3G network takes step forward

ANALYSIS: TOT gives telecom giants a head start in developing 3G infrastructure as state regulator takes shape

Thailand's mobile phone sector has taken a small step forward after state-owned TOT Plc awarded a group led by Samart Telecom and Loxley a 16.29 billion baht contract to build a third-generation wireless network.

High-speed telecom services are expected to be available in 13 provinces within six months, and nationwide within one year.
The move came a day after True Move, the country's third-largest mobile operator, signed contracts with CAT Telecom to extend the term of its own concession agreement as well as expand into 3G services. True Move, a unit of True Corp, expects to offer nationwide 3G services within two years.
Demand for 3G has jumped sharply in recent years thanks to the popularity of smartphones such as Apple's iPhone or Research in Motion's BlackBerry handsets. New tablet PCs such as the iPad have also raised customer expectations for high-speed networks to gain access to the internet for multimedia and data applications.
But efforts to launch 3G networks that can transmit data several times faster than today's GSM systems have been delayed for years due to political  and regulatory infighting. The three major telecom providers _ Advanced Info Service, Dtac and True Move _ currently offer 3G services in limited areas under trial arrangements but cannot begin full commercial services without a licence.
But efforts to sell off 3G licences must wait until the formation of the National Broadcasting and Telecommunications Commission, a body that will replace the National Telecommunications Commission (NTC) as the primary regulator of the telecom sector. A planned auction of 3G licences by the NTC was scrapped at the last dhmoment late last year after a court challenge over the bid's legality.

SL Consortium wins 3G project

As expected, the SL consortium of Loxley-Samart-Nokia Siemens Networks-Huawei Technologies yesterday won the e-auction of the TOT project to establish a nationwide third-generation telecom network by bidding Bt16.29 billion, down 6.59 per cent from the state agency's budget for the project of Bt17.44 billion.

The other contender in the auction, the AU consortium of Advanced Information Technology, Alcatel-Lucent (Thailand) and United Communication Industry, bid Bt16.777 billion.
Of the four consortia that submitted bid documents, only these two were qualified by TOT to join the e-auction.
Information and Communications Technology Minister Chuti Krairiksh said he was not happy with the price, saying it should be lower.
A telecom-industry source said the winning consortium was expected to lower the price to about Bt16 billion in the cost-negotiation round.
The project will see TOT establish a nationwide 3G wireless broadband network on the 2.1-gigahertz spectrum. If things go as planned, TOT will launch the initial phase in major provinces in April before going countrywide in one year.
TOT acting president Noppanut Hutacharoen said the agency had conducted all procedures related to the e-auction transparently.
TOT e-auction committee chairman Anont Tubtiang said he was satisfied with the price. Anont, who is one of five contenders for the TOT presidency, added that the committee would submit the result for the acting president's approval on Monday and then to the TOT board for consideration. The agency is expected to award the contract in mid-February.
Samart Corp president Watchai Vilailuck said Samart would use Nokia and Huawei equipment and install the network in the Central, Eastern and Southern regions at a total cost of Bt10 billion. Loxley will use Huawei equipment and install the network in the North and Northeast, for a total cost of about B6 billion.