CAT Telecom to form mobile service JV with Tesco Lotus, launch set for early next year

Colonel Sanpachai Huvanandana said the service is expected to be launched early next year. CAT will lease its 850-megahertz network to the joint venture, while Tesco Lotus will develop a SIM-card distribution channel, offer cellular services and draw up a marketing plan.

The service will initially target the country’s 3 million Tesco Clubcard members.

Earlier, Tesco proposed to lease CAT’s network to become an MVNO before changing the proposal to set up the MVNO joint venture with the state agency. The joint venture will last until CAT’s telecom licence expires in 2025.

An MVNO does not have its own network but leases one from a telecom operator to provide services. CAT has four MVNO partners: Real Move and True Move H Universal Communication of True Corp, 168 Communications, and Data CDMA. Real Move is its biggest MVNO, using 80 per cent of its total capacity on the 850MHz spectrum to serve 13.5 million subscribers.

Meanwhile, Sanpachai said CAT was considering seizing the bank guarantee of 168 Communications worth Bt50 million after it allegedly failed to pay the transmission-network rental fee of Bt90 million.

In a separate matter, UK-based Tesco has pushed ahead with a plan to open new stores and regional distribution centres to capitalise on the government’s anticipated economic stimulus.

Tesco Lotus, the British company’s Thai branch, says it is on course with its own investment plan, opening new Express stores and hypermarkets nationwide, most recently in Surin’s Prasat district. 

In addition to the store openings, the retailer’s second regional distribution centre, worth Bt2.5 billion and located in Surat Thani province, will become fully operational at the end of this month, with 52,000 square metres of total space. 

John Christie, chief executive of Tesco Lotus, said he was confident in the strong fundamentals of the Thai economy and committed to providing quality products at low prices for customers, especially during tough times. The opening of the new distribution centre will create nearly 700 new jobs.

“We continue to invest as per the plan we set out at the beginning of the year, opening new stores in strategic locations across Thailand, helping to strengthen local economies nationwide,” he said. 

“This year’s investment plan includes the opening of 50 Tesco Lotus Express stores, which we have already successfully achieved, and five Tesco Lotus large-format stores, the most recent one was the 9,400sqm store in Prasat district, Surin province, in anticipation of the Asean Economic Community and trade activities along the Thai-Cambodian border. 

“Our second regional distribution centre, which will be fully operational by the end of this month, is located in Surat Thani and poised to serve the growing customer base in the South of Thailand.

“By opening new stores, we are able to make contributions in terms of stimulating the local economy and employing local people, directly and indirectly. Small and medium-sized businesses in the area can also rent space in our stores, in turn generating income and distributing wealth among the locals.

“Tesco Lotus is confident that the government’s plan to boost the spending power of low-income earners will help stimulate not only the retail sector, but also the economy as a whole. During tough times, Tesco Lotus is ready to help alleviate the financial burden our customers have, by providing quality products at reasonable prices,” Christie concluded.