CAT keen to keep some Truemove spectrum

This is part of CAT’s post-concession network and spectra management plan, which it has already submitted to the ICT Ministry for forwarding to the Cabinet.
The National Broadcasting and Telecommunications Commission (NBTC) is eager to reclaim the whole 1,800MHz spectrum from CAT for auctioning to provide 4G broadband cellular service. The watchdog is expected to finish by next month its plan to deal with the ends of the TrueMove-DPC concession.
CAT chief executive officer Kitisak Sriprasert said last week that CAT hoped it could keep some of its spectra until the end of its telecom licence in 2025 to serve the government’s Smart Thailand policy involving the use of ICT technology to serve the public. The spectra will also be used to provide 4G-Long term Evolution (LTE) service.
Article 83 of the Frequency Allocation Act allows the NBTC to specify the time periods for the return of spectra by all state agencies, but it also says the watchdog has to take into account their need to hold the spectra for further use.
ICT Minister Anudith Nakornthap said he has yet to see CAT’s network management plan but believes it could work out an appropriate plan. The ministry will discuss with the NBTC again if CAT could keep some spectra.
Besides part of the 1,800MHz, CAT needs to keep the 850MHz spectrum and part of the 1,800-MHz spectrum of Total Access Communication (DTAC) for a long period to serve Smart Thailand and provide wholesale 4G services. DTAC’s concession will expire on September 15, 2018.
Under its concession management plan, if it can keep part of DTAC’s 1,800MHz spectrum, it has a plan to spend Bt27.77 billion on the wholesale 4G business. Part of the budget is for installing 14,000 4G base stations. CAT also needs the entire 10MHz bandwidth of DTAC’s 850MHz spectrum to provide domestic roaming to NBTC’s 3G licensees. DTAC uses this 850MHz spectrum to provide 3G service under its concession from CAT.
CEO Kitisak said CAT was interested in developing a wholesale 4G service on the 1,800MHz spectrum using its own cashflow. The state enterprise has no problem investing in this business. It only needs to ask for approval from state authorities.
CAT sees several scenarios in regard to its attempt to keep the “concessioned” spectra:
In the best case, it would be able to keep TrueMove’s spectrum band until 2025 to support TrueMove customers after the concession ends. It would keep DPC’s spectrum for a few months to serve DPC’s 80,000 customers after the concession ends and to provide a roaming service before returning the band to the watchdog.
In the “base case”, CAT could keep DPC’s band until 2016 and TrueMove’s until 2018 before having to return the frequencies to the watchdog.
And in the worst case, CAT |would have to return all its spec-|tra to the NBTC once each of its |concessions end. CAT would have |to rent or sell networks trans-|ferred to it by TrueMove and DPC after their concessions end. CAT |will sell only the electronics equipment part of the networks, which will show a book value of Bt6.16 billion as of December 30. Of that, Bt5.20 billion is TrueMove electronics equipment.
CAT and TOT, which are wholly owned by the Finance Ministry, have to make a big change to survive the huge loss of cellular concession revenue. Starting in 2014, they will also have to pass their concession revenue to the NBTC, which will transfer the funds to the state under the Frequency Allocation Act.
CAT’s board has already approved a restructuring plan, 2013-17 financial performance improvement plan and a plan to manage the networks and spectra under the concessions it has granted.