ICT claims there are irregularities in CAT Telecom, True Corp deals (Thailand)
According to reports, Anudith Nakornthap, ICT (Information and Communication Technology) Minister, said that Thailand’s Ministry has found irregularities in deals between state-owned CAT Telecom PCL and True Corp. PCL that paved the way for the two firms to offer third-generation mobile services. He added that the two companies failed to comply with the relevant legislation while signing the contracts.
He said that the ministry will send its findings to the state’s anti-graft body, which will decide whether to take legal steps. However, he said that the contracts are still binding until the case is filed and the court rules otherwise.
As per reports, True Corp. signed a 15-year deal with CAT Telecom in January 2011. The deal enabled True Corp to install a 3G network on CAT’s High Speed Packet Access network, in exchange for the right to resell the service via its Real Move unit.
TrueMove H deal declared illegal (Thailand)
The network resale deal between CAT Telecom and True Corp known as the True Move H’ 3G was declared illegal by a Thai senate. According to reports, the senate concluded that the deal was illegal mainly on the grounds of violations of three main laws in the deal agreement. The senate has sent the findings on the breach of law are forwarded to the counter corruption commission for due consideration.
Sources claim that as per Article 46 paragraph 2 of the Frequency Allocation Act B.E. 2553 (2010) transfer of frequency is not permitted however CAT as well as True Move violated the law. According to Telecom Business Act B.E. 2544 (2001) BFKT, a subsidiary of True, had no operating license issued from the regulator and as per the Public-Private Joint Investment Act B.E. 2535 (1992) the project estimate was more than US$ 32 million. However, it was presented to the Cabinet for approval as it was required under guidelines of the Act.
Despite of all the Senate findings, CAT has dismissed all the allegations. However, CAT Telecom’s request for dismissing the case, calling it as an unnecessary practice of investigation, was rejected by the counter corruption commission.
DTAC plans 3G network roll-out by 2013 (Thailand)
Mobile network operator DTAC has announced its plans to roll out 3G services across 940 districts by the end of next year. According to reports, Jon Eddy Abdullah, CEO, DTAC has said that they plan to become a leader in 3G service through a nationwide network expansion on the analogue 850-MHz frequency, covering 940 districts by 2013.
He added that DTAC will begin testing its 4G cellular broadband in Bangkok along with CAT Telecom by May. The operator has reportedly kept US$ 1.3 billion aside for the 3G network plans of which US$ 487 million will be required for a new licence.
Abdullah also claims that he expects the regulator to grant an LTE trial licence soon and plans to launch a brief trial network by May 2012. He added that they do not plan to launch a commercial LTE network as the 30 percent revenue share, under the current terms, negatively impacts the business case.
Abdullah states that they believe Thailand could have 3G and 4G commercial service simultaneously, which other countries are already developing. Further, he assures users that all network traffic problems will be resolved once the network upgrade project is completed.
He said that if they get a 3G licence on the 2100-MHz frequency, they plan a massive network expansion mainly in Bangkok and major provinces.
CAT Telecom plans to launch 3G services in January 2012 (Thailand)
CAT Telecom, the state owned telecommunications firm in Thailand, is reportedly planning to launch its 3G services under the brand name ‘My’ by January next year. According to reports, the operator is also planning to present a proposal to its board members, allowing concessionaires to buy back their mobile network before the expiration of the contract.
As per sources, the ministry of Information Communications Technology (ICT) has permitted CAT to draft its network sales plan. Reports reveal that TrueMove, DigitalPhone and DTAC are operating services based on concessions from the state owned operator. TrueMove had reportedly made an offer of US$ 318.4 million for its mobile network, which was considered to be less by CAT.
The concession contracts for TrueMove and DigitalPhone are expected to end in 2013 whereas DTAC’s concession contract expires in 2018, after which they will have to transfer their networks to CAT Telecom as per the build-operate-transfer agreement.
CAT and TOT to delay 3G wireless-broadband service launch due to floods (Bangkok)
CAT Telecom and TOT have reportedly postponed the launch of their 3G wireless-broadband services in Bangkok due to floods in the country. According to reports, CAT plans to launch its 3G wireless broadband service by next month, under the brand ‘My’, across provinces which have not been affected by the floods.
As per sources, CAT and True Corp group collaborated in order to develop the 3G-High Speed Packet Access (HSPA) service using the 850 MHz spectrum. Reports suggest that BFKT, a subsidiary of True Corp., had installed HSPA (High Speed Packet Access) network equipment for CAT.
Reports reveal that Anont Tubtiang, President, TOT said that the flooding has delayed the state agency’s rollout of its nationwide 3G network in some areas, prompting it to re-evaluate its plan to fully launch the service in 18 provinces this month.
Further, sources claim that TOT has already launched the service in some areas and also offers certain customers access to 3G services on AIS’s (Advanced Info Service) network while roaming outside its coverage area.
Thailand’s 3G plans may be delayed due to political reasons (Thailand)
Thailand’s plans to sell 3G licenses for wireless services may be delayed due to politics, as reportedly said by Wichian Mektrakarn, CEO, Advanced Info Service Pcl (AIS), the nation’s largest mobile operator. AIS along with Total Access Communication Pcl and True Corp. Pcl, had started offering limited 3G services earlier in the year.
However, as per reports, Mr. Mektrakarn has said that they would not like to invest more of their resources in the 3G network until the government auctions licenses and sets rules for operating the service. He further stated that he believes there is still some kind of conspiracy or movement to try to stop or delay 3G. He claims that there are still a lot of obstacles and anything can happen in Thailand at this moment. Wichian has reportedly said that the three private operators are counting on mobile internet to spur revenue from users of smartphones such as Apple Inc.’s iPhone and Research In Motion Ltd.’s Blackberry. Data revenue accounts for about 19 percent of Advanced Info’s total turnover.
The share price of all these operators witnessed a decline. While AIS share price fell down by 2.3 percent to US$ 4, Total Access went down 2.7 percent to US$2.29 and True Corp. slid 5.1 percent to US$ 0.09.
As per reports, True Corp., Thailand’s third largest operator plans to build a 3G network by 2013 in a venture with CAT Telecom, the state-owned company that runs Thailand’s international telecommunications infrastructure.
CAT selected to provide Wi-Fi to McDonald’s (Thailand)
CAT Telecom has been selected by fast food outlet McDonald’s to provide Wi-Fi. CAT will provide Wi-Fi services in 134 branches across Thailand.
This partnership is a significant step of the CAT and McDonald’s to provide to people of all ages with a modern lifestyle with CAT WiFi, wireless high-speed internet in 134 branches nationwide. Customers can surf internet and log in e-mail while enjoying with McDonald’s menu, a coffee or bakery items from Mc Cafe.
DPC seeks LTE testing permission (Thailand)
Thai mobile operator Advanced Info Service (AIS)’s subsidiary, Digital Phone Company (DPC) has reportedly asked its build-transfer-operate (BTO) concession issuer CAT Telecom for permission to test 4G Long Term Evolution (LTE) mobile broadband technology.
According to sources, DPC is planning to test LTE equipment from Huawei, ZTE and Ericsson. Each vendor will require permission from the National Telecommunication Commission (NTC) before carrying out the tests, to be applied for in parallel to DPC’s request to CAT.
It is also reported that DPC will set aside as much as 10MHz bandwidth for the 4G trial, out of its total 12.5MHz of allocated 1800MHz spectrum. The test will be run for 90 days on seven or eight base stations in Bangkok.
CAT grants permission to DTAC for commercial 3G service (Thailand)
CAT Telecom has given approval to DTAC to commercially launch 3G wireless broadband services in mid-March.
Telenor subsidiary DTAC, which offers services via a build-transfer-operate (BTO) concession with CAT, currently provides trial 3G W-CDMA/HSPA-based services in the 850MHz band.
Following two years of complaining that CAT had favored fellow BTO licensee True Move by permitting the latter to expand 3G trial coverage in December 2010 CAT’s board announced that DTAC could upgrade up to 1,220 base stations for pre-commercial 850MHz HSPA, up from an existing 36 sites.
Both this decision and the latest announcement are viewed from some quarters as an attempt to defuse criticism of CAT for January’s hastily arranged 14-year agreement with True Move to jointly market 3G HSPA-based services as part of True’s takeover of the ‘Hutch’ CDMA business (formed as a joint venture of CAT and Hong Kong’s Hutchison Telecom).
Thai finance minster defends handling of CAT-True deals
Thai Finance Minister Korn Chatikavanij has defended the fact that CAT Telecom’s 3G wholesale and resale contracts with True were not open for bidding by other parties.
Korn argued that the contracts followed on from an existing project based on a contract that CAT had with Hutchison.
According to reports citing Korn, the contracts are based on the frequency having been granted to CAT long ago. Though True replaced Hutchinson Telecom, CAT still maintains the frequency’s ownership. As the project was based on a contract CAT had with Hutchison, the State Enterprise Policy Office did not ask CAT to make bidding for the open contracts.
