Thailand's TAC Unable to Launch 3G Services Until 2009

Published on: 5th June 2008

Thailand's Total Access Communication (TAC) says that it will not be able to launch its 3G network until early next year at the earliest due to regulatory problems. The company had formed a partnership with CAT Telecom to deploy a 3G network on its existing radio spectrum but says that its partner has not yet approved the plan. CAT Telecom is state owned.

CAT Telecom executives declined to explain the reasons for the delay.

The country's largest operator, AIS has launched a 3G network by reusing its existing GSM900 spectrum - but its coverage is very limited and the operator is waiting for the regulator to release licenses in the more conventional 2.1Ghz spectrum before rolling out the network. The company has set aside US$600 million for the first phase of 3G mobile phone services, and a further expansion to Hua Hin, Chon Buri and Phuket is also proposed - but only if customer interest supports it.

The regulator, the NTC expects to launch tenders for both 3G and WiMAX licenses around August this year. The NTC is expected to set a reserve price of US$200 million for the smaller of the available 3G licenses when they are eventually awarded. The final report from outside consultants, InterConnect Communications is understood to have recommended that four licenses are offered by an auction method.

If the recommendations are accepted, three of the licenses would come with 10Mhz of spectrum and a reserve price of US$200 million - and a single license with 15Mhz of spectrum with a reserve price of US$300 million.

Figures from the Mobile World database show that TAC ended the first quarter of this year with some 16.7 million subscribers and was placed second in the market behind AIS.

 

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