DTAC, CAT to meet on bandwidth transfer
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As part of MOU signed yesterday for network collaboration
Total Access Communication (DTAC) will hold discussions with CAT Telecom about transferring 25 megahertz of unused bandwidth from its 1,800MHz concession to the regulator for auction, as part of a memorandum of understanding signed by both parties yesterday.
Sigve Brekke, interim chief executive officer of DTAC, said the company agreed to establish a collaborative relationship and enter constructive discussion with CAT to promote the sharing of network infrastructure and the network-access business of the parties.
Mutual consent is needed to transfer the vacant band to the National Broadcasting and Telecommunications Commission (NBTC) for auction.
CAT granted a 50MHz-wide band from the 1,800MHz spectrum to DTAC to provide cellular service, of which only half is being used. DTAC’s concession expires in 2018.
The NBTC is keen to auction a 12.5MHz band from the 1,800MHz spectrums of both TrueMove and Digital Phone Co in mid-2015, but Brekke said this band might not be enough to serve rising demand for broadband communications from mobile-phone users.
He added that DTAC would also tell CAT that his company was willing to transfer the 850MHz portion it is using to the NBTC.
CAT and DTAC should complete the talks on the transfer before the NBTC calls a new round of bidding for spectrum licences, he said.
Colonel Sanpachai Huvanandana, a director and acting president of CAT, said his state agency was willing to listen to DTAC if it could explain why the transfer to the NBTC was better for CAT than keeping the band.
Under the terms of its concession, DTAC can use the idle band only after the first band becomes full, which was impossible, he said, adding that it might be more fruitful to explore ways to utilise the reserve band that will benefit both CAT and DTAC.
“At this stage, CAT and DTAC will jointly explore the possibility and come up with a mutual sustainable framework for a potential business model and strategic collaboration.
CAT expects to reach a conclusion this month and take collaborative efforts to the next level in January.
“Based on this strategic collaboration, both CAT and DTAC expect to develop the existing infrastructure and related businesses jointly to be more modern and efficient and to promote sustainable economic and social development and national stability,” Sanpachai said.
Brekke said DTAC would like to be a long-term strategic partner with CAT. The planned infrastructure-sharing with CAT would help the company save on the huge cost for network expansion and focus on providing better customer service instead.
There are many possible models for network collaboration, including a joint venture.
DTAC is also waiting to talk with TOT about a possible partnership. That state enterprise has invited telecom operators to propose partnership plans.
Recently TOT said it was streamlining its organisation and would divest 11 joint ventures, including its 5-per-cent stake in DTAC.
Brekke said yesterday that it was unlikely this would affect DTAC, since it was just a small number of shares.
DTAC recently signed an agreement with the True Telecommunications Growth Infrastructure Fund initially to lease more than 100 telecommunications towers from the fund this year to expand coverage of its 3G broadband service on the 2.1-gigahertz spectrum.
