KOMSAN TORTERMVASANA
Sustainability of state telecom the goal
CAT Telecom must create a strategic operating scheme for its fledgling fourth-generation (4G) mobile business as part of a turnaround plan to generate a sustainable new revenue stream, says a top official.
The state telecom has been urged to come up with a viable plan by the State Enterprises Policy Commission, or superboard, said Col Sanpachai Huvanandana, CAT's acting president.
"Providing commercial 4G service will be a factor that influences the development of our mobile business this year," he said.
CAT is on the verge of upgrading 20 megahertz of the 1800MHz spectrum - the unused portion of DTAC's 1800MHz spectra for voice service - to provide 4G wireless broadband.
The enterprise is also working with another concessionaire, True Move, to upgrade the existing 3G network on the 850MHz frequency for 4G purposes after winning approval from regulators last November.
"We expect to submit our 4G business plan to the superboard next month," Col Sanpachai said.
CAT's 4G offering is intended to serve skyrocketing mobile data traffic and create a new revenue stream for the enterprise.
The state telecom is also in talks with JAS Mobile Broadband on a tradeoff agreement.
It wants to use part of JAS's 4G network on the 900MHz spectrum under a roaming deal in exchange for letting JAS rent CAT's 1,000 telecom towers to ease installation of JAS's 4G base stations.
JAS is a newcomer in Thailand's mobile market after winning a 900MHz licence to provide 4G service.
It is preparing to pay the first half the estimated real spectrum value within 90 days of last month's auction, with another 25% of spectrum value to be paid this year and the final 25% next year.
The company's initial plan is to launch 4G commercial service in this first quarter.
CAT may approach True Move about using part of the company's 2100MHz spectrum to add more capacity to CAT's 4G network.
"Providing 4G on both high-band 1800MHz and low-band 850MHz networks will enable us to provide more efficient and effective services," Col Sanpachai said.
CAT expects to launch its 4G commercial service by July.
The state telecom achieved consolidated revenue of 43.5 billion baht in the first 10 months of last year, an increase of 3.5 billion from the same period in 2014, for a net profit of 3.2 billion, an increase of 1.3 billion.
It expects a 2015 net profit of 3.4 billion baht on revenue of 53.5 billion, Col Sanpachai said.