Thailand's Advanced Info Service (AIS) has blamed a lack of radio spectrum for the lack of interest in its test 3G network in Chiang Mai which was launched a couple of weeks ago. The company has not been able to promote the service effectively and said that it has signed up just 100 new customers to the 3G network. The 3G network is one of the first to run in the 900Mhz spectrum band as the country has not released any licenses for the more conventional 2.1Ghz bands.
AIS says that it plans to expand the service to Bangkok in mid-June. The company has however only been allowed by the National Telecommunications Commission (NTC) to install 30 base stations for its 3G network. The company has already set aside US$600 million for the first phase of 3G mobile phone services. A further expansion to Hua Hin, Chon Buri and Phuket is also proposed - but only if customer interest supports it.
AIS President, Wichian Mektrakarn told the Bangkok Post that the company's technicians were concerned that heavy data downloads by up to 5,000 users would be beyond the network's capabilities. Mr Mektrakarn said operators did not expect 3G service on the existing spectrum to be very profitable. When the 2100 MHz spectrum is permitted, then all operators would move more aggressively.
AIS and rival operators are waiting for the regulator to award conventional 3G licenses in the 2.1Ghz bands during the first half of this year. However, as 3G phones support viable video streaming, there have been disputes as to whether the National Broadcasting Commission (NBC), which overseas TV services should be involved in the process. The argument seems spurious as it has been "technically" possible for even analogue phones to stream video services, albeit at very slow refresh rates.
Figures from the Mobile World report that AIS ended last year with just over 24.1 million subscribers - representing a dominating market share of 45.5%. AIS Chief executive Vikrom Sriprataks has previously said that the country's population penetration level is expected to reach 100% during 2008 with 64 million subscribers, up from 52.3 million by the end of last year.
On the web: Bangkok Post - Mobile World
Posted to the site on 20th May 2008