CAT, DTAC to put another 5MHz under 1800MHz spectrum on auction
CAT Telecom and its concession holder Total Access Communication (DTAC) have reached an agreement to transfer 5MHz of DTAC's bandwidth under the 1800MHz spectrum to the licensing regulator for auction, CAT's acting chief executive officer, Colonel Sanpach
If the National Broadcasting and Telecommunications Commission (NBTC) agrees to add the proposed bandwidth to its auction plan, it will have a total of 30MHz bandwidth of the 1800MHz spectrum up for grabs in the auction.
The original plan was to have 25MHz of bandwidth.
However, to do so could cause its auction schedule this year to be delayed, as the watchdog might need more time to adjust the auction details accordingly.
CAT granted a concession to use 50MHz of the bandwidth to DTAC, which uses only half of it. The 5MHz bandwidth DTAC will pass on to the NBTC under the agreement is in the half of the 25MHz bandwidth it currently uses.
The NBTC’s current intention is to put four licences up for auction, two of 12.5MHz each on the 1,800MHz spectrum of TrueMove and Digital Phone Co (DPC), and two of 10MHz each on the 900MHz spectrum.
It plans to hold the 1,800MHz auction in November, and take bids for the two 900MHz licences the following month.
Sanpachai said CAT would hold talks with the NBTC next week on the planned transfer of 5MHz of the 1800MHz spectrum to the regulator.
He also said DTAC had already written to CAT informing it that the operator agreed with the state agency on the matter of the bandwidth transfer.
CAT has already informed Information and Communications Technology Minister Pornchai Rujiprapa and Deputy Prime Minister MR Pridiyathorn Devakula about the matter, he added.
Sanpachai said both ministers had agreed with the plan to transfer the additional bandwidth to the NBTC, but CAT had to discuss the matter with the watchdog, too.
CAT’s chief executive said that taking the proposed bandwidth into the auction plan would cause the auction to be delayed from the original schedule by only a few months, but the watchdog would benefit by having a bigger bandwidth to put up for auction.
At the same time, DTAC will adjust the position of its 1800MHz spectrum band, which stands between the 1800MHz bands of TrueMove and DPC, to enable the bands of the latter two to be close together.
This will enable the auction winners of those two companies’ spectrum bands to provide cellular service effectively.
Sanpachai added that DTAC and CAT might seek compensation for the transfer of 5MHz bandwidth to the watchdog.
An NBTC source said that if it had 30MHz available for auction, it would open up the possibility of several licensing options, such as six licences, each featuring 5MHz bandwidth; three licences of 10MHz each; or two licences of 15MHz bandwidth each.
In a separate matter, CAT yesterday awarded a mobile virtual network enabler (MVNE) deal to Suvitech Co.
Suvitech will provide the software system to support SIM-card registration, billing, customer database analysis and customer relations management. CAT will deploy all these elements to support the business of its upcoming mobile virtual network operator (MVNO) partners.
The state agency currently has two MVNO partners, and is in talks with several more prospects.
Suvitech, which will initially spend around Bt100 million on the software system development, will share the revenue generated from the deal with CAT.
Revenue will be received from CAT’s new MVNOs that use the software service. Sanpachai said CAT targeted revenue of Bt200 million this year from this MVNE-based service, rising to Bt2 billion in the next five years.
