Bangkok Post (16 November 2007)
DTAC, the country's second largest mobile operator, has announced a strategic U-turn in its third-generation mobile plans with a possible eight-billion-baht plan to upgrade existing 2G networks to 3G under the concession rights.
The company also plans to provide affordable mobile broadband service over SIM cards, aircards or mobile phones, with the aim of becoming a leading wireless service provider.
The strategies signal a push into the company's 3G and wireless broadband businesses after saying earlier that it would not rush to invest in high-speed data-rich communications.
Chief executive Sigve Brekke said DTAC was now considering an alternative second-tier approach toward 3G investment since the National Telecommunications Commission (NTC) is not issuing 3G licences.
Under the development scheme, he said, DTAC would upgrade existing 2G switching equipment to WiMax and WiFi in Bangkok and major cities in the provinces at the first stage.
The company would then gradually upgrade Edge networks to high-speed download packet access (HSDPA) nationwide.
''Upgrading one base station costs one million baht. DTAC now has 8,000 base stations,'' Mr Brekke said during the GSM Asia Congress in Macau.
''We are now in talks with Nokia and Siemens for upgrading. A decision would be made in the second half of 2008.''
Mr Brekke said the 1800 and 900 frequencies were technology-independent concessions, and that DTAC and AIS had the right to upgrade their existing 2G base stations from analogue to digital GSM, GPRS, Edge and 3G, respectively.
''It would be a waste if we continue waiting for new licences since the NTC still has an unclear policy,'' he said.
Even network upgrading would require less investment than building new ones, Mr Brekke said. He added that he would prefer to apply for a 3G licence with a 2.1 frequency because it would not require paying heavy regulatory fees to its concession provider CAT Telecom, and would be subject to only 7% for licensing fees.
Meanwhile, he said DTAC would continue pressing the NTC to grant licences.
Mr Brekke insisted that DTAC would continue to focus on voice-based services in 2008 with the goal of boosting mobile penetration to 100%, up from an expected 80% by the end of this year.
''We aim to increase the penetration rate to 150% over the next few years.''
He also said that DTAC is preparing to provide affordable mobile broadband services next year to avoid saturated voice services.
The company plans to apply for an international internet gateway (IIG) licence and a fixed-line licence with the NTC. Commercial services would be in the first half of 2008.
DTAC, in co-operation with GSM Association and Microsoft, is surveying 13 countries including Thailand to gather information for wireless broadband demand.
DTAC has 3.5 million mobile internet users out of a total of 16 million subscribers. Data revenue accounted for 10% of total earnings. The country's penetration for the internet is 12.5%, compared with 52% in Malaysia. The figure is expected to reach 50% by 2012, fuelled by 3G WiFi and WiMax, said Mr Brekke.
DTAC shares closed yesterday on the Stock Exchange of Thailand at 38.75 baht, down 25 satang, in trade worth 37.66 million baht.
Friday, November 16, 2007
DTAC announces 3G upgrade
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