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Business >> Monday August 18, 2008
 
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AIS rattles sabre over DTAC 3G investment

KOMSAN TORTERMVASANA

Advanced Info Service (AIS) is ready to expand its third generation (3G) mobile phone services to cover all areas if rival DTAC intends to offer 3G services as an exclusive option.

DTAC won approval last week from the National Telecommunications Commission (NTC) to install high-speed packet access (HSPA) technology on its existing network to provide third-generation service using the 800 Megahertz bandwidth.

DTAC's plan involves investing five billion baht to install base stations in Bangkok, Phuket and Chon Buri, and to introduce commercial services within one year.

AIS president Wichian Mektrakarn said that DTAC should be cautious in implementing its plan and not hurry to use 3G HSPA as a weapon to beat AIS, the local cellular market leader with more than 25 million customers.

He said that if DTAC invested heavily in 3G to gain an advantage over AIS, then AIS would compete in the same areas.

This means the technology race could become capital-intensive, as it has been previously, and all investments would have to be transferred to the state under existing build-transfer-operate concessions with state telecom enterprises, he said.

''If we were in their position, we would not commit so much so early as it is just a gimmick right now because the market has to be educated first. The real target remains unknown,'' he said.

Mr Wichian said that 3G service wouldn't receive a quick market response and therefore operators should proceed step-by-step with marketing and educating their customers, pending the approval of 3G licences on the 2000 MHz bandwidth that would come with new terms.

He admitted that AIS was at a disadvantage to DTAC on the bandwidth used to provide 3G service because the frequency slot AIS used was the same that it uses for 2G service.

But AIS is considering enhancing co-operation with TOT Plc and its subsidiary Thai Mobile, which holds the 1900 MHz bandwidth.

He believes DTAC cannot deploy HSPA quickly in Bangkok because it is a very congested area with plenty of base stations, and the W-CDMA equipment needs complicated and time-consuming adjustments.

An industry source said that AIS was seeking 5 MHz of bandwidth from Thai Mobile to upgrade its network and provide 3G and was ready to abide by the concession terms.

DTAC chief commercial officer Thana Thienarchariya, meanwhile, welcomed the NTC's approval of its 3G request, saying it came at a very appropriate time as the country needed investment in megaprojects to stimulate economic growth.


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