auction will be a success.
Gen Choochart Promprasit, the chairman of the telecom regulator, said the priority now was making sure the auction rules are ready in December.
He said the NTC needed to prepare itself to allocate spectrum for the highly anticipated mobile broadband services instead of dealing with a national debate.
The NTC anticipated pressure as the auction neared, he acknowledged.
The regulator has faced criticism in recent weeks for rules that appeared to favour deep-pocketed foreign entities over locally owned telecom companies and the two state enterprises, TOT and CAT Telecom.
Part of the problem, Gen Choochart said, stemmed from the complicated original structure of the telecom industry, particularly the concessions of each operator, which differed in terms of revenue sharing, and the varying financial strength of the operators.
He also believes the regulator is facing pressure to make the 3G licences cheaper, but says lowering the price any further is impossible. The NTC has proposed starting bid prices of 10 billion baht.
He said another public hearing on the auction rules was scheduled for Nov 5. The NTC will present the finished draft to the public, and it will also cover national security concerns and the financial impact on both TOT and CAT from the expected loss of their concession revenues.
Nominees holding stakes beyond the official ceiling for foreign state enterprises will also be discussed.
After the Nov 5 hearing, the NTC will conduct a focus group meeting with top executives of TOT, CAT, mobile phone operators and the Information and Communications Technology Ministry to reach an agreement and complete the final draft before making it an official rule.
He said the NTC could not set an exact date for the auction but would like to have the rules completed by December.
TOT should not look at only one issue regarding 3G licences because private operators could not move their customers out of a network immediately. Migration to a 3G network takes time and might finish after their concessions expire, he said.
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that will take long....................................... I'll be happy with only 1G :unsure:
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Compromise on Thai 3G, more confusion
Bangkok Post: 28 Oct 2009
OPEN Thought
Compromise just causes more confusion
www.bangkokpost.com/tech/technews/26432/compromise-just-causes-more-confusion (http://www.bangkokpost.com/tech/technews/26432/compromise-just-causes-more-confusion)
Writer: Don Sambandaraksa
The recent clarification by the Cabinet of Ministers over the 3G auction has only added further uncertainty to our already troubled telecommunications sector. It was a fudge, a compromise and one which failed to address the real issue at hand: the future of state enterprises CAT Telecom and ToT Corporation and whether the sector is best served in the hands of the free market of the state.
The economic cabinet meeting gave a green light to the 3G auction but raised four areas of concern: To take into account the 3G plans that CAT and ToT already have; that it must be made clear that the infrastructure should be new and not part of the 2G infrastructure that is soon to be handed back to the state; national security must be considered and the NTC should not simply focus at getting the highest bid but must look at the greater good.
In one way or another, all four points tie back to the current web of a concession contract that we have between the mobile operators and their concession owners, CAT Telecom (DTac and TrueMove) and ToT Corporation (AIS).
When the concessions were given out back in the early 90s, there was no independent regulator, the function being in the hands of the Post and Telegraph Department, while the Communications Authority of Thailand and the Telephone Organisation of Thailand were state enterprises. The concessions have a revenue-share model in which the percentage would be ramped up as the concession progressed. Now it is at 25 percent and soon will go up to 30 before ending in six to nine years' time, depending on when the concession was signed.
Therein lies the problem. CAT and ToT are acting as tax collectors, but they are allowed to use the money first for their own network expansion to sort-of compete with their concessionaires before handing back the rest to their shareholder, the Ministry of Finance. Over the years, both state enterprises have used this semi-independence to their advantage. When the ICT Ministry gets too involved through policy, they argue they are owned by the Ministry of Finance and answer to their shareholders as any public company must. When the shareholder wants more dividend payout, they say that they are a state organ under the ICT Ministry and have to invest for the public good.
This duality recently hit home with ToT's stance against the 3G auction. ToT wants in on a postponed auction and its union actually wants it called off, saying that the NTC has no legal standing under the 2007 constitution, which calls for a converged NBTC (broadcasting and telecommunications), but the reason it cites is interesting.
At a recent seminar on regulation, ToT Executive Vice-President Kittipong Tameyapradit defended the move as protecting the country's interests. He argued that with AIS paying 12 billion baht a year and with six years left on the concession agreement, a 3G licence would cause them to move all their customers to 3G in order to avoid paying the revenue share and instead pay just 6 percent to the NTC. This would cost the country 72 billion baht in lost revenue.
Another example is DTac's 3G adventure. DTac was the first to move to 3G by telling its concession holder, CAT, that it would be performing a network upgrade from AMPS to HSPA on 850 MHz. Rather than just acknowledge the upgrade, CAT said it had to run as a virtual network over CAT's network and imposed many conditions such as having CAT as a termination point for calls and using it for international calls. DTac CEO Tore Johnsen said his relationship with CAT should have been that of a leasing company and a car that one drives as long as the leasing company is paid it should not have any say on how the car is used. Obviously CAT interpreted the contract differently.
So are ToT and CAT government organs that help to regulate the industry and act as collectors of tax or are they merely operators soon to be spun off to be independent and fend for themselves? Nobody seems to want to decide.
It has often been said that privatisation is not inherently bad, rather it is botched privatisation that is bad, where roles are unclear and state monopoly is simply transferred to a private one. This could not be more true here. The roles of CAT and ToT are not well defined; one moment they are told to find a market niche and fend for themselves, the other they are being told by their political masters what they can and cannot do. As a collector of tax, they are not doing a particularly efficient job, running up huge losses in their operations that have to be offset against the revenue share in order to hand back the spare change to the Finance Ministry. As an operator, well, when did Thai Mobile or the Hutchinson CAT CDMA joint venture make the headlines in a positive way?
Universal Service Obligation (USO) is another issue. CAT and ToT contribute to a USO fund and then run projects that help the underserved in rural areas. At least that's the idea. In practice, it's little more than extra publicity.
CAT launched a CDMA EV-DO cell in Mae Lana in the far north, near the Burmese border. That might have been a good idea if AIS had not put up a gleaming cellsite already in the middle of the village to provide much better coverage that the EV-DO cell that was in the roof of the village school. Why? Well, apparently the project was badly delayed as CAT cannot build on land which does not have proper documentation and little of the land in the rural areas that USO is supposed to serve has that.
Another was the NTC's own WiMAX pilot project with TT&T, again in the far north in Chiang Rai. 'WiMAX comes to Thailand' is the headline they wanted. Unfortunately it was just two WiMAX cells, one with four schools and the other with just one. The cost of the plane tickets of journalists and executives flown up to attend the launch could have easily paid for the schools to be wired up conventionally.
The continued existence of the state enterprises in some sort of limbo, neither public or private, neither dead nor alive, serves only to distort the industry and create inefficiencies in the system. As cities are saturated, USO projects are nary needed as operators need to go further and further to find new users, at least if they have a long enough contract with a level of certainty.
With the contracts coming to an end and the operations soon to be handed back to CAT and ToT, which operator in their right mind would continue investing in their network, both for expansion and capacity and technology upgrades? By forbidding new 3G to piggyback on 2G backhaul network infrastructure, it may create a level playing field, but at what cost and what waste? Modern equipment can be changed from 2G to 3G to WiMAX or even LTE with just a swap of the last box, aerial and a software reconfiguration.
It has been said that in any long-term concession, the last five years are the worst and Thailand's 2G telecommunications sector is about to hit those last five years soon. Running a mobile network, unlike a TV broadcasting station, needs continuous investment, not just one big bang at the start.
But the government is not going to change things. It lacks the political will to drag up an ugly situation. Even if they had the competence, former state enterprises cannot survive in a free market as they are burdened with huge amounts of debt. Some of that debt is kosher, but much of it was piled on them just to make the government books look better as debt belonging to a company is not sovereign debt.
In an ideal world, the government would simply take on the debt and fully privatise the telcos, returning power to the regulator in the process and generating clarity for all. But it is not something that they can afford to do, politically or financially.
Together, CAT and ToT take in almost five percent of the exchequer's annual budget.
How long has Thailand suffered lack of infrastructure because of this mess? How much has that cost Thailand in terms of lost productivity and opportunity?
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Thai ICT Minister: TOT 3G to proceed
: 10 Nov 2009
ICT minister vows TOT will proceed with 3G roll-out
By Sirivish Toomgum
Information and Communications Technology Minister Ranongruk Suwanchawee yesterday said TOT would push ahead with its third-generation wireless broadband projects.
This was despite recent suggestions it wait for the telecom regulator's rules for the upcoming 3G auction.
The National Telecommunications Commission (NTC) has yet to finalise its rules to auction off four 3G 2.1-gigahertz licences, nor has it cleared any possible legal obstacles to its authority to grant them.
Ranongruk insisted the ICT Ministry had final authority over TOT's plan.
State-owned TOT is scheduled to kick off its 3G 2.1GHz wireless broadband service on December 3 on its existing network in the greater Bangkok area.
It also plans to roll out its new 3G 2.1GHz network nationwide, with 3,800 base stations.
Ranongruk said TOT's 3G-network roll-out had nothing to do with the NTC's plan to auction the 3G licences and that the two issues should not be mixed together.
The NTC role is to grant the spectrum licences, but TOT already has its own 3G spectrum.
"We will not stop. We have our own clear stance, so TOT will move ahead with its 3G plan, because it already has a 3G-network business plan," Ranongruk said, adding that the project was consistent with government policy on national telecom development and widespread access to services.
Initially, TOT was to spend Bt29 billion on the network, but this was scaled down to Bt20 billion. Once operational, the network will be leased on a wholesale basis to telecom operators, so they can provide services.
TOT finished the terms of reference to procure the 3G network equipment for its new 3G network nationwide roll-out. It will invite interested firms to buy the bid documents at the end of this month, with bidding to be finished next April.
The complete network roll-out will take two years.
Meanwhile, Policy Watch, a group founded by lecturers at Thammasat University's Faculty of Economics to monitor government policies, proposed the NTC make sure its planned 3G-licence auction bring maximum benefit to consumers.
It also proposed if 3G operators migrate customers from the state concessions to their 3G licences, they be subject to excise tax, with the amount equal to their concession fee.
That would discourage them from migrating customers from concessions to 3G licences if they can obtain a licence from the NTC.
Many parties have opposed the NTC's 3G licensing on the grounds the licences would pave the way for private mobile concessions to migrate customers from the concessions to the licences, in order to save on regulatory costs. Their concession fees average 25 per cent of their revenue, while the annual licence fee would cost them only 6.5 per cent.
Policy Watch also proposed the NTC wait for the Senate to appoint four new NTC commissioners before holding the auction.
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Private operators: TOT 3G too cheap
Bangkok Post: 7 Dec 2009
Private operators claim TOT charging too little for 3G
Private telecom operators say that TOT Plc is charging unrealistically low fees for its new 3G mobile services, which do not reflect the large investment required.
The state telecom enterprise's pricing strategy is likely to hurt the overall industry and the country as taxpayers' money is involved, the private operators say.
Mobile virtual network operators (MVNO), the private companies that provide the service for TOT, are also crying foul over its fixed-rate promotions that offer them low returns.
TOT on Thursday launched its 3G mobile broadband service in Bangkok and surrounding areas, initially through 548 base stations.
It offers postpaid promotional campaigns starting at 199 baht per month for 199 minutes of voice and video calls, plus 199 megabytes of data usage. For the highest tariff plan, customers pay 699 baht per month for 699 minutes of voice and video calls each, plus 1,000 MB of data usage.
TOT has a nationwide network roaming agreement with Advanced Info Service for 12 months. AIS will charge TOT 1.10 baht a minute for calls that TOT customers make to AIS subscribers, and 2.10 baht a minute for calls TOT users make to the DTAC and True Move networks.
"This clearly provides evidence that TOT is subsidising its 3G service and making a loss. It is putting taxpayers' money at risk," said an industry executive who asked not to be named.
The executive said he understood that TOT needed to cut prices to attract customers due to the limited commercial value of the new 3G service. But he asked whether the Finance Ministry needed to shoulder any further possible loss for TOT.
Even though mobile operators are expected to see some initial impact from TOT jump-starting 3G, the source believed the existing low rates would end once TOT stages a full commercial launch nationwide.
Another executive expressed concern that the TOT tariffs might set an industry benchmark for high-speed broadband internet prices and ignite a price war.
One MVNO company executive wants TOT to allow operators to set their own rates, instead of forcing them to follow its tariff plans.
"Though we [MVNO] had no costs in building the network, we have expenses from other operating services that need to be recovered," he said, adding that "3G should be a matter of high quality of speed and services, not cheap prices."
www.bangkokpost.com/business/economics/28812/private-operators-claim-tot-charging-too-little-for-3g
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Thai PM wants 3G plan completed
: 15 Dec 2009
3G plan completed in 6 months: PM
Prime Minister Abhisit Vejjajiva yesterday instructed the Information and Communications Technology Ministry to complete plans for TOT's 3G service and for concession conversion within six months.
He also advised the ICT Ministry to overhaul the operations of CAT Telecom and TOT, the two state telecom enterprises under the ministry, to improve their performances.
He wants to see the 3G service offered in the country.
But TOT has to have a clear vision on how to proceed with 3G if it wants to limit its role to providing the 3G network on a wholesale basis, or providing both the network service and a retail 3G cellular service.
TOT also should wait for the National Telecommunications Commission (NTC) to finalise the auction rules for the 3G-2.1GHz licences before moving ahead with its plan to roll out a nationwide 3G network, he said.
This is to prevent a possible conflict between the NTC's auction rules and TOT's 3G business direction.
TOT already launched its own retail 3G-2.1GHz service on December 3 - but only covering Greater Bangkok - over its old 2G network, which has been upgraded to 3G.
It is marketing the new high-speed service to its 20,000 staff and the 10,000 customers of Thai Mobile, its cellular service subsidiary.
It has also appointed five companies to market their 3G services to the public using its network.
TOT is seeking approval for its plan to roll out a brand-new 3G network nationwide at a cost of Bt20 billion.
Abhisit told the ICT Ministry to come up with a clear plan to deal with the amendments of some telecom concessions under CAT and TOT over the past years, which did not follow the Public-Private Joint Venture Act of 1992.
The ministry also has to come up with a clear plan for concession conversion.
ICT Minister Ranongrak Suwanchawee said his ministry was also expected to finalise by next month a plan to deal with the ending of the service life of the Thaicom 2 satellite next year.
The ministry has studied three options - granting a new satellite concession to a new service provider, asking Thaicom to build a replacement satellite or allowing Thaicom to lease a foreign satellite to continue providing the service.
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TOT told to improve Bangkok 3G service
Bangkok Post: 3 Jan 2010
ICT minister tells TOT to improve 3G service quality in Bangkok in 90 days
Information and Communications Technology Minister Ranongruk Suwanchawee said Sunday that she had instructed the TOT Plc to improve the network and quality of 3G wireless broadband service in 90 days.
Ranongruk said the TOT must ensure that the signals of its 3G 1900 MHz will work well in Bangkok in three months.
She said the TOT would also have to rush to expand its customer base to meet the target of 500,000 numbers.
She said the TOT is now drafting a business plan to launch its service in major provinces, which are tourist destinations, in the second phase expansion.
The business plan will be submitted to the National Economic and Social Development Board for approval by the middle of this year.
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Thailand among last in Asia for 3G switch
Bangkok Post: 6 Jan 2010
Last one in, again
Never in Thai history has a story that didn't happen so dominate the news and clearly emerge as the Technology Story of the Year; just before the New Year, your TOT flipped a switch that started providing bandwidth of the third-generation kind in a couple of obscure corners of Bangkok, but in truth, 2009 was the year that Laos and Cambodia totally humiliated the telecoms state enterprises by leaving Thailand a far, distant last among Asian countries providing 3G service to yuppiephone subscribers.
In late November 2009, TOT Corporation claimed it had launched a 3G phone service, making Thailand once again as advanced as Laos and as technologically capable as Cambodia.
Okay, you should have a cellar of salt handy, but information specialists Research and Markets made this prediction: There will be 87.3 mobile phone subscribers in Thailand within four years, but the market share of Advanced Info Service will shrink to "only" 41.4 percent of them - 36.1 million users.
Prime Minister Abhisit Vejjajiva called up Information and Communications Technology Minister Ranongruk Suwanchwee on one of those old, yucky 2G phones and asked her to drop by for a chat about the progress she is making on installing spiffy new third generation (3G) networks; Mrs Ranongruk was thrilled to tell the PM that her husb... that she had organised TOT Corp to have some 3G connections by Dec 16, funded locally for 20 billion baht, and she was right; no one really wanted a service that worked in a few locations in Bangkok, but she was right.
For those with no contestant in the dogfight around 3G, it was marvellous entertainment watching the powers that be think up new reasons for not simply going ahead with a minor - if important - upgrade to the telecoms system; it was all in the name of trying to save the overcooked bacon of your TOT and your CAT Telecom, neither of which have a smidgin of hope of survival according to their current business plans; after the Magnificent Seven of the National Telecommunications Commission dillied and dallied over when and how to have an auction, after the best minister of information and communications technology of the entire year bent to the task, after Prime Minister Abhisit Vejjajiva promised and unpromised 3G service and bandwidth auctions within 2009, finally Finance Minister Korn Chatikavanij spilt the beans: There will be no 3G service, no auction until after the private companies agree to sign new contracts allowing your TOT and your CAT Telecom to continue skimming their gross revenues in the system euphemistically known as concessions; TOT and CAT are to continue to operate a duopoly without the messy bit about actually providing any service of their own.
Your CAT Telecom claimed huge success for 2008 but the figures actually showed how weak it is, because more than half of the money in all categories now comes from concession fees.
Information and Communications Technology Minister Ranongruk Suwanchwee said TOT is expected to call for international bids for procurement of goods needed to build a nationwide 3G network in April; everyone knows the dependability and credibility that Mrs Ranongruk has established in a mere one year on the job; mean-spirited people, however, claimed that certain well-placed politicians might be planning to take a piece of the procurement bid, and they should be ashamed of themselves for having such thoughts.
Since there is no pressure on Thailand to be first or even second-last in Southeast Asia to get third-generation yuppiephone service, the head of the National Telecommunications Commission urged everyone to slow down and listen to all opinions on the subject; the important thing, said chairman Gen Choochart Promprasit, is to get it right
Your TOT and your CAT Telecom heavily criticised Mr Korn for his announcement of a 90-day 3G moratorium while negotiations on new concessions contracts take place; oh, bragged your TOT board chairman Teerawut Boonyasophon, it will take way, way longer than that, because this concessions stuff is complicated.
www.bangkokpost.com/tech/techscoop/30563/last-one-in-again (http://www.bangkokpost.com/tech/techscoop/30563/last-one-in-again)
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AIS plans Bangkok 3G service for Feb 1
Bangkok Post: 20 Jan 2010
AIS plans Bangkok 3G service for Feb 1
Advanced Info Service (AIS) plans to start providing 3G wireless broadband services in Bangkok on Feb 1 along with TOT Plc's 3G services through a data roaming agreement.
The country's largest mobile-phone operator says it is ready to work with its concession provider TOT in a joint venture or co-investment in the state enterprise's 3G project if 3G licensing remains stalled.
CEO Wichian Mektrakarn said co-operation was necessary for AIS to keep its subscribers and deal with the uncertainty over 3G licences.
It would also allow it to cash in on increasing mobile data demand as 3G will be a key strategic marketing tool for operators to attract new customers this year, he said.
Mobile internet demand soared by 400% last year with 12 million users out of 69 million mobile users. Mobile internet users are expected to reach 18 million this year.
AIS will provide trial 3G services in the first month targeting heavy data users. It plans to offer 3G commercial services for postpaid customers in the first phase. Customers are required to purchase a SIM card for a new phone number allowing use of three network services: TOT 3G in Bangkok, AIS 3G in Chiang Mai, Chon Buri and Hua Hin, and AIS's Edge services outside of TOT 3G service areas.
It is discussing tariff rates with TOT, he said.
"We expect to have at least 20,000 subscribers in the first month of our services," said Mr Wichian.
He said AIS planned to spend 11 billion baht in 2010, with an additional planned budget of 45 to 50 billion for 3G under a three-year plan.
It plans to expand its 3G services on 900 MHz into another 15 provinces this year and wants to invest in fixed-line broadband service in underserved residential areas and with new businesses.
AIS projects revenue to grow by 3-5% this year, exceeding 100 billion baht after contracting in the first nine months of last year. It expects its data and non-voice revenue to grow by 20%.
AIS expects to add 1.5 million new subscribers this year out of an industry total of 3 million, bringing its total to 30 million by year-end.
The mobile industry is expected to grow 3-5% with a market value of 205 billion baht in 2010.
AIS shares (ADVANC) closed down 50 satang yesterday on the SET at 83.25 baht, in trade worth 516 million baht.
http://www.bangkokpost.com/business/telecom/31314/ais-plans-bangkok-3g-service-for-feb-1 (http://www.bangkokpost.com/business/telecom/31314/ais-plans-bangkok-3g-service-for-feb-1)
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AIS 'loses face' over TOT 3G debacle
Bangkok Post: 3 Feb 2010
AIS 'loses face' over TOT debacle
Advanced Info Service has lost face because TOT failed to provide the country's largest mobile operator with data roaming services on its 3G network as agreed, says its chief executive.
Wichian Mektrakarn made the comments yesterday after he and vice-chairman Somprasong Boonyachai met with TOT executives to discuss their roaming agreements.
AIS had told its subscribers that they could use data roaming on TOT's 3G network from Monday, but the state enterprise did not provide the service.
Mr Wichian said AIS agreed to wait for direction on the matter from the National Telecommunications Commission's board, which will meet today.
AIS also said it would delay cutting voice roaming services with the TOT subsidiary Thai Mobile from Feb 8.
AIS had earlier said it would submit the notification on Monday. Mr Wichian said the threat would still be carried out if no progress was made on data roaming within the next seven days.
The company was still unable to assess the financial cost of data roaming not being launched. But Mr Wichian said AIS's image and credibility had been damaged by the lack of service.
AIS did not agree with TOT's decision to seek advice from the NTC as roaming agreements were standard services. The first international roaming agreement was signed in Europe in 1992, he said.
''Roaming is a normal agreement signed among local and international operators,'' he said. ''In practice, after a roaming agreement was signed, the operators just notified the NTC later.''
http://www.bangkokpost.com/business/telecom/32208/ais-loses-face-over-tot-debacle (http://www.bangkokpost.com/business/telecom/32208/ais-loses-face-over-tot-debacle)
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Thai govt minister pushes 3G auction
Bangkok Post: 5 Feb 2010
Sathit pushes 3G auction
A senior government minister is calling on the telecoms regulator to press ahead with an auction of third-generation mobile phone licences without waiting for the setting up of a new supervisory body.
PM's Office Minister Sathit Wongnongtoey yesterday said the National Telecommunications Commission (NTC) should move forward with the 3G licence auction without having to wait for the establishment of the National Broadcasting and Telecommunications Commission (NBTC).
Speaking at a seminar on the future of radio, television and telecommunications, Mr Sathit stressed the need to hold the 3G auction as soon as possible to allow the public greater access to telecommunications services.
The drawn-out 3G auction process was costing the country opportunities for national and economic development, he said.
Mr Sathit said the government believed the NTC should have the authority to auction 3G licences. He said efforts should be made to see if it has the legal authority to issue the licences.
The process of awarding the licences has been stalled over legal questions on whether the NTC has the legal authority to issue them.
Attorney-General Julasing Wasansing has warned that an NTC auction of the 3G mobile broadband licences would violate the constitution.
The charter states a new frequency allocation law must be in place and a new regulator - the NBTC - must be formed before frequencies can be allocated.
The constitution requires the setting up of the NBTC but the issue is still with parliament. The absence of the NBTC has led to the debate over the authority of the NTC, formed under the earlier 1997 constitution.
Mr Sathit said the government would make sure a bill on broadcast frequency allocations passed the lower house this month and he hoped it could be endorsed by the Senate by April.
The bill would set up the NBTC and its 11 board members. The NBTC will have sole authority in deciding who will be given radio, television and other frequencies now controlled mainly by the armed forces, MCOT and state agencies.
http://www.bangkokpost.com/news/local/32307/sathit-pushes-3g-auction (http://www.bangkokpost.com/news/local/32307/sathit-pushes-3g-auction)
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Free Thai 3G SIM cards up for grabs
Bangkok Post: 12 Feb 2010
Free 3G SIM cards up for grabs
365 Communication, one of the five companies providing 3G services in Bangkok for TOT Plc, will offer free 3G SIM cards to its first 200,000 customers to stimulate converged networking messaging demand.
The young company admits the strategy will cause a significant loss in the first one to two years, but Surin Ritteephamorn, the CEO and founder of 365 Communication, said TOT 3G has huge room to grow.
The churn rate of the local mobile phone market is as high as 30% per year, translating into 15 million mobile users changing their numbers per year, he said. "If we get only 1% of the churn users, we can simply survive."
TOT has 548 3G base stations in Bangkok, which were upgraded from 2G technology, with a capacity to serve 500,000 numbers.
The state telecom enterprise assigned five companies to operate its 3G service under a mobile virtual network operator (MVNO) business model. They are Samart I-Mobile, Loxley, IEC International, M Consultant Corporation and 365 Communication.
365 is offering free 3G SIM cards plus free data usage of 1.5 gigabyte per month for 200,000 customers under a "Freemium" (free-premium) marketing campaign.
"We expect to have 20,000 customers within this month and 200,000 [Freemium] customers by the end of this year," Mr Surin said, adding that target customers are senior year students, first jobbers, young executives and social networking communities.
Mr Surin said his company must shoulder all costs in the first two years to attract consumers, then can realise revenue after that.
To contain its loss, 365 is seeking partners in the industrial and financial sectors to co-market its 3G mobile broadband for mutual benefits, he said.
The company is now in talks with KTC and other Visa card issuers for possible interactive partnership deals.
Mr Surin said 365 had adapted its strategy from a one-way to a two-way marketing approach now that TOT's 3G nationwide expansion is being further delayed. For instance, the company will use the benefits and profits from partners to subsidise its service.
The planned co-operation between TOT and AIS, if it materialises, would have little impact on MVNO operators as the local industry is open, with a high churn rate, he added.
http://www.bangkokpost.com/business/telecom/32766/free-3g-sim-cards-up-for-grabs (http://www.bangkokpost.com/business/telecom/32766/free-3g-sim-cards-up-for-grabs)
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3G locations, prices, plans in Thailand
Bangkok Post: 31 Mar 2010
What to expect as 3G gains momentum across Thailand
Don Sambandaraksa looks into how the Kingdom will benefit, and which service providers will offer what
It has been four months now and most of the ToT's five partners have gone ahead and launched their 3G offerings commercially. Coverage is still patchy but a major network upgrade is due next month. So what can users expect, and which is the best 3G MVNO to go for right now?
A model promotes the 3G Sim card at last week’s Thailand Mobile Expo 2010 at the Queen Sirikit National Convention Center.
ToT launched its 3G network commercially on Dec 3 with 548 or 551 base stations around greater Bangkok, depending on which press release one reads. The network is capable of 7.2MBPS downstream and 2MBPS upstream, which will make sure every major shopping centre and office building in Bangkok gets coverage and ToT's 3G network in Chiang Mai and Pattaya will go online in April. Khon Kaen, Hua Hin and Phuket are scheduled to go live in May. Upcountry equipment will feature a maximum download speed of 14.4MBPS, double the speed in Bangkok with a compatible device.
All modern high-end phones from the past couple of years are 3G-compatible. With the proper software, they can be tethered to laptops and netbooks to get online. For instance, Nokia OVI Suite has (almost) one-touch access to use the phone to get the PC online. "Almost", as none of the phones and suites know of ToT 3G yet and configuration for the access point name (APN) has to be manual. ToT 3G needs the APN to be set as "internet".
ToT has launched on the standard 2100 frequency, not the oddball 1900 (North American) frequency it was using for GSM.
The problem with coverage is compounded by the high 2100 MHz frequency that does not penetrate buildings or mosquito meshes. Practical use is further exacerbated by the roaming arrangement with AIS. It is possible to roam on to AIS for most of the MVNOs (not 365 or i-Kool) to provide (expensive) voice and SMS coverage when out of range of 3G. However, there is no data roaming on AIS Edge/GPRS. This means that if allowed to roam, push mail - one of the most sought after features of today's smart phones - will not work and often spew out errors and warnings.
In practice, most phones will select a good AIS signal over an acceptable but low ToT 3G signal. Locking the phone to ToT Mobile or to UMTS 3G-only mode helps in that sense, but that means that the phone will be not be able to receive a call when out of 3G range. All in all, that means users still have to keep hold of their GSM Sims and phones for a while yet.
Some places in Bangkok have very good coverage and some parts have no signal at all. A second Sim card therefore makes a lot of sense, with coverage available in most business areas if you are willing to walk around and hunt for a good signal. Indoor coverage is very much hit and miss depending on your proximity to a base station and the buildings in the area.
ToT is marketing 3G and selling Sims both itself, at any ToT office, and through five Mobile Virtual Network Operators (MVNOs) - 365, i-Kool (Loxley), i-Mobile 3GX (Samart), IEC and M-Conzult. Most offer both prepaid and post-paid plans. Most post-paid plans are similar to ToT's offering but there is quite a bit of variation on pre-paid plans.
ToT offers S, M, L and XL packages on post-paid contracts starting with 1GB for 199 baht, 2.5GB for 399; 4GB for 599 and 6GB for 799 baht, respectively. Usage in excess of the bundled packages is 0.20 baht per MB or 200 baht a GB. Worryingly, though, the fine print in the paperwork that comes with the Sim says that excess usage outside of the bundle is charged at a staggering 3 baht per MB or 3,072 baht a GB, but the call centre assures users they can ignore it as it is just the maximum price they can charge in ToT's agreement with the NTC. Still, given the fact that i-Kool offers cheaper pre-paid data negates the point of having a post-paid contract in the first place.
Most operators have divided the market into two - a bundle with voice, video calls, SMS and MMS, and a data-only plan. The price per MB of these bundles are higher than the best data-only plans. For instance, 3GX offers calls at 1 baht a minute, video-calls at 1.50 baht a minute, SMSes at 2 baht each. As for data, a 500-baht 3GX top-up will give you 1GB of data in addition to the 500 baht balance for calls and SMSes (equivalent to 200 baht a GB), but any excess over the 1GB is charged at 0.50 baht per megabyte (equivalent to 500 baht a GB).
For large data users, 365 offers 1GB (or 30 days) for 200 baht, 3GX 2,000MB or 60 days for 500 baht, and i-Kool offer the best value of all the 3G operators (for now) at 5GB (5,120MB) for 500 baht (or 30 days, whichever comes first). 365 has promised an unmetered data plan, but that has not materialised yet.
It is interesting to see how some define a gigabyte as 1,000MB, while i-Kool seems to have a serious case of indecision and defines it as 1,024MB, even though they define a megabyte as 1,000KB rather than 1,024KB. It is generally accepted that 1GB should be 1,048,576KB and not 1,000,000, and never the hybrid 1,024,000.
Topping up is different depending on the MVNO. i-Kool top up cards are quite hard to come by as Loxley has only a limited dealer network through its Sony-Ericsson brand shops, but they take credit cards and PaySbuy e-Money online with no charge. After payment, an SMS is sent to any phone (not necessarily an i-Kool phone) and via email. Then that code has to be entered on the 3G phone for the top-up to be activated. This means that if it is in a dongle with no voice call function, the Sim has to be removed and put into a phone for it to be topped up. The same is true for checking usage balance. It is only possible by dialling a code from the phone itself - again requiring it to be removed from a dongle to check the balance. It is also confusing, as i-Kool has different balance accounts for data that came with the Sim and for data that has been topped up after purchase.
365 is a bit better in the respect that it allows top-up directly to the Sim from its online portal, but it's also a bit more clumsy in that payment is only accepted in the form of a bank transfer to its Kasikorn Bank or Bank of Ayuthaya account. After making the transfer, the user has to log in to the portal again, tell 365 of the exact time of the transfer and then wait for someone to manually verify the payment and top up your account for you. This manual time-based matching approach probably works for now but when eventually thousands of people are trying to top up each day looks a recipe for chaos.
Other MVNOs vary and one should check carefully before committing to a purchase. Suffice to say that none offer the ease and simplicity of mainstream GSM operators when it comes to topping up.
5GB is more than enough for phone use and, to all intents and purposes, it is as good as unlimited. However, connect it to a bandwidth-hungry PC and 5GB suddenly seems very little. 365 says most men use 25GB of data a month and women 35GB if put on unmetered plans on a PC or notebook.
As a replacement for home broadband, 3G has great potential. It is possible to buy a special router that accepts a USB dongle for around 3,000 baht that can share the 3G connection via a wireless LAN. ToT has obviously made sure that the gateway is not a major bottleneck with speeds of up to 6MBPS down not unheard of with a good, steady signal on a 7.2MBPS device. For places without ADSL on the outskirts of Bangkok, it is perhaps the only channel for true Broadband Internet access. Many users in Bangkok are now beginning to use 3G as their "premium" connection when speed is needed or their copper connection has a problem.
This is probably the reverse use case that most countries have found themselves in, with copper being slow and used for downloading large files and 3G being used for premium connections. Obviously this will have major implications as to how the market develops.
The possibility of paying 1,000 to 1,500 baht a month for 10 to 15GB a month of fast, but not unmetered, broadband will appeal to many. But that same connection can be taken anywhere in Bangkok too and soon other major cities in the country. No more searching for True Wi-Fi or Starbucks; a 3G user can sit down anywhere (with a signal), plug in and go online with all the speed they are used to at home, and more. With more and more thin and light notebooks and netbooks coming with built-in 3G, this market is probably set to be the biggest in terms of bandwidth usage. After all, who wants to use m.facebook. com on a phone when they can have the full Facebook experience on the large screen? A busy user who does not spend too much time at home downloading movie files now has the choice of using 3G instead of home ADSL.
For mobile broadband on the phone, the experience is marred by (admittedly improving) coverage issues. TV channels on Windows Mobile are smooth and responsive, better than many home Wi-Fi ADSL connections, even. It also opens up the possibility of uploading pictures and videos almost instantly to social networking sites and even for broadcasting video over sites such as QIK or Bambuser. Unless the signal is very strong, streaming video quality is still limited in practice though to QVGA, but at the right place with a good signal, a clear VGA picture with a rich sound-track can be broadcast. Only the most recent 3G phones have 2MBPS HSUPA (high speed uplink) and most phones from a few years ago are limited to 3.6MBPS down and 384KBPS up.
Ironically, using a high-bandwidth signal might make video very clear on a tiny screen, but more data means more to process and tax the phone's CPU and thus greatly reduces battery life. Manually limiting the bandwidth in Windows Media Player, for instance, to 100KBPS is hardly noticeable on the small screen but helps extend battery life greatly.
Using low-bandwidth mobile versions of sites such as Twitter or Facebook is much more fluid over 3G, not so much because of the bandwidth but the reduced latency and general snappiness of the network.
3G also makes practical the use of the Skyfire browser that allows full Flash video to be transcoded and shown on most modern smart phones. Without 3G, sites can be transcoded and sent to the phone, but not video, at least not smoothly enough to be of any real-world use.
On high resolution Android phones such as the Nexus One, 3G means seamless access to Picasa web albums to show of photos as if they were stored locally on the phone, complete with the 3D "floating in the air" feature of Android 2.1.
Skype video calls from a compatible smart phone via Fring is a possibility, as is using Skype for free calls to other Skype users. Skype now has an official client for Nokia S60 3rd Edition (non-touchscreen), iPhone (needs a jailbreak to allow VOIP calls over 3G), Maemo (Nokia N900) and Windows Mobile. None of the tested ToT MVNOs block Skype. Ironically, with a Skypeout subscription and a suitable phone, it is now possible to make unlimited calls to Thailand for US$5.95 (195 baht) a month, including calls to mobiles.
How long this will continue before someone at ToT decides to block it will be interesting.
In the UK, none of the major networks allow VoIP in their contract but most seem to turn a blind eye to it, except for excessive use. The smallest operator, Hutchinson 3, however, encourages Skype, leveraging it as a disruptive force to gain market share from the big players.
That said, most of the latest 3G phones now do away with the front-facing video-call camera. None of the recent smart phones from HTC have one, for instance. In the west, video-calling has failed as it is too personally intrusive unless it is for family or for executive meetings. For many, once they have made one call, that is enough and it is then time to move on to the greater Internet. How it will fare in Thailand is still too early to say.
Bangkok has 3G now. It is far from perfect and coverage is patchy, but finally the smart phones can be let loose and enjoy their birthright. Until coverage improves, it will be the nomadic user on a big screen laptop or netbook that has the most to gain from 3G, but at the very reasonable prices for prepaid Sim cards, there is no reason not to go out and try one out. 3G has been a long time coming and now the time has arrived to see what all the fuss is about first-hand.
Can business depend on 3G? Not yet, but they can try. Can social media users take advantage of 3G to share pictures and videos with the world? Most definitely.
The next stage of Thailand's 3G evolution will not happen until the NTC finally gets around to issuing 3G licenses and the major players get into the game. Most analysts say that ToT will never be able to fund a comprehensive nationwide network the way AIS or Dtac can. In the meantime, we may get a sideshow when the oddball frequency 3G networks get launched. Dtac is waiting for approval from its concession holder, CAT Telecom, to roll out 1,000 base stations on 850MHz 3G around Bangkok. 850MHz 3G phones are few and far between (apart from the iPhone). AIS, if it can sort out its legacy network and spectrum spaghetti, is in a much better position from a device point of view to roll out 900MHz 3G as all new phones on the Thai market support 900 and 2100.
The real impact of 3G will not be felt until coverage is extended upcountry. There, 3G will be the only way for many to access broadband and will bring the Internet to millions of users - not so much on their smart phone, but on their home PC.
The macroeconomic benefits of affordable, broadband access will be great for the Thai economy, as will the social changes from being able to access information and work remotely from remote villages in the middle of nowhere.
http://www.bangkokpost.com/tech/technews/35342/what-to-expect-as-3g-gains-momentum-across-thailand (http://www.bangkokpost.com/tech/technews/35342/what-to-expect-as-3g-gains-momentum-across-thailand)
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Thai tourist areas targeted for 3G
Bangkok Post: 13 Apr 2010
Tourist destinations on TOT's 3G map
TOT Plc is seeking approval for a 3G network in tourist destination provinces to expand its mobile broadband service while it awaits cabinet approval of a more ambitious 20-billion-baht 3G venture.
The state telecom enterprise is proposing to have a consortium of Ericsson, Nokia and Siemens build the network, which TOT would then rent. The plan would need approval from the Information and Communications Technology (ICT) Ministry.
A source familiar with the proposal said TOT wanted to increase its capacity to meet increasing demand for 3G in Chiang Mai and Phuket as well as Bangkok.
He said the three-company consortium was the original contracted party of Thai Mobile in the construction of its network.
Thai Mobile was a joint venture of TOT and CAT to provide mobile phone services on the 1900 MHz band but it is now owned outright by TOT.
It has only about 50,000 customers in a market of 64 million but its bandwidth is extremely valuable.
The source said TOT would also ask the consortium to upgrade the existing 1900 MHz network comprising 548 base stations to 3G, which would allow it to expand 3G services immediately without having to await cabinet approval of the nationwide network.
The source added that if the plan went ahead, TOT could consider leasing the consortium's 3G network later or buying it out.
TOT launched 3G service in early December in Bangkok but both the service and the customer base have been limited so far.
http://www.bangkokpost.com/business/telecom/35999/tourist-destinations-on-tot-3g-map (http://www.bangkokpost.com/business/telecom/35999/tourist-destinations-on-tot-3g-map)
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Thai govt looks to bypass 3G for LTE
Bangkok Post: 7 Jun 2010
TELECOMMUNICATIONS
Mixed response to 3.9G among operators
The country's largest mobile operator has given a mixed response to the government's proposal for Thailand to adopt 3.9G wireless broadband technology, after five years of failure to start third-generation (3G) services.
Advanced Info Service said 3.9G was a good idea but reallocation of spectrum, as well as the readiness of equipment and handset makers, must be taken into account.
AIS chief executive Wichian Mektrakarn said the National Telecommunications Commission (NTC) had shown a progressive vision by proposing to move straight to 3.9G and bypass the stillborn 3G. However, he said limited bandwidth resources may make it difficult to adopt the new technology, which offers speeds 20 times faster than 3G.
The NTC last month announced a plan to skip issuing 3G licences and instead auction three 3.9G licences by September. Commercial services could begin by the end of this year in the best case.
While 3G services are available in Laos and Cambodia, only limited trial services are available in Thailand to this day. Past attempts by the NTC to auction 3G licences have failed because of frequent changes in government and disagreements over the regulator's legal authority.
The new 3.9G licences would be for 15 Megahertz of bandwidth and would be valid for 15 years. The NTC previously planned to auction four 3G licences: three for 10MHz and one for 15MHz.
Bid prices are expected to start at 10 billion baht per licence and could reach 12.5 billion.
An NTC board member said that the auction would use an SMR (simultaneous multiple-round) method meaning that all licences would be open for bids simultaneously but the number awarded would be based on the number of bidders passing pre-qualification tests.
For example, if three bidders passed the pre-qualification stage, only two licences would be open for auction, and if two bidders passed the test, only one licence would be available. As long as there were more bidders than licences, there would be price competition, he said.
3.9G technology is more advanced than 3G but based on the same 2.1 GHz frequencies. It allows 20 times faster data transmission, 100 Mbps for downlink peak rates and 50 Mbps for uplink, using the Long Term Evolution (LTE) standard.
Operators can upgrade their existing 3G on GSM or high-speed downlink packet access networks to 3.9G LTE, without having to build new base stations.
But Mr Wichian said 15 MHz would be insufficient for 3.9G services. "At least 20 MHz of carrier bandwidths are needed for each operator to support commercial data-focused traffic in reality."
AIS was ready financially to move to 3.9G, he said, but a lack of compatible equipment and handsets would be a barrier.
Nattawat Woranopakul, country manager of HTC Thailand, said that only smartphones, accounting for just 10% of the mobile market currently, could be used for 3.9G.
Data transmission speeds of current smartphone models in Thailand are mainly in the range of 3.6 to 7.2 Mbps, the minimum for 3.9G. Some HTC models offer speeds up to 14.4 Mbps.
He said new chipsets might have to be made for 3.9G handsets, which could be quite expensive initially.
http://www.bangkokpost.com/business/telecom/38325/mixed-response-to-3-9g-among-operators (http://www.bangkokpost.com/business/telecom/38325/mixed-response-to-3-9g-among-operators)
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step by step.
first get to the point you can provide stable high speed internet. in my village seems like it all depand on the wind. hahaha
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Thai 3G auction set for late September
The Nation: 29 Jul 2010
3G license auction set for late September
By USANEE MONGKOLPORN
THE NATION
Published on July 29, 2010
The National Telecommunications Commission will call the auction of licences for the 3G-2.1-gigahertz spectrum in the last week of September, according to the time frame approved yesterday by the NTC board.
NTC chairman Prasit Prapinmongkolkarn confirmed the time frame.
The NTC will auction three 15-year licences for third-generation (3G) mobile telecommunication service at the starting bid price of Bt12.8 billion each. Some NTC members are on an overseas roadshow to woo foreign telecom operators to join the bidding. They have already met with China Mobile, China Unicom, and SK Telecom.
The NTC has moved ahead with the licensing plan despite opposition to of some aspects of it.
Some private telecom operators have opposed the auction method, while others want the NTC to remove Clause 9.4 of the plan, regarding the return of 2G (second-generation) spectra by licence winners.
The clause requires incumbent telecom operators who acquire one of the new licences to return existing spectra to the concession owners TOT or CAT Telecom for reallocation. The reasoning behind the clause is that operators should not own too many spectra.
Some telecom operators, however, have expressed uncertainty that the two state enterprises will reassign spectra to them so they can continue providing 2G service.
The NTC has affirmed that TOT and CAT are obligated to provide current concession holders spectra to continue 2G service.
Meanwhile, the state joint committee developing the concession termination plan will meet with the NTC tomorrow to discuss the scheme. It will also meet with all private concession holders next week on the same matter.
The Information and Communications Technology Ministry and the Finance Ministry set up the joint committee to study three main aspects surrounding the termination plan, namely legal, technical, and financial.
A source close to the committee said the plan is legally feasible but declined to elaborate.
The concession-termination plan is part an effort by the Finance Ministry to put all mobile-phone operators under a single set of NTC regulations. Currently they operate under overlapping state concession and NTC regulations.
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September 3G auction confirmed
Published: 31/07/2010 at 12:34 AM
Online news: Telecommunications
The long-delayed auction for 3G mobile broadband licences is scheduled for Sept 22-28, according to an official announcement published late Thursday in the Royal Gazette.
Bidders must submit proposals to the National Telecommunications Commission (NTC) by Aug 30 for screening. Those that pass will be invited to take part in the auctions.
Col Natee Sukonrat, an NTC member, acknowledged that the process could be disrupted if opponents seek a court order to put it on hold.
Attempts to bring 3G services to Thailand have been held up for nearly five years because of frequent changes in government and also because of questions about the NTC's legal authority to award licences.
The NTC aims to award three licences with a starting bid price of 12.8 billion baht each.
The regulator will use a so-called N-1 approach, meaning that if there are no more than three bidders, the number of licences would be equal to the number of bidders minus one. It says this approach will ensure higher competition and potentially raise prices.
Questions remain, however, about the NTC's legal authority, since the law to create a new super-regulator, the National Broadcasting and Telecommunications Commission (NBTC), has not received final approval.
As a result, a director of TOT Plc warned earlier, the Radio Frequency Allocation Act 2000 and the Telecom Business Law remain in force and limit what the NTC can do.
The first act separates telecoms under the NTC and broadcasting under the National Broadcasting Commission (NBC). However, years of repeated attempts to create the NBC collapsed amid political wrangling.
The Telecom Business Law was an organic law under the 1997 Constitution but it was later rescinded under the 2007 Constitution, which calls for the formation of the NBTC.
Consequently, the TOT executive said, any activity that the Frequency Allocation Act defines as the joint responsibility of the NTC and the non-existent NBC cannot be undertaken by the NTC alone.
He warned that if the NTC awarded 3G licences under existing rules, private mobile operators such as AIS, DTAC and True Move could establish new companies to bid for licences. They would then migrate their customers to new 3G networks so that they would no longer have to pay concession fees, which would severely hurt TOT and its state sibling, CAT Telecom.
Advanced Info Service, the country's largest operator, is already preparing to jump onto the 3G mobile virtual network operator (MVNO) bandwagon in partnership with TOT, with a planned commercial launch by September.
The strategic move is intended to reduce the risk of further delays in 3G services due to existing legal wrangles, said CEO Wichian Mektrakarn.
Currently, five MVNO companies provide 3G services under contracts with TOT. The state enterprise has only 548 3G base stations in Bangkok, with a capacity to serve 500,000 numbers.
Mr Wichian said AIS, through a new wholly owned subsidiary Advanced Mobile Broadband, plans to initially spend 5 million baht on setting up its MVNO service within 60 days.
The company has also set up a wholly owned subsidiary, Mimo Technology Co, to handle the 3G content business and mobile software platforms. Another new subsidiary, Advanced Wireless Network, will bid for a 3G licence and operate the service.
Mr Wichian said AIS was in talks with TOT on a quota of MVNO numbers and tariff costs. Details including co-marketing plans, the number of customers and amount of data roaming, and service conditions would be settled next month.
"Given our nationwide distribution networks and after-sales service outlets, backup systems and possible roaming network agreement with TOT in the future, we have several advantages over the other MVNO companies," he said.
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NTC stands by foreign curb effort
AIS, DTAC worry about 3G bids
Published: 19/08/2010 at 12:00 AM
Bangkok Post: Newspaper section: Business
The National Telecommunications Commission (NTC) yesterday defended its efforts to limit foreign participation in the country's telecommunications sector, arguing that the rules do not violate global trade commitments.
An NTC draft regulation aimed at preventing "foreign dominance" in the telecom sector would place curbs on shareholdings and management positions held by foreign nationals, and would apply to existing operators as well as operators of new third-generation mobile licences scheduled to be auctioned late next month.
NTC commissioner Sudharm Yoonaidharm dismissed complaints filed by the European Union suggesting that the draft violated Thailand's commitments to the General Agreement on Trade in Services (GATS) under the World Trade Organisation.
Mr Sudharm said Thailand was not bound to the Government Procurement Agreement under the WTO, where signatories commit to fairness, non-discrimination and transparency in government procurement.
The rules do not concern public procurement, he said, but instead involved private competition for 3G spectrum for commercial services, he said.
The EU recently submitted a letter to the NTC and the Commerce, Finance and Information and Communications Technology (ICT) ministries expressing concern about the rule. The EU said the rule could restrict rights of foreign investors in setting policy, engaging in management and operations, and possibly represent a violation of GATS.
Anuparb Thiralarp, a telecommunications expert, said companies could seek legal action in the Administrative Court or the WTO itself, arguing that the rule violated the principles of most-favoured nation status and national treatment under GATS.
Most-favoured nation status is a key concept in global trade, where countries offer equal trade advantages to all countries offered the same status. National treatment binds countries to offering similar treatment to local and foreign nationals, or between locally produced and foreign goods.
One telecom executive said that both Advanced Info Service and DTAC, the country's two largest mobile operators, may file a court injunction against the NTC prior to submitting their 3G bids. AIS's major shareholders include Singapore's Temasek Holdings and Singapore Telecom, while DTAC is controlled by Norway's Telenor.
Eight companies, including AIS and DTAC, have purchased bid documents for the 3G licence auction scheduled to be held from Sept 28-29. Other potential bidders include True Corp, Samart and Loxley.
Particularly contentious is a suggestion that the nationality of a company's senior management should be considered in the 3G auction, an issue that could affect a number of bidders, including AIS and DTAC.
Mr Sudharm explained that the rule did not explicitly prohibit foreigners from serving as management executives. The NTC will allow foreign nationals to serve in management positions if justified by the companies.
"The EU misunderstood the details of the rule," he said. "The rule does not violate GATS and Thailand is not a member of the Government Procurement Agreement."
The NTC plans a public hearing on the foreign dominance draft tomorrow.
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Telecom trade watched
Focus on firms not entering 3G bids
Published: 31/08/2010 at 09:14 PM
Bangkok Post: Online news: Telecommunications
The Securities and Exchange Commission is looking into the share price movements of some listed telecom companies for evidence of speculation ahead of this month's 3G wireless broadband licence auction.
The prices of the companies in question rose in a range of 17% to 60% in August but fell sharply yesterday after some of them failed to submit bid documents by Monday's deadline, said an SEC official who declined to be named.
Eighteen companies picked up bidding documents from the National Telecommunications Commission (NTC) from Aug 1-29 but only three submitted formal bids on Monday.
As expected, they were the three mobile market leaders: Advanced Info Service, DTAC and True Move. Each submitted bid documents, a letter of intent, a 500,000-baht processing fee, and a deposit of 1.28 billion baht.
Also submitting bid documents was an NGV equipment importer and assembler, Win Win NGV, owned by the children of a senator who strongly opposed the 3G auction, claiming the starting price was too low. However, it failed to produced the fee, letter of intent and cheque deposit and was disqualified.
Other listed telecom businesses including Samart I Mobile, Loxley and Jasmine International did not submit bid documents. Some notified the SET that they saw the 3G business as high-risk.
The SEC executive said Loxley was summoned to clarify its participation in the bid.
Industry and market executives conceded that investor speculation about which telecom companies might bid was probably inevitable ahead of Monday's deadline.
Suranand Wongwittayakamjorn, an NTC commissioner, admitted it would be very difficult to prevent share speculation as the 3G auction was an open-bid platform.
Over the past month, the share price of Jasmine International surged by 64%, Loxley shares rose 40% and Samart I-Mobile increased by 17%.
Loxley shares fell 11% yesterday at the end of a volatile month, during which their price ranged from 2.08 to 3.04 baht, the peak reached on Monday.
Jasmine shares (JAS) lost 7% to 1.33 baht, also in heavy trade worth 558.1 million baht.
Shares of the three mobile leaders all fell yesterday as investors weighed the chances of each one in the Sept 20 auction, when only two licences will be available. A third licence would be auctioned later.
True Corp shares fell 9.6% to 6.60 baht in heavy trade worth 981 million, AIS shares (ADVANC) fell 0.75 baht to 92.25, while DTAC was off 2.25 baht to 46.50 in heavy trade worth 1.24 billion baht.
Suroj Lamsam, executive vice-president of Loxley, said his company had been genuinely interested in seeking a 3G licence, and there had been no intention of share speculation.
He said Loxley had been unable to conclude talks with a prospective partner, an Asian-based telecom firm, because of concern about an NTC rule that would curb "foreign dominance" in the business.
As well, he said, the company considered the deposit of 1.28 billion baht - 10% of the starting bid price - too high because the NTC could not guarantee that it would return the money if the 3G auction drags on.
The timeframe for submitting bid applications was also very short given the project value. "All these factors made Loxley fail to meet the NTC deadline," he said.
However, Mr Suroj said Loxley was still in talks with prospective partners for a joint venture to bid for a 3G licence in the second round if the outlook was good.
Samart I-Mobile, meanwhile, said it decided not to bid and to focus instead on strengthening its existing 3G mobile virtual network operator (MVNO) service for TOT Plc.
Jasmine International and its subsidiary Acumen declined to elaborate on why they did not bid.
http://bangkokpost.com/business/telecom/193935/telecom-trade-watched (http://bangkokpost.com/business/telecom/193935/telecom-trade-watched)
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ICT Minister seeks foreign 3G investors
Bangkok Post: 5 Sep 2010
ICT to seek cabinet approval for foreign firms to co-invest with Thais on 3G network system in Thailand
วันอาทิตย์ ที่ 05 ก.ย. 2553
BANGKOK, Sept 5 - Minister of Information and Communication Technology Chuti Krairiksh said he had ordered a revision on the planned bidding to launch the innovative 3G network services to allow Thai investors to co-invest with foreign firms.
Mr Chuti said he had ordered TOT Public Co., Ltd. to review the planned bidding for 3G network services in the country valued at Bt19 billion to allow local investors to co-invest with foreign firms in an attempt to encourage Thais to gain wider knowledge and grow in building telecommunication network systems.
Previously, only foreign firms in Thailand including two from China and another three from Europe, including Ericson, were allowed to enter the bidding for the scheme.
The planned revision for bidding will be presented for Cabinet consideration, probably on Tuesday, Mr Chuti said. TOT plans to build about 5,500 base stations for 3G network services so that services could be offered nationwide.
Also, it plans to discuss with Advanced Info Service (AIS) about using its already existing stations throughout Thailand.
A government concession given to AIS will expire in five years and it must transfer its assets to TOT.
Realising that it is unnecessary to invest heavily on constructing the stations, the TOT board feels that the company could save money if stations could be used jointly with the AIS system. (MCOT online news)
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3G hopes face new legal hurdle
Union wants CAT to ask court to halt licence bid
Published: 9/09/2010 at 12:00 AM
Bangkok Post: Newspaper section: News
Thailand's hopes for third generation mobile phone services face another potential legal obstacle after CAT Telecom's labour union said it will pressure the company to file a lawsuit with the Administrative Court to stop the auction of 3G licences on Sept 20.
(http://bangkokpost.com/media/content/20100909/179597.jpg)
The court yesterday dismissed a lawsuit by the union to stall the process on the grounds that the union was not directly damaged and therefore did not have the right to file the case.
The union claimed in its lawsuit that the National Telecommunications Commission (NTC) did not have the authority to organise the auction. It sought provisional legal protection for CAT Telecom while its petition was being heard in court.
The Administrative Court said in its ruling yesterday the CAT union was not directly damaged by the auction. The union was merely a juristic body that was set up to protect the interests of employees, not of the company.
Both the private mobile phone operators and the national telecom regulator expressed relief after learning of the court's ruling.
See also: 3G Expo proceeds as CAT opts to sit out
The 3G bid is scheduled to kick off on Sept 20 with three market leaders _ Advanced Info, Total Access Communications and True Move _ taking part.
"The ruling means that the auction can now go on without interruption," said an executive of a telecom operator.
However, CAT union leader Sukhum Chuenmana said CAT Telecom could still exercise its legal right as a directly damaged party even though the Administrative Court had dismissed the union's case.
The union will pressure the company's board to file a lawsuit. It will also discuss whether it should petition the Ombudsman's Office to ask the Constitution Court to rule whether NTC had the legal authority to organise the 3G auction.
The union believed the authority belonged to the National Broadcasting and Telecommunications Commission (NBTC), which is due to be formed when the Frequency Allocation bill is passed into law.
It would also ask the board to seek provisional legal protection from the court if the lawsuit was accepted.
Both TOT Plc and CAT Telecom stand to be hit hard if 3G mobile phone licences are issued. Their core revenue comes from 2G concession holders now competing for the 3G licences.
If the court agrees to the request to grant legal protection for CAT, the Sept20 action would be put on hold.
Both the TOT and CAT unions strongly oppose the 3G auction, reasoning their organisations could face a financial crisis if the winning bidders shift customers to the new 3G system.
TOT and CAT are banned from entering the contest under the NTC's 3G auction rules.
TOT has scheduled a meeting for tomorrow to discuss its business plan but its president, Varut Suvakorn, said the board had yet to decide on whether to file the lawsuit.
NTC commissioner Natee Sukolrat said the CAT union's move was just another tactic to derail the auction.
The NTC would go ahead with the bid, Col Natee said.
NTC vice secretary Prasert Apipunya welcomed the court ruling saying it helped to clear up legal doubts about the auction process as many people had tried to stop the bidding by suing the NTC. Most suits have have so far been dismissed by the courts.
The only lawsuit still pending in court was filed by Win Win NGV. The company was disqualified for failing to produce a letter of intent, bank guarantees and a 1.28 billion baht cash deposit required to back its application for a 3G licence.
Supha Piyajitti, State Enterprise Policy Office director, said if the TOT and CAT boards brought their cases to the Administrative Court, the move would set a standard for state enterprises to bring unresolved disputes for rulings.
He said the dispute over the 2G spectrum raged on. The NTC wanted to reclaim the 2G phone frequencies but CAT had argued it should retain the frequencies if its 2G concession was terminated.
The Finance Ministry is proposing the replacement of the 2G mobile concessions CAT and TOT have issued to private operators with new licences being valid for 15 years _ the same period as those to be issued under 3G.
It wants the NTC and the government to move in parallel on 3G licensing and concession conversion to achieve their goals at the same time this month when the NTC auctions the 3G licences.
Presently, three mobile operators are providing 2G cellular service under the concessions of TOT and CAT. The concessions are due to expire over the next three to eight years.
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Court plans to appoint judge panel for 3G ruling
Published: 16/09/2010 at 12:00 AM
Bangkok Post: Newspaper section: News
The Administrative Court has finished hearing a case filed by CAT Telecom against the National Telecommunications Commission seeking temporary suspension of the 3G licence auction scheduled to begin next Monday.
The court did not hand down a ruling but will appoint a panel of judges to wrap up all inquiries before making a final judgement.
The judgement will be notified to each party by today or tomorrow.
Yesterday's hearing lasted more than two hours. CAT executives led by president Jirayuth Roongsrithong and the NTC testified separately in a closed-door session.
Before entering the chamber, Mr Jirayuth said CAT had no intention of delaying 3G technology development because it is also a supporter of the 3G trial services of DTAC and True Move.
"But we want clarity on the NTC's authority. We deem it a defiance of the constitution if it holds the auction for the 3G spectrum, which should be under the sole authority of the National Broadcasting and Telecommunications Commission," he said.
Mr Jirayuth said CAT would suffer a loss of revenue if there was no ruling by the court on the suspension of the auction.
It would also be unfair to future frequency allocations.
He said if the NTC went ahead with the auction, damages would be inflicted on investors who had paid licence fees and other expenses.
CAT is contemplating filing the case with the Constitution Court if its attempt at the Administrative Court fails.
In the defence session, two NTC commissioners, Col Natee Sukolrat and Sudharm Yoonaidharm, explained the auction procedure in detail. They insisted everything was done in compliance with laws and regulations.
After hearing testimony from both parties, the court said the ruling would be notified to them soon.
Meanwhile, TOT said it would file a similar case with the Administrative Court tomorrow seeking temporary suspension of the auction.
TOT board member Djitt Laowattana said the board had given its management freedom to bring the case to court.
Yesterday the Administrative Court rejected an earlier petition that TOT filed against the NTC for issuing an announcement on interconnection deals with DTAC and for imposing a fine of 60,000 baht a day for a violation of its order to interconnect their networks.
The court said the NTC's announcement was in conformity with the law and did not violate the constitution.
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CAT wins fight to stall Thai 3G auction
Bangkok Post: 17 Sep 2010
CAT wins fight to kill 3G auction
Court rules NTC has no right to offer licences
Thailand's effort to join the 3G communications era was crippled Thursday when a court ruled against an auction for licences that was to be held on Monday.
In a late evening decision, the Administrative Court ruled in favour of CAT Telecom's call for an injunction to suspend bids for 3G licences at an auction to be held by the National Telecommunications Commission (NTC) in Pran Buri.
The court backed arguments by CAT Telecom executives, led by president Jirayuth Roongsrithong, that the NTC has no authority to hold the auction.
The NTC said it would appeal against the ruling tomorrow. But executives admitted the 3G auction will have to be cancelled if the court's decision is not reversed in time.
"If the court accepts our appeal, we should be able to carry on with the auction. If not, the NTC will immediately cancel it," said Col Natee Sukonrat, NTC commissioner and head of the 3G auction project.
Mr Jirayuth said he did not think the NTC can hold the 3G auction as it will have to wait for the court to consider its appeal.
There was also the question of Thailand's other major telecommunications provider, TOT, pressing ahead with a similar case against the NTC after seeing Thursday's result.
The Administrative Court ruled that the licensing of the 3G spectrum must wait until the National Broadcasting and Telecommunications Commission (NBTC) is formed.
The establishment of the NBTC is stipulated in the frequency allocation bill, which is pending final approval by the House of Representatives.
The bill was approved by the House in March. It was later endorsed by the Senate but with several amendments, including an increase in the number of NBTC board members from 11 to 15.
The bill has to be further scrutinised by the joint committee of the House and Senate. It is expected to be returned to the House over the next few months for final approval.
The court stated the NTC's attempt at 3G regulation through the auctioning of the licences could pose a problem for the NBTC's operations.
One industry source said: "This is going to be bigger than Map Ta Phut [in terms of investor confidence]. Everyone was waiting for this auction. Everyone was preparing to invest. Now what will happen?"
AIS chief Wichian Mektrakarn said the key issue now is whether the NTC will be able to appeal against the injunction in time.
"This should not affect the country's image because the NTC is bound to file an appeal. The private sector only has to follow the NTC's policy," Mr Wichian said.
Tore Johnsen, CEO of DTAC, said he was "disappointed by the court ruling as Thailand needs 3G now to increase the country's competitiveness". He said DTAC had fully supported 3G and been well prepared to get a licence.
Suphachai Chearavanont, CEO of True Corp, said he felt disappointed by the injunction. "I only hope that the appeal will allow the process to move forward. If the auction is put off indefinitely, it means the country will be going backwards."
According to Mr Supachai, the decision will significantly set back the industry's efforts to develop and encourage a new level playing field. It will also undermine the country's infrastructural competitiveness.
He acknowledged that True Move would lose the opportunity to compete with rivals in a fairer competition under a new licensing regime.
Mr Suphachai also denied speculation that True Corp was behind the attempt to disrupt the 3G auction.
"We are the most disappointed firm to hear the ruling. We are ready and destined to win a 3G licence," he said.
Thana Thienachariya, DTAC's chief strategy and corporate affairs officer, also expressed deep sorrow for the telecommunications industry as he felt the sector is now "helpless and with no future".
ICT Minister Juti Krairiksh said he was confident a 3G auction would take place within this year. "The NTC will have to file an appeal to the Administrative Court. I believe the process will not take too long. There is no doubt the NTC will solve this problem promptly and carry on with the mission. It's still the government's policy to push for 3G development," Mr Juti said.
http://www.bangkokpost.com/news/local/196675/cat-wins-fight-to-kill-3g-auction (http://www.bangkokpost.com/news/local/196675/cat-wins-fight-to-kill-3g-auction)
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TOT files case against NTC
* Published: 17/09/2010 at 12:27 PM
* Online news: Breakingnews
The TOT Plc on Friday filed a lawsuit with the Central Administrative Court calling for an injunction to suspend a 3G auction called by the National Telecommunications Commission (NTC) in Prachuap Khiri Khan's Pran Buri district on Monday.
TOT said in the lawsuit, which is similar to the one filed by CAT Telecom, that NTC is not authorised to hold the 3G auction.
It took the same legal action against the NTC after the Central Administrative Court on Thursday ruled in favour of CAT Telecom's call for an injunction to suspend the 3G auction.
The NTC board, meanwhile, resolved in its meeting on Friday morning to appeal against the injunction in the afternoon.
Col Natee Sukolrat, an NTC board member, said the court will be asked to hold emergency examination of the appeal.
http://www.bangkokpost.com/breakingnews/196777/tot-files-case-against-ntc (http://www.bangkokpost.com/breakingnews/196777/tot-files-case-against-ntc)
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CAT forges ahead after stalling 3G
The Nation: 25 Sep 2010
Cat Telecom forges ahead in wake of 3G ruling
By Usanee Mongkolpron
The Nation
Published on September 25, 2010
CAT Telecom will develop new businesses quickly to boost revenue, seizing the opportunity after the 3G2.1GHz spectrum licence auction has been put on hold by order of the Supreme Administrative Court, chief executive officer Jirayuth Rungsrithong said yesterday.
CAT will develop its fibre optic broadband service project worth Bt6 billion and expand its code division multiple access (CDMA) 2000 1x cellular network in 51 provinces at a cost of Bt3.8 billion.
It also plans to acquire CDMA networks in 25 provinces from Hong Kong telecom operator Hutchison Telecom and its related businesses in Thailand for a total budget of Bt7.5 billion.
The Cabinet in April gave the nod to the CAT takeover plan on a budget of Bt7.5 billion, of which Bt7.2 billion is for the acquisition and the rest is for takeover procedures.
CAT wants to merge the CDMA networks in 25 provinces with its own network in 51 provinces.
Jirayuth said Hutchison Telecom had written off the CDMA network but it still has higher bargaining power than CAT, so the deal depends on Hutchison Telecom's decision to sell or not to sell the network to CAT.
Hutchison Telecom's wholly owned firm BFKT owns the CDMA network in the 25 provinces, which is being leased by HutchisonCAT Wireless Multimedia to provide CDMA cellular service under the Hutch brand and under a marketing contract granted by CAT. HutchisonCAT is a joint venture of CAT and Hutchison Telecom.
The Supreme Administrative Court ruled on Thursday to suspend the plan of the National Telecommunications Commission to auction licences for third generation broadband service on the 2.1gigahertz spectrum until the CAT challenge of the NTC's licensing authority at the Central Administrative Court reaches finality.
Those who are eager to use the 3G2.1GHz service have bombarded CAT with fierce criticism for delaying of the availability of licences.
Jirayuth said the CAT board felt that CAT did not do anything wrong by taking its the case to the court according to the law. The board views that CAT is a victim of public criticism.
He added that to the contrary, CAT has supported its private concession holders TrueMove and Total Access Communication (DTAC) to provide 3G service on the existing 850megahertz spectrum, though at this stage the service being offered is on a noncommercial trial basis.
TrueMove and DTAC are both waiting for the permission of two state panels to provide commercial 3G service on 850MHz. Jirayuth said CAT would ask the two panels next week to speed up the process.
He denied the claim by the NTC that CAT and TOT had asked for NTC permission to allow both cellular operators to launch 3G service on 850MHz, a move that suggests CAT and TOT do not recognise the NTC's licensing authority.
He said CAT just asked for NTC permission for TrueMove and DTAC to upgrade the network from second generation to 3G technology to provide the more advanced service, and did not request of new spectra for them.
He said he hoped the National Broadcasting and Telecommunications Commission could get off the ground soon to grant the 3G licences, so that CAT would no longer be blamed for causing the licensing delay.
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Thai govt eyes cheap broadband access
Bangkok Post: 1 Oct 2010
Cheap broadband eyed
Public and private sectors urged to join
The government has told the two state telecom enterprises and private operators to get behind a national low-cost broadband project instead of worrying about when or if 3G licences will become a reality.
The goal should be to make broadband internet available for as little as 150 to 200 baht a month to as many people as possible in all parts of the country, said Juti Kririksh, the Information and Communications Technology (ICT) minister.
Mr Juti made his pitch yesterday at a press conference attended by the heads of TOT Plc and CAT Telecom, saying all parties involved in planning for 3G should now shift their focus to a single broadband network.
He said that third-generation wireless services were only part of the national broadband project to expand high-speed internet services nationwide.
"We're pushing for this policy as we don't want to get stuck with the 3G thing [that didn't happen]," said Mr Juti, referring to the court-ordered suspension of a 3G licence auction pending clarification of regulatory authority.
The ministry envisions combining the telecom networks of the three state electricity enterprises, TOT and CAT and the top three private mobile operators into a single network national telecom highway.
The goal is to expand broadband network coverage to 80% of population by 2015 and 95% in 2020. Monthly fees should be no more than 2% of people's incomes or around 150-200 baht, compared with the current service fees of 599 baht a month or 6%.
Mr Juti said his ministry was drafting a master plan to propose to a broadband committee headed by Prime Minister Abhisit Vejjajiva before submitting it to the cabinet for approval.
To support the broadband project, Mr Juti said the two state telecom enterprises would push their 13-billion-baht next generation network (NGN) project, submarine cable infrastructure, and a 6-billion-baht fibre-to-the-home network expansion to accommodate multimedia data usage.
TOT president Varut Suvakorn said TOT planned to introduce NGN services in 100 areas in Trang, Nakhon Si Thammarat and Phitsanulok provinces as a pilot project. Speeds would be 2 megabits per second at 200 baht a month, he said.
CAT president Jirayuth Roongsrithong said CAT was preparing to expand its broadband capacity by 20% in industrial zones in eastern and western provinces. It is also increasing the number of its WiFi locations to 35,000 nationwide.
He said the broadband project was part of Thailand's ICT master plan II to develop the industry, covering broadband, conversion of mobile-phone concessions and wireless communications industry development.
The ministry will present a draft national broadband policy to the cabinet this month.
It is proposing to extend broadband coverage across the nation within two years via the services of TOT and CAT.
http://www.bangkokpost.com/business/telecom/199092/cheap-broadband-eyed (http://www.bangkokpost.com/business/telecom/199092/cheap-broadband-eyed)
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TOT: 3G by April 2011
State-run TOT Plc plans to provide 3G broadband services by April next year, TOT managing director Warut Suwakorn said on Thursday.
"TOT is now procuring the network equipment and the setup is expected to be complete within three months," Mr Warut said.
He said the service should be launched within six months, as set by the Information and Communication Technology Ministry.
Krung Thai Bank had initially offered to provide financial consulting services to TOT, while Kasikornbank had offered to provide loans to the state telecom enterprise.
TOT was also considering obtaining foreign loans from Standard Charter, Barclay and Ericson State banks.
"A positive thing about getting foreigns loans is that they are low interest and the payment period is seven years. However, the baht's value is always changing," Mr Warut said.
The managing director said his company would welcome an alliance with Advance Info Service (AIS) in the 3G project and take part in the marketing strategy as a virtual network operator (VNO).
Information and Communication Technology Minister Juti Krairiksh
ICT Minister Juti Krairiksh said TOT's 3G project had immense benefits and the procurement needed to be examined thoroughly while the auction must be open to all bidders.
"The first 3G base station must be operational before April next year," Mr Juti said.
He said the ministry wanted TOT to allow foreign firms that do not have offices in Thailand to take part in the auction, so foreign investors can bring in their money to the country immediately.
On CAT Telecom Plc's 7.5 billion baht plan for Hutchison CAT Wireless Multimedia Ltd, Mr Juti said he had instructed CAT Telecom chief executive officer Jirayuth Rungsrithong to hold talks with Hutchison and submit a proposal to the cabinet within one month.
http://www.bangkokpost.com/business/telecom/199021/tot-3g-by-april-2010 (http://www.bangkokpost.com/business/telecom/199021/tot-3g-by-april-2010)
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3G to be in service by Q2/2011
BANGKOK, 1 November 2010 (NNT) - After a long delay, the TOT has finally decided to speed up the process for the 3G bidding, saying the first phase will be in service by the second quarter of next year.
The TOT board will grant a permit to only one lowest bidder to operate the third-generation telecommunication service( 3G) for the whole country. The TOT said the system was very complicated and should, therefore, be operated by only one company, which will be required to use the same equipment throughout the nation.
According to the TOT, AIS and True Move have already sent their subsidiary companies to join the TOT in operating the 3G service. The two companies are acting as Mobile Virtual Network Operators (MVNO) for the time being.
The Terms of Reference (TOR) have been completed and are now under the Attorney General Office’s consideration. The bidding will take place in December, and the name of the winning company will be announced in January next year.
The service is planned in three phases. The first phase, in which the service will be provided in important areas, is expected to be available in the second quarter of 2011. Service in the second phase will be provided for Bangkok, four surrounding provinces, and 13 other economic provinces; it should be in operation within 180 days after the first phase has been in place.
The third and final stage, which will cover the whole country, will be completed within 4 years. The TOT has expected that the 3G service will be able to support up to seven million numbers.
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TOT wins backing for national 3G launch
Asia Property Report: 16 Nov 2010
TOT wins backing for 3G launch
TOT's 19.98-billion baht nationwide 3G network project, fully backed by the government, is progressing smoothly with the latest assurance from the Information and Communications Technology Minister Juthi Krairiksh that bidding will be open and called within the next two weeks and service can start in six months.
The nod came after the minister met executives of TOT and CAT Telecom about accelerating their projects to meet the government's timetable.
Mr Juthi said he was assured by the TOT boss that it will start selling bidding documents for the construction of its 3G network on Nov 28 to meet the government's timetable for the construction of the first station, allowing actual service within six months.
He said TOT eased several tight conditions under the ministry's advice to pave the way for free competition in the bidding. One of these is that any bidder can join a Thai company to enter a bid, as previously a bidder had to be registered in the country for at least one year.
Another change is previously TOT required a bidder to have worked with a Thai government agency on projects in excess of 1 billion baht, he said. That value has been lowered to 500 million baht and can include overseas projects if it is certified by the embassy of the country the work was conducted in.
The ICT minister said he was confident the bidding would be more competitive and would encourage more small companies to enter the bidding.
He said TOT earlier claimed its tight conditions would screen only credible and potential bidders, making sure work was completed smoothly and on time. He said he would await TOT's final terms of reference to decide on whether he would suggest further changes.
"If TOT attempts to defer the issuance of its terms of reference and further delays the project, it could be interpreted that they wanted a new minister to change the conditions," he said.
TOT plans to finish in phases the construction of 4,772 base stations and roll out service within six months after signing the network procurement and installation contracts.
http://www.bangkokpost.com/business/telecom/206582/tot-wins-backing-for-3g-launch (http://www.bangkokpost.com/business/telecom/206582/tot-wins-backing-for-3g-launch)
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dtac Announces Data Plans for iPad with Wi-Fi + 3G in Thailand
- The Nation 2010-12-02
dtac announced it will offer dedicated data plans for iPad with Wi-Fi + 3G in Thailand beginning December 3.
All data plans will be available without a contract, providing the freedom to activate or cancel a plan at any time.
iPad allows users to connect with their apps and content in a more intimate, intuitive and fun way than ever before. Users can browse the web, read and send email, enjoy and share photos, watch HD videos, listen to music, play games, read ebooks and much more, all using iPad's revolutionary Multi-Touch user interface. iPad with Wi-Fi + 3G models are just 0.5 inches thick and weigh just 1.6 pounds - thinner and lighter than any laptop or netbook—and deliver up to 10 hours of battery life for surfing the web on Wi-Fi, watching videos or listening to music, and up to nine hours of surfing the web using a 3G data network.*
"We are excited to launch data plans for iPad which is a highly anticipated device among Thai consumers," said Pakorn Pannachet, Senior Vice President - Products Division, Total Access Communication Public Company Limited (dtac). "With dtac's superior data-oriented network, we believe customers will enjoy using the full range of features from this amazing device."
For further information on iPad internet plans, please visit www.dtac.co.th/ipad (http://www.dtac.co.th/ipad).
For more information about iPad please visit www.apple.com/ipad (http://www.apple.com/ipad).
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AirAsia 'Tune Talk' Thailand 3G venture
Bangkok Post: 13 Dec 2010
AirAsia flies into 3G whirlwind
Fernandes promises region-wide service
AirAsia is jumping into the telecom business in Thailand with the aim of revolutionising the industry under the tagline "Now Everyone Can Talk".
Asia's largest low-cost airline signed a 49:51 joint-venture deal last week with a group of Thai investors to establish Tune Talk Thailand Co.
The company, with 100 million baht in registered capital, will provide 3G wireless broadband services on behalf of TOT Plc, with the planned debut of its Tune brand on Jan 13.
Tony Fernandes, the founder and CEO of AirAsia, said his entry into the Thai mobile market was intended to create a new value-added lifestyle and low-cost communications service with "one SIM card, one flat calling rate throughout the region".
"We have the necessary elements for success - solid distribution channel and the extensive customer base of AirAsia - to make our mobile expansion in Thailand gain a greater foothold in the region," he said.
AirAsia expects to carry 33 million passengers on Asian routes this year, 12 million of whom are inbound and outbound passengers in Thailand. It wants 51 million passengers in the region in 2011.
Tune Talk will use the Celcom (Malaysia) network in the region.
AirAsia, known for the slogan "Now Everyone Can Fly", has also invested in a no-frills hotel business to develop Tune hotels throughout the region.
Tune Talk will market 3G services on behalf of TOT as a so-called mobile virtual network operator (MVNO).
Mr Fernandes said he planned to apply AirAsia's strategy to make wireless data usage more accessible.
The company plans to focus on providing no-frills voice roaming and a seamless data package in a simple, value-for-money product with attractive incentives, easy accessibility and the widest distribution reach.
"We are confident in the Thai market now that TOT has set a clear 3G business direction, and AirAsia is the first company in Thailand with strong MVNO experience," he said.
He shrugged off any concerns over telecom legal hurdles and ambiguous regulations, saying AirAsia had had its share of experience with bureaucracy because of the nature of the airline business, which it considers the most complicated industry in the world.
He also believes his timing is perfect. With the 3G expansion plan of TOT still not clear, he sees it as a good opportunity for the company.
Tom Kruesophon, the managing director of Tune Talk Thailand, said he believed that bringing foreign operators to join TOT's 3G plan was the only way for the state telecom enterprise to survive.
The company plans to spend 300 million baht on marketing and administration under a three-phase budget plan.
Mr Tom said its target customers were existing AirAsia flyers, tablet-computer users and an underserved segment who have never used data services.
"We expect to have 500,000 subscribers within 18 months of operation, and 1 million customers by 2012," Mr Tom said.
Tune Talk is aiming for average revenue per user of 150-200 baht per month. About 500,000 customers are needed for profitability, he added.
Tune Talk plans to sell MVNO SIM cards on AirAsia planes. Customers can redeem Tune Talk points for free AirAsia flights as part of its promotional campaign, Mr Tom said.
Tune Talk Thailand, through TKC Co, has received an MVNO licence from the National Telecommunications Commission.
http://www.bangkokpost.com/business/telecom/211031/airasia-flies-into-3g-whirlwind (http://www.bangkokpost.com/business/telecom/211031/airasia-flies-into-3g-whirlwind)
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TOT 3G plan on schedule
Despite the sudden removal of TOT Plc's president, its board pledges that its 19-billion-baht 3G wireless broadband nationwide network will go ahead on schedule, says chairman Areepong Bhoocha-oom.
The board of the state telecom enterprise last week decided to terminate the employment of president Varut Suvakorn, raising worries about further delays in planned 3G supplier bids, previously delayed from Nov 29 to mid-December.
The delay in the auction because of changes in the bid terms was mentioned as one of main reasons for the board's dissatisfaction with Mr Varut.
Mr Areepong said the board was demanding to see improvements in TOT's efficiency so that it could stand up to heavy industry current competition, so change at the helm was inevitable.
Mr Varut is still in his post until Jan 8, but his management duties will be limited.
The board designated one of its directors, Boonmark Sirinaovakul to handle legal documents until Mr Varut's final day. Then, it will appoint someone of the senior management as acting president until the selection process ends.
"Until we find the new president, the board agrees to be fully hands-on in the state telecom enterprise network expansion to make sure it meets the schedule," said Mr Areepong.
The board also insisted it could sign contracts with the winning bidders by February, even though the bid may be delayed.
One member of the board who declined to be named said Mr Varut would have been ousted even earlier but the directors were worried at the time that this would have put the 3G project even further behind schedule.
"There were a lot of issues that the board was unhappy with but the main issue was the 3G project's bidding terms. TOT and the the Ministry of Information and Communication Technology disagreed on the bidders' qualification terms," added the member of the board.
Mr Varut, who had been working on a six-month contract, would be offered six months' compensation payment plus one month's salary in lieu of advance notice.
TOT plans to open bids for the installation of 4,772 3G nodes and co-site infrastructure that will be built to link with 2,392 base stations of Advanced Info Service and 137 of CAT telecom.
http://www.bangkokpost.com/business/economics/211032/ (http://www.bangkokpost.com/business/economics/211032/)
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DTAC hails approval for 3G expansion
Bangkok Post: 25 Dec 2010
DTAC hails long-delayed approval for 3G expansion
DTAC yesterday hailed the decision by CAT Telecom to approve the company's long-delayed network upgrade for non-commercial 3G wireless broadband services.
"The approval will give DTAC the opportunity to finally offer our customers the experience of 3G," said chief executive officer Tore Johnsen.
The board of the state telecom enterprise on Thursday made an about-face and approved the company's expansion of trial services to 1,220 cell sites from only 36 now, after a two-year delay.
Mr Johnsen said DTAC saw the approval as a sign that the government wanted 3G to happen in Thailand.
Utilisation of existing frequencies would now be given priority while the industry waits for the establishment of a new regulator, the National Telecommunications and Broadcasting Commission (NBTC), and an auction for commercial 3G licences on the 2.1GHz spectrum, he added.
"DTAC's goal is obviously to be allowed to offer the 3G services on a commercial basis and we therefore hope that the decision on this will be taken soon," he said.
"We also sincerely hope that necessary regulatory approvals from the NBTC will follow.
DTAC has 20.9 million subscribers.
DTAC shares closed yesterday on the Stock Exchange of Thailand at 43.50 baht, up 3.6%, in trade worth 370.6 million baht
http://www.bangkokpost.com/business/telecom/213056/dtac-hails-long-delayed-approval-for-3g-expansion (http://www.bangkokpost.com/business/telecom/213056/dtac-hails-long-delayed-approval-for-3g-expansion)
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DTAC Gears Up for 3G Test Run
Tan Network 2011-01-20
Telecom operator DTAC will be offering trial services for third-generation, or 3G, mobile phone service in Bangkok in the third quarter of this year.
Thana Thienachariya, the executive vice president for Corporate Affairs and Chief Strategy Officer of Total Access Communication company, or DTAC, is expecting that it will take a long time to fully establish the National Broadcasting and Telecommunications Commission, or NBTC.
He is concerned that the delay will be an obstacle to growth in the telecommunications industry, which is an important industry to the country.
Thana added that DTAC is preparing to offer its third-generation, or 3G phone service on a trial basis in Bangkok.
The service is expected to be available in the third quarter of this year.
DTAC won approval by the board of CAT Telecom company at the end of December last year to run a trial 3G service on the 850 MHz spectrum using High Speed Data Packet Access technology at 1,220 base stations.
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3G auction to go ahead despite possible lawsuits
By SIRIVISH TOOMGUM,
USANEE MONGKOLPORN
The Nation 2011-01-26
A telecom industry source, while declining to elaborate, said 'an attempt' was also being made to delay the auction.
According to a primary qualification examination by TOT, the SL consortium of Loxley, Samart, Nokia Siemens Networks and Huawei Technologies and the AU consortium of Advanced Information Technology, Alcatel-Lucent (Thailand) and United Communication Industry are the two qualified bidders. The two disqualified bidders are the Ericsson-AS Associate Engineering (1964) and Forth Corp-ZTE consortia.
TOT informed Ericsson's consortium on January 14 and Forth-ZTE on January 19 about their preliminary disqualifications and gave them three days after the notifications to appeal against the ruling. If TOT did not consider their appeals, that would amount to final disqualification.
Both have petitioned the Prime Minister's Office and the Information and Communications Technology Ministry on the matter.
Another telecom industry source said the Ericsson consortium had considered bringing the case to the court.
Given that this is TOT's biggest project in many years, no potential bidder wants to miss the chance to take part. Samart Corp is eager to clinch the whole project, which would help boost its ICT business revenue by Bt6 billion this year.
ZTE (Thailand) managing director Zhang Xioake said yesterday that ZTE would bring the case to the court once it was officially informed by TOT that it is disqualified. But he declined to provide details as it is consulting a lawyer on the case.
According to ZTE, it was disqualified because of its proposal for core capacity of the network higher than required by the bid's Terms of Reference (TOR). Last Friday, the company submitted an appeal to TOT to confirm its full compliance with the TOR.
"It's not a mistake to provide more than the TOR," Zhang said.
Also last Friday, ZTE petitioned the PM's Office, the ICT Ministry and the TOT board that the result was unfair to ZTE and the qualifications of some bidders were doubtful, which should not be ignored by TOT. It added that more consortia competing in the bid would benefit TOT.
Earlier, there was a rumour that Samart's qualifications contradicted the TOR, which bans companies doing business in competition with TOT from joining the bid. Samart president Watchai Vilailuck argued that the company had never competed with TOT.
China's ZTE has set a revenue target for its Thai subsidiary of US$160 million (Bt4.95 billion) this year, compared with ZTE Thailand's revenue of $55 million last year.
When asked if it could meet the revenue target if it fails to take part in the TOT 3G project, Zhang said the company would try its best to meet the goal. He added that there was huge business opportunity in the mobile and broadband network markets here.
The TOT panel disqualified the Ericsson-led consortium for the absence of catalogues for antenna-related products in its proposal.
Ericsson Thailand sent three letters last week to TOT to clarify the case, one of which asked why that apparent oversight had not been raised during a meeting with TOT representatives on January 14 to discuss the Ericsson proposal. The consortium should have been notified of this matter during the meeting so that it could rectify the situation, it argued.
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CAT hands True 3G windfall
By Usanee Mongkolporn
The Nation 2011-01-28
State firm denies any breach of regulations in awarding deals; court rejects plea for stay on TOT's 3G auction today
The 3G-licensing saga took a new twist yesterday with True Corp becoming the sole operator to be awarded the rights to a 3G-service roll-out.
Meanwhile, the future of other private operators hinges on TOT's e-auction for the 3G2.1GHz network today after the Central Administrative Court last night rejected the petition by the disqualified Ericsson-led consortium for a stay on the auction.
CAT Telecom yesterday awarded deals to two of True Corp's wholly owned subsidiaries for joint development of the 3G wireless broadband services nationwide.
The partnership paves the way for CAT-True to take the lead in providing 3G service and will come as a relief to True.
True's concession with CAT will end in 2013, forcing it to urgently seek deals to sustain its mobile-phone business.
Operating profit
The CAT deals will also enable True's wireless business led by TrueMove to report an operating profit for the first time in the next few years, True CEO Supachai Chearavanont told a press conference.
The only obstacles to that are lingering legal doubts concerning the cancellation of CAT's purchase of Hutchison Telecom's Thai operations, the emergence of True as the potential buyer, and the joint development deal between CAT and True. Given that all of this took place after the National Telecommunications Commission's 3G auction was abruptly suspended last September, questions have been raised over whether the process is entirely legal.
CAT and True executives yesterday expressed their shared view that the deal did not contradict any laws.
CAT senior executives have already submitted a request to the ICT Ministry to consider if the joint development needs to be regulated by the 1992 Public-Private Joint Venture Act.
CAT chief executive officer Jirayuth Rungsrithong believes this will not be necessary, saying the project is not a joint venture.
Both Supachai and Jirayuth had reasons for wanting the deal to be concluded quickly.
'No change in deals'
The former said that the deals with CAT must be clinched this month, as the exclusive rights for True subsidiaries Real Move and Real Future to buy four Hutchison subsidiaries in Thailand, including BFKT, will end.
He said he did not expect any change to the deals, even after the election.
Jirayuth said that the rush is necessary, to stop CAT Code Division Multiple Access (CDMA) business from further bleeding. The business has suffered loss of Bt1 billion every year, due to the complication in the business structure.
The chief said that instead of loss, CDMA would generate Bt2 billion in annual revenue. CAT staff, however, raised doubts about the chief's projection.
The deals would be submitted to the board of directors for acknowledgement today, Jirayuth said. Though the board had just approved the agency's 3G business plan last week, Jirayuth claimed that the board allowed the management to sign the deals once the document is ready.
12 contracts
Both CAT and True signed 12
contracts yesterday, starting at 7.45am.
After the signing, Real Move will oversee 800,000 customers of CAT on its CDMA network in 25 provinces for two years, during which CAT will convert the network to 3G-High Speed Packet Access (HSPA) technology. The CDMA network has generated around Bt4.3 billion revenue per year with expenses of Bt3.8 billion.
Supachai said Real Future would spend between Bt5 billion to Bt6 billion on installing the 3G-HSPA radio-active equipment on CAT's two separate CDMA networks nationwide. Then CAT will lease such HSPA equipment from
Real Future to provide wholesale service.
True chief finance officer Noppadol Dej-udom said that True would break even from this investment within 6-7 years.
The planned HSPA network is expected to draw 2 million customers within two years, of which the first group will be existing customers on the CDMA network in 25 provinces.
CAT also granted the deal to Real Move to resell the planned HSPA service for 14 years. While CAT and True executives declined to specify the details of the deal, Supachai said Real Move could offer the service to customers at a reasonable price based on the effective cost.
Meanwhile, Supachai assured about 1,000 employees of Hutchison yesterday that they would not be laid off after the takeover.
At a glance
Details of the four main contracts CAT granted to Real Move and Real Future yesterday.
- Real Move to oversee about 800,000 CAT customers on the CDMA network in 25 provinces for two years, during which time it will share 20 per cent of the revenue from the CDMA cellular service with CAT.
- Real Future to install HSPA equipment on the two CDMA networks nationwide.
- CAT will lease from Real Future the HSPA equipment to provide a wholesale 3G service.
- Real Move will resell the HSPA service for 14 years. CAT and True declined to specify further details.
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Thai 3G network takes step forward
Bangkok Post: 29 Jan 2011
3G network takes step forward
ANALYSIS: TOT gives telecom giants a head start in developing 3G infrastructure as state regulator takes shape
Thailand's mobile phone sector has taken a small step forward after state-owned TOT Plc awarded a group led by Samart Telecom and Loxley a 16.29 billion baht contract to build a third-generation wireless network.
High-speed telecom services are expected to be available in 13 provinces within six months, and nationwide within one year.
The move came a day after True Move, the country's third-largest mobile operator, signed contracts with CAT Telecom to extend the term of its own concession agreement as well as expand into 3G services. True Move, a unit of True Corp, expects to offer nationwide 3G services within two years.
Demand for 3G has jumped sharply in recent years thanks to the popularity of smartphones such as Apple's iPhone or Research in Motion's BlackBerry handsets. New tablet PCs such as the iPad have also raised customer expectations for high-speed networks to gain access to the internet for multimedia and data applications.
But efforts to launch 3G networks that can transmit data several times faster than today's GSM systems have been delayed for years due to political and regulatory infighting. The three major telecom providers _ Advanced Info Service, Dtac and True Move _ currently offer 3G services in limited areas under trial arrangements but cannot begin full commercial services without a licence.
But efforts to sell off 3G licences must wait until the formation of the National Broadcasting and Telecommunications Commission, a body that will replace the National Telecommunications Commission (NTC) as the primary regulator of the telecom sector. A planned auction of 3G licences by the NTC was scrapped at the last dhmoment late last year after a court challenge over the bid's legality.
But operators may still seek the right to sell 3G services by forming partnerships with the state-owned TOT Corp and CAT Telecom as so-called mobile virtual network operators. Under an MVNO arrangement, a company can market services under its own brand while using a network owned by either state enterprise.
The TOT contract awarded yesterday aims to give the state enterprise a headstart in developing 3G infrastructure as AIS and Dtac wait for the country's new regulator to be formed.
The winning SL Consortium won with a bid of 16.29 billion baht, or 6.59% lower than the reserve price and beating out competitors such as Ericsson, China's ZTE Corporation and a group comprising Advanced dhInformation Technology and United Communications.
SL Consortium is 65% owned by Samart Communications Services, a unit of Samart Telecom, and 35% by Loxley Wireless, a unit of Loxley Plc. Shares of Samart Telecom on the Stock Exchange of Thailand rose 2.46% yesterday while Loxley gained 5.34% even as the main market closed down 0.49%.
The bid was held by the TOT yesterday morning after the Administrative Court late Thursday rejected petitions by Ericsson and ZTE Corp to halt the contract auction due to irregularities. The TOT board is due to formally approve the contract with SL Consortium on Feb 11.
The 3G contract specifications call for three elements _ 17.44 billion baht for the procurement of network equipment, 2 billion for network upgrades for TOT's existing 3G network in Bangkok and 540 million baht as a reserve.
Within 180 days of the contract, 3G services are to be available in 13 provinces: Chon Buri, Rayong, Songkhla, Surat Thani, Phuket, Chiang Mai, Chiang Rai, Lampang, Phitsanulok, Udon Thani, Nakhon Ratchasima, Khon Kaen and Nong Khai. The remaining provinces in the country would be covered within 12 months.
Once TOT's 3G network is fully in place, it would give the state enterprise the ability to either roll out its own mobile service or offer bandwidth to a private operator under an MVNO arrangement.
A number of MVNO providers are already in operation, though most of them are limited in scale to providing 3G wireless internet access aimed at laptop users in urban areas. In any case, industry experts say the MVNO system also operates under a regulatory cloud because of different interpretations of the Frequency Allocation Act.
Section 46 of the act says a radio frequency licence is an exclusive right awarded to a licensee and may not be transferred or assigned to others, raising questions about whether TOT Plc can allow others to use its network under the MVNO system.
Tom Kruesophon, head of virtual network operator Tune Talk Thailand, said the government should clarify the wording, to prevent problems for TOT and MVNOs. The business model for MVNOs also was impractical, he said. The TOT charges MVNOs 70 baht for a 3G SIM card even though the card itself costs just 10 baht.
http://www.bangkokpost.com/news/local/218782/3g-network-takes-step-forward (http://www.bangkokpost.com/news/local/218782/3g-network-takes-step-forward)
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Thai 3G network takes step forward
Bangkok Post: 29 Jan 2011
ANALYSIS: TOT gives telecom giants a head start in developing 3G infrastructure as state regulator takes shape
Thailand's mobile phone sector has taken a small step forward after state-owned TOT Plc awarded a group led by Samart Telecom and Loxley a 16.29 billion baht contract to build a third-generation wireless network.
High-speed telecom services are expected to be available in 13 provinces within six months, and nationwide within one year.
The move came a day after True Move, the country's third-largest mobile operator, signed contracts with CAT Telecom to extend the term of its own concession agreement as well as expand into 3G services. True Move, a unit of True Corp, expects to offer nationwide 3G services within two years.
Demand for 3G has jumped sharply in recent years thanks to the popularity of smartphones such as Apple's iPhone or Research in Motion's BlackBerry handsets. New tablet PCs such as the iPad have also raised customer expectations for high-speed networks to gain access to the internet for multimedia and data applications.
But efforts to launch 3G networks that can transmit data several times faster than today's GSM systems have been delayed for years due to political and regulatory infighting. The three major telecom providers _ Advanced Info Service, Dtac and True Move _ currently offer 3G services in limited areas under trial arrangements but cannot begin full commercial services without a licence.
But efforts to sell off 3G licences must wait until the formation of the National Broadcasting and Telecommunications Commission, a body that will replace the National Telecommunications Commission (NTC) as the primary regulator of the telecom sector. A planned auction of 3G licences by the NTC was scrapped at the last dhmoment late last year after a court challenge over the bid's legality.
But operators may still seek the right to sell 3G services by forming partnerships with the state-owned TOT Corp and CAT Telecom as so-called mobile virtual network operators. Under an MVNO arrangement, a company can market services under its own brand while using a network owned by either state enterprise.
The TOT contract awarded yesterday aims to give the state enterprise a headstart in developing 3G infrastructure as AIS and Dtac wait for the country's new regulator to be formed.
The winning SL Consortium won with a bid of 16.29 billion baht, or 6.59% lower than the reserve price and beating out competitors such as Ericsson, China's ZTE Corporation and a group comprising Advanced dhInformation Technology and United Communications.
SL Consortium is 65% owned by Samart Communications Services, a unit of Samart Telecom, and 35% by Loxley Wireless, a unit of Loxley Plc. Shares of Samart Telecom on the Stock Exchange of Thailand rose 2.46% yesterday while Loxley gained 5.34% even as the main market closed down 0.49%.
The bid was held by the TOT yesterday morning after the Administrative Court late Thursday rejected petitions by Ericsson and ZTE Corp to halt the contract auction due to irregularities. The TOT board is due to formally approve the contract with SL Consortium on Feb 11.
The 3G contract specifications call for three elements _ 17.44 billion baht for the procurement of network equipment, 2 billion for network upgrades for TOT's existing 3G network in Bangkok and 540 million baht as a reserve.
Within 180 days of the contract, 3G services are to be available in 13 provinces: Chon Buri, Rayong, Songkhla, Surat Thani, Phuket, Chiang Mai, Chiang Rai, Lampang, Phitsanulok, Udon Thani, Nakhon Ratchasima, Khon Kaen and Nong Khai. The remaining provinces in the country would be covered within 12 months.
Once TOT's 3G network is fully in place, it would give the state enterprise the ability to either roll out its own mobile service or offer bandwidth to a private operator under an MVNO arrangement.
A number of MVNO providers are already in operation, though most of them are limited in scale to providing 3G wireless internet access aimed at laptop users in urban areas. In any case, industry experts say the MVNO system also operates under a regulatory cloud because of different interpretations of the Frequency Allocation Act.
Section 46 of the act says a radio frequency licence is an exclusive right awarded to a licensee and may not be transferred or assigned to others, raising questions about whether TOT Plc can allow others to use its network under the MVNO system.
Tom Kruesophon, head of virtual network operator Tune Talk Thailand, said the government should clarify the wording, to prevent problems for TOT and MVNOs. The business model for MVNOs also was impractical, he said. The TOT charges MVNOs 70 baht for a 3G SIM card even though the card itself costs just 10 baht.
http://www.bangkokpost.com/news/local/218782/3g-network-takes-step-forward (http://www.bangkokpost.com/news/local/218782/3g-network-takes-step-forward)
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3G deal with Real Move will enable CAT to gain Bt14 bn
By USANEE MONGKOLPORN
The Nation 2011-02-14
CAT Telecom is estimated to gain at least Bt14 billion in revenue from leasing the planned wholesale 3G service capacity to True Corp's Real Move throughout the 14-year contract term, a CAT source said.
The source added that the figure is based on CAT's estimation of the net present value of the planned 3G-High Speed Packet Access (HSPA) wholesale service capacity business.
CAT will lease the planned HSPA network from BKFT (Thailand) of True's subsidiary Real Future. Then CAT will mark up between 20 per cent to 22 per cent on this network leasing fee as the price of the wholesale capacity it will lease to Real Move, the CAT source added.
True's chief executive officer Supachai Chearavanont said CAT would gain more benefits from the 3G partnership with True than if CAT opts to do this business on its own.
According to the wholesale-resale deal, Real Move can lease a maximum of 80 per cent of the planned HSPA nationwide network capacity during the first three years for resale. CAT will resell the remaining amount on its own and sell it as wholesale to other resellers.
Supachai said True's cellular flagship company TrueMove would migrate heavy mobile data users to the upcoming HSPA network. They are still mulling options for heavy voice users. He said that once TrueMove's concession ends in 2013, it will have to return 1,800MHz spectrum to the National Broadcasting and Telecomm-unications Commission (NBTC) and TrueMove might have to bid for the 1,800MHz spectrum licence from the NBTC to continue to provide service.
He said the 15MHz bandwidth of the 850MHz spectrum that CAT would allocate to Real Move to provide HSPA service might not be enough to serve the |heavy-data customers in the long term.
The four main contracts CAT granted to True subsidiaries Real Move and Real Future on January 27 marked their partnership in the HSPA service but at the same time raised doubts about their legitimacy.
Some contracts contain the clause that if they are later found invalid or breach any law, the contractual parties will jointly make the efforts to correct them.
Supachai said that this clause was added due to concerns that the contracts might breach any upcoming NBTC regulations. He denied that it reflects concern that the contracts might contradict the 1992 Public-Private Joint Venture Act.
He said he had learned after signing the contracts that the appendix parts of some contracts are blank pages.
Some appendix of some contracts on the signing date are blank pages, which state that the contractual parties will jointly finish the details as soon as possible after the contract signing.
Supachai admitted that now he feels uncertain if the True-CAT collaboration in the 3G service would be smooth, following a series of questions about its legitimacy. If the two 3G related deals fall through, he hopes True could keep the code division multiple access (CDMA) related deals.
Besides the HSPA network leasing and the service resale deals, CAT granted a deal to BFKT to lease the CDMA network in 25 provinces to CAT. It also granted a deal to Real Move's Hutchison-CAT Wireless Multi-media to market the service on such network.
The Office of the Auditor-General last week advised the CAT board to either review the 3G service project or answer all of its doubts regarding the legitimacy of the deals.
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3G network good to go in 2 months: CAT chief
By USANEE MONGKOLPORN
THE NATION
2011-02-16
CAT Telecom can switch on its third-generation HSPA network within two months, chief executive Jirayuth Rungsrithong said yesterday, shrugging off doubts over the deals the state enterprise made with True Corp.
CAT can start up the network service quickly as TrueMove is installing high-speed packet access (HSPA) equipment from its own network on to the code division multiple access (CDMA) network in 25 provinces of BFKT (Thailand) so that it will be HSPA-capable.
CAT will lease the HSPA network from BFKT of Real Future and wholesale capacity to reseller Real Move.
Jirayuth said Real Move and Real Future, both True Corp subsidiaries, and CAT had completed the appendices of some contracts they signed on January 27, and stressed that the appendices would benefit CAT.
The four main deals are for BFKT (Thailand) of Real Future to lease the HSPA network to CAT, for Real Move to resell the planned HSPA service, for BFKT to lease its CDMA network in 25 provinces to CAT, and for Hutchison-CAT Wireless Multimedia of Real Move to market the service on the CDMA network in 25 provinces.
On the signing date, Appendix 6 of the HSPA network lease between CAT and BFKT, regarding network capacity delivery in the first phase and the calculation of fines, was left blank. It just says the contractual parties will negotiate to finish this part as soon as possible.
Appendix 7, regarding the service-level agreement and fine calculation, was also left open.
Jirayuth said CAT was expected to gain at least Bt14 billion in revenue from reseller Real Move over the contract term of 14 years.
The deals CAT granted to the two firms raised questions about their legitimacy, including whether they have to come under the Public-Private Joint Venture Act of 1992.
Information and Communications Technology Minister Chuti Krairiksh sent a letter to the Attorney-General's Office last Friday asking for a ruling on whether the deals complied with all laws and regulations.
According to CAT, the new business would improve its EBITDA (earnings before interest, taxes, depreciation and amortisation), which would be high enough to offset its loss of revenue when TrueMove's concession expires in 2013.
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TOT's 3G plan stalls
By USANEE MONGKOLPORN
The Nation 2011-03-02
TOT's board will have to delay its plan this week to consider approving the 3G-network contract, following the resignation of one more director yesterday.
A TOT source said that when Sayan Satangmomgkol tendered his resignation, a political attempt was immediately made to lobby him to change his mind but he did not relent.
His exit, following the resignations of five directors last week, leaves only six directors on the board, not enough to form a quorum to consider key decisions this week.
The board can hold meetings if it has over half of the 12 directors plus TOT's president.
Now the board has only half of the directors and only an acting |president. Political pressure was reportedly brought to bear on TOT's board to hurry consideration of |the 3G contract, but Information and Communications Technology Minister Chuti Krairiksh has |denied it.
The resignation of directors recently follows pressure from many sides.
Chuti recently urged them to press claims for damages against Advanced Info Service for losses from the AIS concession amendments. AIS informed the TOT board it might consider taking legal action against each of the directors over the matter to defend its business.
TOT's board is waiting for an independent committee comprising representatives from other state agencies to give opinions on how to proceed with the plan to grant a contract to the SL consortium.
Though the e-auction for the project was won by the SL consortium led by Loxley-Samart, TOT has yet to sign a contract, pending examination by a TOT committee of the complaints filed by two bidders. The Ericsson-led consortium and the Forth Corp-ZTE consortium both believe they were unfairly disqualified from bidding.
The SL consortium won the auction on January 28 by quoting Bt16.29 billion - 6.59 per cent below the state enterprise's budget of Bt17.44 billion for the project.
The procurement committee then bargained the price down to Bt16 billion.
The Auditor-General's Office has already clarified in writing to TOT the points brought up by the disqualified bidders.
Another key matter to be considered by TOT's board this week is the appointment of a new president.
Its president selection committee plans to nominate TOT senior executive vice president Anont Tubtiang, who was the chairman of the 3G pre-qualification panel, for the post.
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CAT blocks DTAC launch of 3G service
By USANEE MONGKOLPORN
The Nation 2011-04-01
CAT Telecom has further kept Total Access Communication from launching a commercial third-generation telecommunications service after DTAC has been waiting for such permission for many years.
CAT's board yesterday rejected DTAC's request, pending its readiness to accept the condition that it would not seek compensation from CAT for possible losses on its 3G service investment if the Cabinet decides to revoke DTAC's concession.
One telecom source wondered whether there was any hidden agenda, as it was strange that CAT raised such a condition in exchange for its permission. CAT had never mentioned this condition to DTAC before.
DTAC has waited for many years for CAT's nod to go ahead and launch the 3G-HSPA (high-speed packet access) service on its 850-megahertz spectrum. It is already providing a non-commercial 3G service on a trial basis with only 36 bases allowed by CAT.
CAT's board recently let DTAC expand the non-commercial service to 1,220 base stations across the country.
CAT chief executive officer Jirayuth Rungsrithong said it sent a letter to DTAC on March 17 informing the company that CAT would grant permission for commercial 3G service if it agreed first to the condition.
DTAC replied on Monday but CAT is still not satisfied with its answer, he said.
DTAC told CAT that it could accept the condition but only for possible damage to the planned 1,220 3G base stations. But Jirayuth said DTAC should expand its acceptance to cover "all its 3G investment", but declined to go into details.
Jirayuth denied that the board's refusal would benefit Real Move of True Corp, which is expected to launch its commercial 3G service on 850MHz this month.
Real Move would provide the service on a resale basis, unlike DTAC, which wants to provide the service under its existing CAT concession, he said.
The Information and Communications Technology Ministry committee charged with asking private telecom operators to pay compensation for their concession amendments would submit the results of the negotiations for the Cabinet's consideration soon.
DTAC plans capital expen?ditures this year of Bt6 billion to Bt7 billion, with some for network replacement and HSPA network expansion.
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Thai telecom - carnal politics at its worst (http://www.telecomasia.net/content/thai-telecom-carnal-politics-its-worst?section=COMMENTARY&utm_source=lyris&utm_medium=newsletter&utm_content=&utm_campaign=telecomasia&sms_ss=twitter&at_xt=4dba4b808b3f8b16,0)
Don Sambandaraksa | April 29, 2011
Amitiae
There have been many attempts to try and make sense of the telco industry in Thailand; why state telco and concession holder CAT allowed TrueMove to take over Hutch and launch an HSPA 3G network and why fellow state telco TOT has been so slow in signing off the 3G expansion project bid that was won by a consortium of Nokia-Siemens and Huawei.
In the TOT case in particular, the board refused to sign off the project until a few days ago after something happened under the radar.
Both projects could land both state enterprise boards in deep trouble for irregularities. The CAT decision seems a blatant breach of the Constitution that calls for a moratorium on frequency reallocation until the NBTC is up and running, not to mention tilting the playing field in favour of TrueMove (or was it TrueMove H, or was it RealMove? And why have so many names at all?)
The TOT decision is bizarre in that ZTE was kicked out for offering too much network capacity in the technical round and was not allowed to bid. If ZTE wants to offer more capacity in an auction, what is to stop them? Well, the technical guys at TOT, that's who.
While many analysts have been left scratching their heads, the answer to everything is simple. It is an election year.
This is not about technology. This is not public policy. This is raw, carnal, money politics at its worst.
Someone is cashing in to raise funds for the election, plain and simple. Nobody cares about rule of law, due process, fair and level playing fields or any other concept that is remotely civilised. It is about money and the need for money in the run-up to the elections.
DTAC almost launched its own 3G network alongside fellow CAT concessionaire TrueMove. Almost. The clincher was that in order to be given CAT's blessing to do so, they would have to sign away their right to sue CAT in the future. DTAC's new CEO obviously has the guts to know enough is enough and pushed back, suing CAT in the administrative court to halt the TrueMove deal.
Some in DTAC say that the company only has to tell CAT that it is performing an in-band migration network upgrade rather than ask for permission. CAT, in its infinite wisdom, has neither said yes or no and is taking its time, five years and counting, to decide. That is regulation by running the clock out.
TrueMove/RealMove/TrueMove H (pick one, will you?) hit back, calling a press conference and painting itself as the kind, caring face of a Thai minnow battling for national pride and the rights of the poor one million Hutch users against the evil Telenorwegians.
Colourful rhetoric perhaps, but it sidesteps the question of True gaining a backdoor de-facto concession. Nor does it address the issue of how granting RealMove rights to do commercial 3G implicitly also allows TrueMove’s test network, on a different part of the 850 spectrum, to go commercial; spectrum that DTAC claims is overlapping 2.5 MHz of its old 1G AMPS network.
And where is the regulator, the valiant enlightened seven great ones (as they were coined by media) of the National Telecommunications Commission? One key role of a regulator is to guard industry from short-term politics, something they are obviously not doing. NTC Commissioner Natee Sukonrat has gone on record saying that 850 MHz an internal matter between CAT and its concessionaires.
It is an election year, people. Welcome to Thailand.
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Contract granted, nationwide 3G to be in place mid-2012
By Usanee Mongkolporn
The Nation 2011-05-10
TOT is expected to complete the launch of its nationwide third-generation broadband network in the middle of next year after full services come online in Greater Bangkok and 13 major provinces in the middle of the fourth quarter this year.
The state agency yesterday officially granted a Bt15.99-billion contract to the SL consortium of Loxley and Samart to procure equipment for its plan to roll out the network nationwide on the 2.1-gigahertz spectrum.
TOT senior executive vice president Kamthorn Vaitayakul said management had also determined the qualifications of possible partners to help provide the 3G service on an MVNO (mobile virtual network operator) basis, which could be divided into strategic MVNOs and general MVNOs.
MVNOs are companies without their own network that have leased the network or airtime of telecom operators to provide service. A strategic MVNO is one that joins with TOT to determine marketing plans, while a general MVNO just buys 3G phone numbers in bulk from TOT for resale.
Kamthorn said the MVNO details were expected to be concluded next month and TOT might need two strategic MVNOs.
Advanced Info Service, which holds a TOT concession, has been in talks with the agency on a possible MVNO deal.
Three phases
The network installation will be in three phases. The first two phases will be finished in 180 days after the contract signing and will focus on densely populated areas in Greater Bangkok and 13 provinces - Chon Buri, Rayong, Songkhla, Surat Thani, Phuket, Chiang Mai, Chiang Rai, Lampang, Phitsanulok, Udon Thani, Nakhon Ratchasima, Khon Kaen, and Nong Khai. The third phase will be the network's nationwide expansion.
TOT president Anont Tubtiang said the project was meant to be TOT's new revenue source.
The SL consortium will provide to TOT one core network, 4,772 base stations, one network management system, one value-added service system, one business support system, and a maintenance system.
The Office of the Auditor-General has not yet investigated whether TOT conducted the bidder-qualification process for the 3G network on a fair basis, after a complaint by the Ericsson-led consortium at the Central Administrative Court that it was unfairly disqualified from the January's bid process.
TOT has continued to insist that it can clarify all doubts and that the qualification process was conducted transparently.
Last week the TOT board selected a consortium of Bank of Ayudhya and UOB to provide loans for the project. The consortium offered a low interest rate with a 10-year repayment schedule. Of the total project value, 85-90 per cent will be financed by loans.
TOT debuted the existing 3G network in Greater Bangkok in late 2009 and has recruited five companies to provide the service on that network on an MVNO basis. The network, totalling 548 base stations, has about 200,000 subscribers.
TOT targets 1.3 million 3G service subscribers this year before the number rises to 7 million by 2015. It expects revenue of Bt1.7 billion from the 3G service this year before rising to Bt3.482 billion next year.
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Why are they at all considering 3G? If they haven't introduced 3G yet, why do it at all? Europe and most parts of the western world are now moving over to 4G. After using 3G for a couple of years in Sweden I can say it is OK, but it's not good enough, and when the whole country have the 3G available in 2-4 years from now, than the rest of the world will be ready for 5G maybe.
Save some money and skip 3G, go for 4G instead.
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Why are they at all considering 3G? If they haven't introduced 3G yet, why do it at all? Europe and most parts of the western world are now moving over to 4G. After using 3G for a couple of years in Sweden I can say it is OK, but it's not good enough, and when the whole country have the 3G available in 2-4 years from now, than the rest of the world will be ready for 5G maybe.
Save some money and skip 3G, go for 4G instead.
You should know Thailand by now,why go straight to 4G when they can charge you 4G prices and supply you with the sub-standard 3G. whistle
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Why are they at all considering 3G? If they haven't introduced 3G yet, why do it at all? Europe and most parts of the western world are now moving over to 4G. After using 3G for a couple of years in Sweden I can say it is OK, but it's not good enough, and when the whole country have the 3G available in 2-4 years from now, than the rest of the world will be ready for 5G maybe.
Save some money and skip 3G, go for 4G instead.
You should know Thailand by now,why go straight to 4G when they can charge you 4G prices and supply you with the sub-standard 3G. whistle
Yes I understand why they do it, but it's still stupid. And I was foolish enough to believe they had 3G here in Buriram, so I bought a AIS 3G USB-modem with 7.2 Mb, and I have never had faster speed than up to 300 kbps, so much for that cost... :(
I just mean that the country should benefit much more if they could have good Internet all the way out in the villages too. First fiber to all major city's, than cable so most households could have at least ADSL, and for all others 4G.
For me as an Internet Marketer I know the potential Internet has and the future is Internet, no doubt about that. And Internet can creates thousands of online entrepreneurs and give people a good income source. And even if they don't speak English so very good, they still have a big enough market here in Thailand.
But I'm not in charge for this country so I as a farang have to take it the way it is, like it or not... thumbup
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HOW LONG THEY ARE GOING TO DISCUSS 3G?
JUST GIVE US HIGH SPEED INTERNET! slapfight helpsos
ANALYSIS
3G deal will give True, CAT the edge
By Usanee Mongkolporn
The Nation 2011-05-23
But many more hurdles need to be cleared before the project can take off
The tie-up between CAT Telecom and True Corp to offer 3G cellular service could give both a competitive edge but their race to 3G supremacy still faces hurdles.
It still remains uncertain whether the National Telecommunications Commission (NTC) will quickly grant permission to CAT to import High-Speed Packet Access (HSPA) network equipment for the CAT-True 3G project.
The regulator has been treating 3G issues carefully, following a legal challenge to CAT's licensing authority last September.
CAT CEO Jirayuth Rungsrithong said the problem of import permission would be resolved soon.
"Wait and see. We'll have a solution good for everyone," he said.
A CAT source said CAT has already asked True to deal with the NTC on the issue. The NTC reportedly is divided on whether it could allow CAT to import the HSPA equipment.
Currently True's Real Move provides the 3G service under the CAT-True 3G deals using TrueMove's HSPA equipment.
However, CAT still needs the NTC to reissue the permit for TrueMove to use this equipment after the NTC withdrew the permit in February.
The NTC had allowed TrueMove to use the HSPA equipment in 2009 but last June, CAT requested the NTC to withdraw the permit after CAT discovered that TrueMove had installed some HSPA base stations outside of its permitted areas.
CAT's board had allowed TrueMove to re-use such equipment in January but the NTC formally informed CAT about withdrawal of its permit in February.
The NTC will discuss this week about reissuing the permit. It will also debate if the CAT-True deals breach the Frequency Allocation Act, which requires licence holders to use their spectra to provide services on their own, instead of having other parties do so.
"There's still a lot of issues in these deals," NTC member Suranan Wongvithayakamjorn said.
CAT and True's subsidiaries Real Move and Real Future entered these 3G tie-up deals in January. Real Future's BFKT (Thailand) will lease HSPA equipment to CAT to wholesale and resell HSPA services nationwide. Real Move will lease HSPA capacity from CAT to retail the services.
The Office of Attorney-General is probing the deals' legitimacy, while the National Anti-Corruption Commission is probing alleged misconduct by Jirayuth and CAT's board for allowing CAT to sign the deals with True Group. Last week, the Central Administrative Court also accepted for review the complaint of Total Access Communication (DTAC) that the CAT board's decision in January to allow CAT to sign the deals with True is unlawful.
While these legal issues could make it difficult for True to secure loans for 3G service development, True CEO Supachai Chearavanont keeps insisting that these issues will not side-track True's quest for loans.
True has secured a bridge loan of Bt6.3 billion, at an interest of Bt50 million per month, from Siam Commercial Bank (SCB), for BFKT to refinance debt.
Since the bridge loan is due on July 27, True Group sought a loan of Bt49 billion from a group of six banks to repay the SCB loan and finance the 3G business. The deals could give True a competitive advantage with its cost structure to provide the 3G service.
A telecom analyst said these deals are estimated to cost Real Future and Real Move combined only 10-15 per cent of their revenue.
The relatively low cost will let Real Move aggressively market the 3G service.
However, he does not think the advantage will cause a big shift in market share in the near term as Advanced Info Service (AIS) and DTAC still have decent voice network coverage.
The likely scenario is that heavy data users will go for Real Move's 3G services but continue to use AIS and DTAC's networks for voice. But this might hurt AIS and DTAC's data revenue to a certain extent.
The analyst said the only hope for AIS and DTAC to compete with the same regulatory cost structure as True is to clinch 3G-2.1GHz spectrum licences, which are expected to be issued late next year or early 2013 by the upcoming National Broadcasting and Telecommunications Comm-ission (NBTC).
Any delay in licensing would give True a longer head start and pose a higher risk for AIS and DTAC, the analyst added.
A AIS source said AIS has considered applying a similar model as the CAT-True deals to partner with TOT to provide the 3G-2.1GHz service on TOT's planned nationwide 3G network.
AIS has provided a commercial 3G service on a trial basis on its spectrum under its concession with TOT, while TrueMove and DTAC have provided the service on 850MHz on a non-commercial trial basis with CAT's consent.
DTAC is still waiting for CAT's nod to launch a commercial 3G service.
The CAT-True deals have also raised concern from scholars and NTC member Sudharma Yoonaidharma of a possible 3G monopoly for CAT-True, which True has strongly denied.
Sudharma said the market would see actual competition when the NBTC issues 3G spectrum licences, which would enable telecoms to compete with the same licensing regime and cost basis.
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TOT to showcase its 3G service
By Usanee Mongkolporn
The Nation 2011-06-06
TOT plans a two-day showcase of its 3G service again on June 10 with the intention of emphasising that the government could make the dream of a nationwide 3G service in Thailand come true, a state agency source said.
The source added that the showcase will be a political attempt to highlight the government's performance ahead of the July 3 general election.
But the showcase will have to rely on TOT's existing network in Greater Bangkok as the first phase of TOT's rollout of new and nationwide 3G network would be finished in the next four months. The cost of the showcase is estimated at Bt5 million.
TOT introduced the 3G network on December 3, 2009 under the Abhisit Vejjajiva government. At that time, Ranongrak Suwanchawee of the Puea Pandin Party was the Information and Communications Technology Minister.
approval for 3g network
The Cabinet approved the TOT plan to roll out the 3G network nationwide last September. The current ICT Minister Chuti Krairiksh belongs to the Democrat Party.
The Cabinet approval for TOT's new network rollout came shortly after the Central Administrative Court issued an injunction last September against the National Telecommunications Commission's plan to auction the 3G-2.1GHz spectrum licences last September.
TOT is expected to complete the launch of its new 3G network in the middle of next year. The network installation in the first two phases will be finished in 180 days after May and will focus on Greater Bangkok and 13 provinces. The third phase will be the network's nationwide expansion.
TOT's plan to roll out the new nationwide 3G network was not smooth. On January 27, the Ericsson-led consortium filed a complaint at the Central Administrative Court that it was unfairly disqualified in TOT's bidder qualification process to procure the new 3G network. The court has ordered a judicial review.
TOT held the e-auction on January 29 when the SL consortium emerged as the winner. The state agency granted the deal to the consortium in May.
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CAT makes move to speed up granting of NTC 3G permit
By Usanee Mongkolporn
The Nation 2011-06-11
CAT Telecom's official launch of its nationwide third-generation wireless broadband service, planned for the third quarter, will be delayed if the national telecom watchdog does not soon grant the long-awaited permit to install and use HSPA equipment, CAT chief executive officer Jirayuth Rungsrithong said yesterday.
In an effort to move the process along, the CAT board yesterday approved withdrawing one of the two points in its complaint to the Central Administrative Court against the National Telecommunications Commission (NTC). CAT will withdraw that part of the complaint questioning the NTC's overall regulatory power, while maintaining a more specific complaint.
It is hoped this will make the NTC feel more confident of its authority so that it will quickly grant the permit for CAT to install and use HSPA (high-speed packet access) technology to provide 3G service.
But, Jirayuth said, CAT would first talk to the NTC next week to make sure withdrawing part of the court complaint will actually have the desired effect so that the 3G project can go ahead.
CAT now takes the position that the new Frequency Allocation Act, which took effect last December, did empower the NTC to act on behalf of the upcoming National Broadcasting and Telecommunications Commission (NBTC).
However, CAT will not withdraw the other the issue in its complaint, that the NTC has no authority to auction 3G licences for the 2.1-gigahertz spectrum.
Jirayuth said that if CAT were to withdraw both issues, it would risk legal repercussions.
Recently NTC commissioner Sudharma Yoonaidharma said that although the NTC now acts on the NBTC's behalf, this does not mean the NTC can do everything regarding 3G issues, given that there is still no telecom and broadcasting spectrum master plan.
In CAT's view, as specified in its court complaint last September, the present Constitution authorises the NBTC, not the NTC, to grant new spectrum licences.
Moreover, in its original complaint, it questioned the NTC's continuing existence, given that the 1997 charter, which gave birth to NTC, was scrapped by the coup in 2006.
With its authority thus questioned and before the court, the NTC has refused to grant CAT the permit it needs to set up the 3G-HSPA network.
Jirayuth said the telecom network suppliers have already imported the HSPA equipment.
CAT signed deals with True Corp's subsidiaries Real Move and Real Future in January to provide HSPA service jointly. The HSPA equipment is for Real Future subsidiary BFKT (Thailand) to lease to CAT for wholesale service.
CAT has already leased capacity to Real Move, using TrueMove's existing HSPA network.
In a related matter, the CAT board also approved divestment of CAT's 25-per-cent share in its telecom network provider concessionaire United Information Highway to UIH's major shareholder the Benchachinda Co.
CAT will gain Bt260 million from the share sales.
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Telecom sector awaits anxiously next Govt's ICT policies
The Nation 2011-06-20
The Democrat and Pheu Thai parties have both made identical promises to ensure the quick and successful advent of the new national broadcasting and telecom watchdog, knowing that it is a key part in their ICT policy campaigns of promoting equal broadband service accessibility and fair competition in the telecom sector.
Telecom industrialists hope the parties can keep their promise, if one of them forms the government. They have been waiting for 3G spectrum licences for years to develop nationwide wireless broadband service and to enable them to compete on the same fair licensing system. Currently they operate under TOT and CAT Telecom concessions on different terms and conditions.
The process to grant the 3G licences has seen a lot of support and opposition as well as a series of legal challenges from involved parties.
But the telecom industrialists doubt if during this transit period to the NBTC era, both parties could meet the promise to bring about genuine fair treatment under the new government's policy for the industry, which has been known for its vested interests and politically linked business.
As part of the Supreme Administrative Court's ruling last September on the Thaksin asset seizure case, the former premier was said to have abused his power to benefit the Shin Corp empire founded by his family.
The Abhisit Vejjajiva government was also seen to be favouring True Corp, a charge the government fiercely denies.
One telecom industrialist said he wants to see the new government correct unclear rules and support the private sector to continue to move the industry forward, with no favouritism toward any telecom operator.
The Senate is expected to finish selecting 11 commissioners of the National Broadcasting and Telecommunications Commission (NBTC) this year. If it fails to nominate the full commissioner quorum within a certain period, the government can step in to appoint candidates to fill the NBTC quorum.
The Pheu Thai Party is of the view that once the 3G licences are available, the private concession holders will no more talk about the need to convert their existing concessions into a fairer licensing system. They will rush to bid for the licences and let their concession terms end naturally.
While waiting for the 3G licences, both parties have vowed to widen broadband access service via TOT and CAT Telecom, who have a plan to roll out the 3G networks nationwide.
An ICT industrialist said that instead of just trumpeting the campaigns of giving away free services to free telecom devices, both parties should come up with short- and long-term plans to drive the ICT industry forward.
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TOT, AIS strike roaming deal
By Usanee Mongkolporn
The Nation 2011-07-08
TOT and Advanced Info Service (AIS) have made a deal under which AIS customers would be given roaming access on the TOT 3G network for data, and TOT customers will get roaming access to the AIS network for voice and data services.
This deal should help AIS expand its 3G service so it can compete with True Corp, which has partnered with CAT Telecom.
A TOT source said both sides had agreed on the matter and were waiting for the deal to take effect soon. TOT apparently sent the draft contract to AIS as soon as it looked like Pheu Thai was going to take over the country's reins. Party leader Yingluck Shinawatra is the former president of AIS.
Negotiations for this deal have been going on since last year. The source said that under this deal, TOT would initially allow 60,000 AIS customers to use its 3G network in Greater Bangkok for data roaming, while AIS will allow 200,000 TOT customers voice access and 10,000 customers for data services.
Under the deal, both sides are allowed to provide roaming access to a million customers each.
AIS will pay TOT a roaming fee of 85 satang for each megabyte downloaded, while TOT will pay AIS a promotional rate of 60 satang per minute for subscribers using the AIS network for voice service, Bt1 per SMS and 85 satang per megabyte of data downloaded.
The TOT source added that AIS initially wanted to charge a roaming fee of Bt1.10 per minute, but later agreed to bring it down to the promotional rate. AIS will also give TOT 30 per cent of the revenue it earns from subscribers using the TOT network for roaming access.
The TOT source said this deal was not exclusively for AIS, but AIS had the right to ask TOT to refuse other telecom firms.
AIS wants its subscribers to use the TOT network for roaming access in order to ease the burden on its 3G-900 MHz network, which is serving voice and data services to more than 30 million customers. However, partners that provide the 3G service on TOT's existing network are against the deal because they are concerned AIS would compete with them to acquire customers.
AIS is also interested in partnering with TOT to provide 3G services on TOT's soon-to-be set up nationwide 3G network.
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DTAC in full gear for launching 3G service to the customers in August
The Nation 2011-07-22
Target a total of 2,000 base stations by 2012
Total Access Communication PLC (dtac), announced the readiness to launch 3G High Speed Data Packet Access (HSPA) service on 850 MHz band in August 2011. With 3G technology, dtac can provide greater benefits with a full portfolio of broadband mobile internet services for consumers in Thailand, marking a major step in reaching the goal to become the country's best data network operator.
Jon Eddy Abdullah, Chief Executive Officer (CEO) of dtac said "the launch of dtac 3G service will enable us to better address the fast growing demand for high speed broadband and mobile internet in Thailand. We believe that customers will enjoy a full range of benefits from high speed communication services as well as a great deal of new innovative solutions that will follow. 3G service is a crucial factor for dtac to better address customer's demand and to become number one leader in the wireless data service segment"
dtac has previously committed to invest Bt1.2 billion for the network upgrade for 3G service up to 1,220 base stations and currently completed the initial network upgrade in Bangkok. Starting from July 25, the company will provide a "3G service quality test", to its employees, in order to ensure the best customer experience when the service is fully launched in August. The further network upgrade, covering entire Bangkok and several major provinces, will be continue and expected to be completed within this year. dtac 3G service will be initially available in Bangkok in the middle of August 2011.
"We plan to continue investing in the best technology for our customers with a target of 2,000 3G base stations within 2012, a further investment of THB 750 million for additional 780 base stations in order to provide 3G service in total of 40 provinces," said Abdullah.
dtac has marked an important step to finally launch 3G service and to take another step toward the no.1 position in the data service arena in the near future. With a strong endeavor to deliver the best service quality for customers, dtac will launch the "Life network", an integrated campaign that governs the core value of all product and service offerings. More details about dtac's "Life Network", campaign will gradually come out soon through various marketing communication channels.