Thai Advanced Info Inks $120 Million Deal To Expand Network

BANGKOK -(Dow Jones)- Thailand's Advanced Info Service PCL (ADVANC.TH) said Thursday it has signed a $120 million contract with five telecom suppliers to expand and upgrade its network in the first half of 2006.

Under the contract, the country's largest mobile-phone operator by all measures will buy equipment and logistic services from Ericsson, Huawei Technologies, Nokia, NEC and Siemens.

"The equipment to be purchased will be set up and ready to enhance our services by July," Vikrom Sriprataks, Advanced Info's chief technology officer, said at a press conference.

He said the company has set aside THB16 billion ($400 million) for network investment this year, of which THB8 billion will likely be spent in the first half.

Including this contract, Advanced Info has invested around THB6.5 billion so far this year as part of the company's plan, announced late last year, to spend up to $450 million on its network in 2006.

The company invested $250 million in the network last year.

"The expected increase in network investment is in response to higher demand for cell phone usage," Vikrom said.

-By Rattaphol Onsanit, Dow Jones Newswires; 662-266-0744; rattaphol.onsanit@dowjones.com

-Edited by Leslie Shaffer

(END) Dow Jones Newswires "

Posted to the site on 30th March 2006