Regulator likely to grant permission for CAT Telecom deploying HSPA base stations (Thailand)

­It has emerged that CAT Telecom, the state-owned operator in Thailand has sought permission so that the telecoms regulator allows them the installation of more than 5,300 HSPA powered base stations. The telecom operator is looking to build a wholesale 3G network.

It is expected that the operator will be granted permission by the mid August by latest. In addition, the regulator is known to have voted in support of approving procedures for carrying out processes at a fast pace, of granting import licenses for telecoms equipment. The import licenses could be issued within three days by way of the new procedures, once implemented.

The roll out plan also points at the network being completed by the close of the year; eventually, to cover 70 % of the population.

According to sources, CAT Telecom’s request to deploy 5,326 HSPA base stations across the nation has already been received by the regulator.

NESDB rejects CAT’s 3G investment proposal (Thailand)

National Economic and Social Development Board (NESDB) of Thailand has rejected CAT’s investment proposal.

CAT was panning to invest US$395.77 million on launching a nationwide 3G network. However, CAT stated that its wholesale and resale 3G service will be launched on schedule in Q2, despite the rejection.

According to CAT, its existing tower and transmission infrastructure is adequate to provide the service presently. Should it run out of capacity in the future, CAT could lease facilities from other operators. As part of the 15-year capex plan, CAT will build the core network for its own provisioning of 3G service on a retail basis and for leasing to other firms to retail the service. The plan calls for the roll out of 15,000 telecom towers, up from 1,900 currently. CAT also plans to buy 1,400 towers from BFKT from True.

NESDB approval is pending a reply from the Finance Ministry on whether the project will be subject to the Public-Private Joint Venture Act. The Board also asked the ICT ministry for an opinion on the project.

CAT may take back petition over 3G licence auction (Thailand)

CAT, which operates in Thailand, may reportedly drop its petition against the regulator over the 3G licence auction in exchange for approval of 3G equipment imports. The company’s directors are scheduled to discuss the issue shortly.

According to reports, the acting National Broadcasting and Telecommunications Commission (NBTC) has been delaying the import of 3G equipment as it needs a ruling from the Constitution Court on its authority to improve such imports.

Last year in September, the Central Administrative Court had stopped the 3G spectrum auction planned by the regulator as it ruled that the NTC does not have the power to grant the licences. 3G licences must be issued by the NBTC, which currently in the process of being established. The NTC has since stopped all approvals for network equipment imports for 3G as well.

According to CAT president Jirayuth Roongsrithong, the company’s legal team is studying the possibility of withdrawing the petition as delays in imports could hold up the start of 3G services by CAT.

True offers to sell CDMA network to CAT (Thailand)

CAT Chief Executive Officer Jirayuth Rungsrithong has stated True Corp recently proposed to CAT Telecom that it should buy the 1,400 telecom towers in its Code Division Multiple Access (CDMA) network in 25 provinces for US$98.97 million.

The proposal is part of a deal signed by CAT and True Group in January on their collaboration to develop the 3G service.

As per Jirayuth, CAT would first see if the Bt3-billion offer was reasonable, adding that the proposal had taken into account the cost of tower depreciation. A new telecom tower costs around US$ 164,960.

BFKT (Thailand), a company that is now part of True Group, owns the CDMA network in 25 provinces.

CAT to sign 3G roaming MoU with TOT (Thailand)

CAT Telecom, a mobile operator in Thailand, has signed a 3G roaming MoU with TOT. According to CAT Chief Executive Jirayuth Rungsrithong, both the companies will be launching a 3G network (TOT on th­e 2.1 GHz band and CAT on th­e 850 MHz band) and have agreed to enable users to roam on each oth­er’s network for voice and data services.

As per Jirayut, TOT’s 2.1 GHz spectrum was good for use in major cities with high-rise buildings, while CAT’s 850MHz spectrum was appropriate for th­e provinces. They would complement each oth­er by joining forces. TOT and concessionaire AIS are also in talks to expand th­eir roaming agreement. Currently a maximum of 50,000 TOT 3G users are allowed to roam on AIS’ voice network.

TOT’s demand against AIS dismissed (Thailand)

An arbitration panel in Thailand has dismissed TOT’s request for compensation from AIS in th­e companies’ excise tax dispute. TOT had demanded US$1.03 billion from private operator Advanced Info Service (AIS) as th­e firm deducted excise tax from th­e revenues it shared with its concession parent TOT. According to the panel, AIS had not violated th­e concession contract.

According to AIS, the five-member panel ruled to dismiss the case, which means AIS, does not have to pay the amount. The panel reasoned that AIS does not breach related contracts.

The administration of former Prime Minister Thaksin Shinawatra imposed the telecom excise tax law in 2003.

As per the law, fixed line telecom operators and cellular operators would pay 2% and 10%, respectively out of concession fee to the Excise Department before paying the rest to TOT or CAT.The Surayud Chulanont government reduced the telecom excise rate to zero in 2007.

In 2008, TOT demanded AIS to pay the amount deducted as the excise tax during 2003 to 2007, plus monthly interest of 1.25%. This prompted AIS to bring the case to the arbitration panel.