CAT, DTAC unit to sign MoU on telecom network joint venture
CAT Telecom and DTAC TriNet (DTN), subsidiary of Total Access Communication (DTAC), are expected to sign a memorandum of understanding on Monday on a joint venture to collaborate on DTAC's telecom network infrastructure under CAT's concession, CAT actin
He said the MoU would mark the starting point of their network collaboration.
“We are talking about many possible collaboration models but have yet to finalise the arrangement,” Sanpachai said.
A DTAC source said the company would announce the collaboration with CAT but declined to provide any details.
DTN holds a licence to provide third-generation cellular service on the 2.1-gigahertz spectrum.
Sanpachai said CAT and DTN had been in talks on the possible collaboration for a while. DTN plans to expand its network nationwide, especially for 4G.
Recently DTAC announced that it would spend around Bt10 billion over six months to expand its 3G and 4G wireless broadband coverage in the Bangkok metropolitan area and 30 other major cities to serve surging demand.
Sanpachai said DTN was keen to utilise DTAC’s infrastructure under CAT’s concession to expand its network nationwide. The main infrastructure includes telecom towers, base stations and fibre-optic networks. He added that the two might set up a joint-venture company to use or rent out these networks.
The value of CAT’s share in the joint venture will be calculated from the DTAC network asset under its concession, he said. CAT will rent this network to other companies too, but mainly to DTN.
DTAC’s concession will expire in 2018.
DTAC recently signed an agreement with the True Telecommunications Growth Infrastructure Fund (TRUEGIF) initially to lease more than 100 telecommunications towers this year from the fund to facilitate expansion of its 3G-2.1GHz wireless broadband service coverage.
Under the three-year deal, in the first phase, DTN is renting 100-115 telecom towers from TRUEGIF. The total value of the deal this year is Bt2 million.
Sanpachai said CAT now was expected to make more than Bt1 billion in profit this year, higher than the earlier expectation of Bt425 million, thanks to reductions in its operating costs. The state agency expects revenue of more than Bt49.7 billion this year.
