CAT Telecom Sees Its Future In Broadband Data Services

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CAT sees its future in broadband data services

BANGKOK: -- CAT Telecom is drawing up this year's business-direction plan with the focus on promoting wireless and fixed line-based broadband data services.

CAT chief executive officer Jirayuth Rungsrithong expects the plan to be finalised in the next couple of months, adding that the state agency's future lies in broadband data services.

One highlight is its move to develop a fibre-to-the-x (FTTx) broadband-Internet service in greater Bangkok at a cost of about Bt6 billion.

FTTx - in which x represents a home, building or any other premises - involves connecting a customer with a direct fibre-optic link via a service provider, in order to receive voice and data services.

CAT's project is awaiting Cabinet approval.

On the wireless side, CAT has recently submitted to the Information and Communications Technology Ministry its plan to purchase Hutchison Telecom's business in Thailand. This includes Hutchison's Code Division Multiple Access (CDMA) 2000 1-x cellular network in 25 provinces.

If the ministry gives its approval, CAT will submit the plan to the National Economic and Social Development Board, and then to the Cabinet.

CAT and Hutchison Telecom have been in talks for some time on a possible deal. Currently their joint venture Hutchison-CAT Wireless Multimedia markets a cellular service on the CDMA network in 25 provinces under the Hutch brand.

Hutchison-CAT leases the network from BFKT, a wholly owned subsidiary of Hutchison Telecom.

CAT also provides a separate cellular service on its own CDMA network in the other 51 provinces. It wants to combine the two networks to provide a nationwide service.

CAT has reportedly proposed to buy Hutchison Telecom's business and CDMA network for a maximum of Bt7.5 billion.

If the Cabinet approves its plan, CAT will hold early talks with Hutchison Telecom to finalise the price. Jirayuth said the complete integration of the two CDMA networks would take about six months.

He said the business-direction plan also included the state agency's plan to develop a CAT television business, and it would seek partners to provide content and distribute satellite dishes.

However, he declined to elaborate on this.

CONCESSION CONVERSION

In a separate matter, Jirayuth said Finansa Securities had proposed becoming CAT's financial adviser for its plan to convert private mobile-phone service concessions.

CAT earlier said it was preparing a number of conversion options, including converting the concessions into shares in the concession holders or into leases of its networks.

CAT executive chairman Krisda Kaveeyarn was recently appointed chairman of the committee founded under Article 22 of the Public-Private Joint Venture Act to oversee the agency's private telecom concessions.

Krisda is expected to push the committee to speedily consider CAT's requests on behalf of Total Access Communication (DTAC) and True Move, seeking permission for them to launch commercial 3G wireless broadband services using their existing 850MHz spectrum bands.

The two cellular operators, which both hold CAT concessions, currently provide 3G service on these bands on a non-commercial trial basis.

-- The Nation 2010-02-15

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