Thailand's Embarrassing Internet: Hutch Drops CAT-CDMA Merge

[george]

Hutchison drops sale plan after CAT makes ‘low’ offer

By Usanee Mongkolporn

The Nation

Published on November 17, 2010

Two different issues about 3G emerged yesterday, with different connotations on benefits to consumers.

First, Hong Kong’s telecom firm Hutchison Telecom has dropped a plan to sell its cellular network in 25 provinces to CAT Telecom, because of the proposed low price. Second, True Corp said in a filing to the stock exchange that it was exploring business opportunities after the cancellation of 3G bidding, implying ongoing discussion of True taking over Hutch’s CDMA (code division multiple access) network and developing it for third-generation wireless broadband service.

In another development, the CAT board yesterday gave the nod in principle to TrueMove and Total Access Communication (DTAC) to launch commercial 3G service on the 850-megahertz spectrum, which would pave the way for the new service on the existing networks.

Still, as legal interpretation is pending on this, DTAC considers this a time-buying strategy and plans to lodge a complaint over CAT’s slow decision for the service upgrade.

CAT chief executive officer Jirayuth Rungsrithong said yesterday that Hutchison officially informed the agency that the price of the 25-province network was maintained at Bt7.5 billion. As suggested by Information and Communications Technology Minister Chuti Krairiksh, CAT wanted to lower the price to Bt4 billion.

To Jirayuth, this left CAT to come up with a new business plan for the board’s consideration next month. One option is to continue investing in its CDMA business, while the other is to switch from CDMA technology to 3G HSPA (high-speed packet access) wireless broadband technology.

Jirayuth said he had no idea whether True Corp was in talks with Hutchison to buy its CDMA network too. He is doubtful what benefit True would gain from the purchase, given that the marketing contract CAT granted to Hutchison-CAT means it could use the network to provide CDMA service only.

While CAT is to go on its own course to upgrade its network to facilitate 3G services, the board also gave the nod in principle for its concessionaires �" TrueMove and DTAC �" to launch commercial 3G service on the 850MHz frequency.

However, Jirayuth said the board had asked the state agency to consult with its legal expert whether the commercial launch could be made without waiting for permission from the state-private joint committees founded under the 1992 Public-Private Joint Venture Act.

TrueMove and DTAC have offered the 3G-850MHz service on a non-commercial trial basis under CAT consent.

DTAC asked for the CAT board’s permission to upgrade 100 base stations to provide the service last April, but the board allowed it to upgrade only 36 bases in May. DTAC asked for its approval to upgrade an additional 1,220 bases last December.

Thana Tienachariya, head of corporate affairs and strategy for DTAC, said the company would file a complaint to Prime Minister Abhisit Vejjajiva, the Finance Ministry and the ICT Ministry this week on CAT’s slow progress in allowing it to upgrade the additional 1,220 base stations to provide 3G-850MHz service, up from the present 36 bases.

He said DTAC had upheld good governance, so it had no other way to urge CAT to speed up the consideration process.

At a glance

- CAT chief executive officer Jirayuth Rungsrithong said Hutchison officially informed the agency that the price of the 25-province network is being maintained at Bt7.5 billion. As suggested by ICT Minister Chuti Krairiksh, CAT earlier wanted to lower the price to Bt4 billion.

- Jirayuth said he had no idea if True Corp is in talks with Hutchison to buy

its CDMA network too. He is doubtful what benefit True would gain from the purchase.

- While CAT is to go on its own course

to upgrade its network to facilitate 3G services, the board has also given the nod in principle for its concessionaires TrueMove and Dtac to launch the 3G service on the 850MHz frequency.

-- The Nation 2010-11-17

[george]

Embarrasing - Definition

em·bar·rass

   [em-bar-uhs]

–verb (used with object)

1.

to cause confusion and shame to; make uncomfortably self-conscious; disconcert; abash: His bad table manners embarrassed her.

2.

to make difficult or intricate, as a question or problem; complicate.

3.

to put obstacles or difficulties in the way of; impede: The motion was advanced in order to embarrass the progress of the bill.

4.

to beset with financial difficulties; burden with debt: The decline in sales embarrassed the company.

[CMX]

Embarrassing -

Not at all. We are seeing here an ongoing struggle for great power and wealth. Ever since the last government, the military as well has been doubtless been kept informed about who says what. If you own stock in other than CAT, you must be biting nails.

[smiling mantis]

Anybody see any practical downside to using CAT CDMA from all of this? I was considering trying this given the praise TV members have (mostly) lavished on the service. But did I read this right, that they were considering implementing 3G by using the frequencies reserved for CDMA now?

[asiawatcher]

Embarrasing - Definition

em·bar·rass

   [em-bar-uhs]

–verb (used with object)

1.

to cause confusion and shame to; make uncomfortably self-conscious; disconcert; abash: His bad table manners embarrassed her.

2.

to make difficult or intricate, as a question or problem; complicate.

3.

to put obstacles or difficulties in the way of; impede: The motion was advanced in order to embarrass the progress of the bill.

4.

to beset with financial difficulties; burden with debt: The decline in sales embarrassed the company.

Nice one George - unusual from you and well said.