Telecom Operators Step Up Work On 3g

[george]

Operators step up work on 3G

Firms press ahead, but stock analysts not convinced of current viability

BANGKOK: -- Telecoms have stepped up their development of third-generation cellular service amid doubts among stock analysts about the viability of providing such services on existing spectra.

A source at TOT said last week the state telecom enterprise would partner with its concession-holder Advanced Info Service (AIS) today to offer future convergent and 3G broadband wireless services on their networks.

After TOT and AIS sign a memorandum of understanding on collaboration today, AIS will test the 3G system on its 900MHz spectrum then on the 1,900MHz spectrum of Thai Mobile, the joint cellular operator of TOT and CAT Telecom. The 1,900MHz spectrum is the global platform for 3G.

"In line with their initial discussion, they will not compete in overlapping areas: AIS will leave fixed lines to TOT, and TOT will leave wireless to AIS," the TOT source added.

Many operators believe the new government will support their planned 3G network and service investments to seek new revenue sources and boost the flagging economy in the process.

The estimated costs of rolling out a 3G network are US$100 million (Bt3.3 billion) for Bangkok alone and $1 billion-$2 billion for the whole country.

A telecom-industry source said AIS wanted its backing for the telecom pool to be an ice-breaker for talks with TOT on exiting its concession. TOT wants to promote its network-pool concept, aimed at maximising use of the country's telecom infrastructure.

Total Access Communication (DTAC) and CAT Telecom have completed a joint test of 3G on CAT's 850MHz spectrum. They are discussing the possibility of forming a joint venture to develop a commercial 3G service.

Cellular operators can offer 3G on their existing spectra without permission from the National Telecommunications Commission (NTC).

According to CIMB-GK Securities (Thailand), the planned joint venture of CAT and DTAC for 3G serves as "Plan B", in case the NTC's licensing of 3G is delayed significantly.

Joint ventures with state-owned agencies are not the preferred way, given the red tape involved, but may be worth trying if the issuing of 3G licences is deferred.

The securities house also questions if DTAC's plan to use 850MHz for 3G, instead of the global standard 2.1GHz, is practical, given the lack of suitable handsets. The exceptions are Australia and some South American countries, where 3G is deployed on 850Mhz.

DTAC chief executive Sigve Brekke said DTAC was serious about the plan, which had its pros and cons.

The 850MHz spectrum is better than 2.1GHz for wide outdoor coverage and good indoor penetration. The 2.1GHz frequency is good for handling bigger traffic volumes, but the licence may be expensive to get.

One telecom analyst doubts if 3G demand here is enough for the cellular operators to quickly recoup their investment. The country has over 50 million users, most prepaid.

But cellular operators have run out of patience waiting for the NTC to grant 2.1GHz licences, which would also let them escape from state concessions and pay a lower licensing fee.

If they get the new licences, they will likely focus on acquiring customers for the new licences while shifting existing customers to the new licences as well so that they can reduce their concession payments to TOT or CAT.

The concession fee costs them about 25 per cent of their total revenue, while a major licence hits them for only about 3 per cent of revenue.

The NTC has been reluctant to allocate new frequencies pending the establishment of the National Broadcasting and Telecommunications Commission (NBTC). The new government will look into the draft amendment of the frequency-allocation law, which mandates the NBTC's creation.

This week, however, the NTC will hire UK consultant Interconnection Communication for Bt14 million to draw up the 3G licensing terms.

-- The Nation 2008-01-21

[Retired2]

Thank you for posting this article, George.

Every time I read anything on 3G, I have to wonder, what does it matter to me??

Does it mean that I will possibly get better Cell-phone service? Does it mean that

I could potentially get better internet connections?

Any information would be appreciated. At least I will then know what I am reading about.

Thank you ! ! !

[stumonster]

3G is marketing speak for high speed wireless data protocols - the so called 3rd generation

EDGE , EVDO HDSPA etc

http://en.wikipedia.org/wiki/3g

[billd766]

3G is very good. Just remember that you will probably have to buy a new mobile to make the most use of it as the mobiles in Thailand are 2 or 2 1/2 G.

[Retired2]

This is wonderful news. (I think)

I have a very slow and unstable ADSL from TOT. I use Hutch Airplus as a back-up, which is also very slow.

If I am understanding this correctly, my wireless service (in the form of Hutch) will probably be getting

astoundingly better.

Surprised this topic has not generated a LOT more interest ! ! ! !

[cali]

Oh dear, just when the rest of the world is heavily investing in wimax adoption, only then does Thailand decide to invest in the obsolete 3G on the wrong spectrum. Maybe after laptops are wimax enabled and voip phones are the rage people in Thailand may ask what that is and wonder why they are locked in a more limited, expensive, and slower standard than the rest of the world is using.