January 4, 2017

TOT seeks 4G tie-up proposals

Partnership hope with three major operators

A man walks through the 4G logo at AIS Tower 1 on Phahon Yothin Road. TOT expects AIS and two other major mobile operators to cooperate in 4G development on TOT's network. Patipat Janthong

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TOT Plc says it will ask three major private mobile companies -- AIS, DTAC and True Move -- to submit their partnership proposals to jointly provide fourth generation (4G) wireless broadband service on the state telecom enterprise's network.

The three operators have until April to propose their mobile business plans under a wholesale-resale agreement to provide 4G service on TOT's 2300-megahertz spectrum, said Rungsun Channarukul, TOT's senior executive vice-president for wireless business.

Mobile operators can join with telecom equipment suppliers to propose their partnership proposals, he said.

TOT hired Detecon Consulting for 12 million baht as an adviser on TOT's partnership plan for its 4G business.

Detecon is drafting terms and conditions for the process of seeking partnership, expecting to finish by February.

The National Broadcasting and Telecommunications Commission (NBTC) in 2015 approved TOT's proposal asking to use 60MHz of bandwidth on its existing 2300MHz spectrum to provide 4G service until 2025.

TOT submitted the first draft of its proposal in August 2016 to NBTC but the draft was rejected as it lacked viability.

NBTC threatened to take bandwidth from TOT's 2300MHz spectrum for auction if the state telecom enterprise fails to come up with a more viable second draft within December.

Rungsun: Approval hope for second draft

TOT submitted the second draft of its mobile business development plan to the NBTC in mid-December for approval.

Mr Rungsun said the second draft has clear strategic planning for management and operations, including a clear timeline for commercial launch of 3G and 4G services as well as a roadmap for spectrum planning and usage.

"We're confident that the second draft will receive official approval by early 2017," he said.

If the plan is approved, TOT will partially roll out commercial 4G service on the 2300MHz network by October 2017, he added.

Prawit Leesathapornwongsa, a NBTC commissioner, said the first draft of TOT's 2300MHz business plan had only four pages of details, lacking significant elements such as strategic planning for management and operations.

"If the second draft has a clearer business operation as well as a roadmap for spectrum planning and usage, NBTC will have to approve the draft," he said.

Mr Prawit said the NBTC rejected any further delays for TOT's business draft because the regulator has already passed a resolution to allow TOT to develop 2300MHz network without any condition.

TOT can file a legal challenge against the NBTC if it opposes the state enterprise's 4G business development plan.

Mr Prawit said he believes the NBTC's telecom committee might raise the issue of TOT's second draft at a meeting for consideration early 2017.

Under the second draft of TOT's 2300MHz development plan, TOT plans to seek potential private mobile operators to take part with the state enterprise under a 10-year wholesale-resale agreement.

The private partners must build 4G network on the 2300MHz spectrum nationwide for TOT, with 1,769 base stations in the first year of operation and increasing to 8,455, 14,994, 20,367 and 21,217 respectively over the five years.

Mr Rungsun said AIS, DTAC and True Move have expressed interest in taking part in TOT's 4G business.

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