DTAC's dilemma; how to satisfy growing 4G service demand

But it remains to be seen if the company can address this demand soon.

DTAC chief executive officer Jon Eddy Abdullah said the company projected the number of its subscribers with 4G-capable devices would reach around one million by December this year, out of a combined 27 million 2G and 3G subscribers. These projected one-million customers are its potential 4G users. He claimed the customers are asking for a 4G service and the company wants to respond to this pent-up demand.

DTAC has two options to address this opportunity. One, is it wants to transfer its unused 25MHz of 1800MHz spectrum to the National Broadcasting and Telecommunications Commission (NBTC), if the watchdog will put this amount to auction, together with the other 1800MHz bands of TrueMove and Digital Phone Co (DPC). TrueMove-DPC concessions under CAT Telecom expired on September 15. The NBTC intended to auction the TrueMove-DPC spectrum bands next September. The 1800MHz can be used to develop the 4G service.

The second option is for DTAC to develop the 4G service on this idle band under its existing concession under CAT. The company believes that this could be done as it was the same principle when CAT permitted DTAC a few years ago to use its 850MHz to provide the current 3G service under the concession.

DTAC has already informed all related parties of these options, including the NBTC, ICT Ministry, and CAT.

However, it remains to be seen if DTAC can achieve either of these two options. ICT Minister Anudith Nakornthap said that it might not be possible for DTAC to transfer this idle spectrum for NBTC auction as it would cause CAT to lose an opportunity to generate income from this band in the future. 

If DTAC wants to use this idle spectrum under the concession, DTAC has to persuade CAT that there is a need to maximise this spectrum, the minister added.

Recently, NBTC telecom committee chairman Settapong Malisuwan said it was not within the commission’s purview to permit DTAC to use this idle spectrum for 4G, but DTAC had to ask for CAT’s consent on this matter.

CAT has also sought all means to use DTAC’s idle spectrum band to provide its own 4G service in the future to generate its own revenue.

The 2010 Frequency Allocation Law obliges state concession owners to return the spectra, after the concession ends, to NBTC for reallocation by auction only.

The Frequency Allocation Management Panel of the now-defunct Post and Telegraph Department allocated 50MHz bandwidth of 1800MHz to CAT, which in turn granted it to DTAC. DTAC currently uses only 25MHz of that to provide 2G service, with the rest unused. DTAC’s concession will not end until 2018.

True Group is the only telecom operator here currently offering both commercial 3G and 4G services. True’s wholly owned subsidiary Real Future debuted its 4G and 3G services on the 2.1-gigahertz spectrum on May 8. 

The NBTC granted the 2.1GHz licence to Real Future, DTAC Trinet of DTAC, and Advanced Wireless Network of Advanced Info Service last December after they won bidding for this licence.

In a separate matter, Abdullah said DTAC business had performed well in the past three quarters. While the current economic situation, especially in the upcountry, appeared to be a bit sluggish, DTAC has maintained its market guidance for a high-single-digit revenue growth this year. 

DTAC Trinet has recently achieved 50 per cent of population coverage nationwide with its 2.1GHz network, and will further expand this coverage by another 5 per cent within this year.