Dtac extends assurance to clients
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Failing to win a 4G licence for the service in the 1800MHz spectrum, Total Access Communication today issued a statement to assure clients of seamless services.
It said that the company's 4G service coverage would be further expanded in the existing spectrum band under concession from CAT Telecom.
Lars Norling, chief executive officer of Dtac, said the company would further expand wider coverage to serve the growing demand of mobile users.
"Dtac is highly confident that all of existing spectrum dtac currently is operating on; in the 2100MHz, 1800MHz and 850MHz spectrum bands, are sufficient to provide quality and coverage of voice and internet services on 4G, 3G and 2G. Dtac already operates 5MHz of 4G services on 2100MHz spectrum from license and 10MHz of 4G services on 1800MHz spectrum on concession and targets 2.5 million 4G subscribers by year-end.”
Yesterday, Advanced Info Service and True won licenses for the 1800MHz spectrum in the marathon auction hosted by the National Broadcasting and Telecommunications Commission (NBTC).
Yesterday, concerns with telecom stocks' profitability in light of high auction prices for the two licences put pressure on the Thai stock market. Meanwhile, foreign investors, local institutional investors and securities companies were all net-sellers of Thai shares for the second straight day, reflecting the ongoing pessimism on the investment outlook.
Asia Plus Securities and Tisco Securities viewed that the licenses were too expensive. Asia Plus also recommended investors switch their investment from Dtac and True to Advanced Info Service (Advanc).
While Dtac share price lost 4.46 per cent today as of 11.21am to Bt53.50, Advance gained 2.37 per cent to Bt216. True gained the most, 5.43 per cent to Bt9.70.
Siam Commercial Bank's Economic Intelligence Centre said that the final bid prices of Bt80.8 billion, 154 per cent above starting prices, reflected telecom companies' race to cope with increasing data transmission demand.
It said during 2010-2014, data usage had increased by 35 per cent per annum on average. It noted that despite the high prices, the winners are unlikely to face financial pressure given their huge cashflow. Yet, the cost could cut their earnings by 5-10 per cent.
