CAT mulls JV with Korean firm
CAT TELECOM recently signed an agreement with SK Telecom for the South Korean telecom operator to become its potential partner in its wireless business.
CAT president Kitisak Sriprasert said last week that the collaboration might include bidding for telecom licences in Thailand and developing a network provision service in the future.
SK Telecom has already sent some staff to explore business opportunities with CAT, he said.
A CAT source said a joint venture might be set up to operate a wireless business in the future.
The National Broadcasting and Telecommunications Commission (NBTC) plans to auction the 1800MHz band of TrueMove and Digital Phone Co (DPC) next September.
CAT is keen to use the idle 25MHz bandwidth of the 1800MHz frequency of Total Access Communica-tion (DTAC) to provide 4G broadband cellular service.
CAT granted 50MHz bandwidth of this spectrum to DTAC, which uses only half of it to serve its 2G customers under its concession from CAT.
DTAC is in negotiations with CAT to launch a 4G service on the unused bandwidth under a wholesale/resale business model similar to the contracts that CAT has with another operator.
As another option, DTAC said it is willing to return this unused bandwidth for auction if requested by the NBTC.
DTAC is proceeding with both options given the accelerated development and consumer need for 4G technology.
Kitisak said CAT and DTAC are just in preliminary talks on this 4G issue and there are many details to be discussed. The use of this idle bandwidth needs their mutual agreement. CAT also needs support from the Information and Communications Technology Ministry and the NBTC to utilise this bandwidth.
Recently DTAC said there is broad potential demand from subscribers of its network for a wireless broadband 4G service. It projects that its subscribers with 4G-capable devices would reach around 1 million by December, out of its 27 million 2G and 3G subscribers. These 1 million customers are potential 4G users.
CAT is pinning its hopes on its existing wireless broadband service to become a new main revenue source. The concessions of TrueMove and DPC expired last month, while that of DTAC will end in 2018.
But starting in December, CAT has to transfer all its concession revenue to the NBTC under the Frequency Allocation Act.
CAT expects revenue of Bt39 billion this year, of which Bt24 billion would come from its 3G-850MHz service under its partnership with True Corp. Of the Bt24 billion, Bt4 billion would be net profit, which is projected to surge to Bt7 billion next year.
