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Home > Communications > Telecommunications > General Telecom
Thailand Telecommunications Report Q3 2008
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Developments occurring in the 3G sector have been of major importance this quarter. AIS, the country’s market leader, has been at the forefront in driving the rollout of its 3G services, which commenced in Chiang Mai in May 2008 and are due to be extended to Bangkok by mid-2008. The operator is the first to offer the services, including video calling, music and film downloads amongst others. Consent from the NTC has meant that the operator can offer 3G ahead of licences being awarded. Similarly, DTAC and True Move have also indicated their intentions towards the deployment of services in the near future.
Just four 3G licences are expected to be tendered before the end of the year, with three for 10MHz of spectrum retaining an asking price of US$200mn, with the fourth licence offering 15MHz of spectrum at US$300mn. Naturally, all three of the major operators are expected to bid for the licences, alongside a few of the minor players including TT&T, a fixed-line operator, which has reserved THB50bn to be spent on the cultivation of a 3G service. Forecasting the growth of the 3G sector remains difficult with information yet to be provided, although we estimate that only 0.9% of the population will be 3G subscribers by the end of 2008, largely on account of limited tariff plan availability and also the relatively low incidence of ownership of handsets capable of supporting such services.
Alongside the award of the country’s 3G licences, WiMAX licences are expected to be offered. Naturally, existing broadband service providers are looking to acquire the WiMAX licences. True announced that it had joined together with Korea’s Postdata Flyvo to test WiMAX wireless broadband access in Thailand. Further, TT&T Subscriber Services, a subsidiary of TT&T is preparing to provide WiMAX commercial services in 2008 through a JV with a foreign telecom operator. The operator is set to spend THB100mn on a WiMAX trial with a total planned investment of THB1bn for the deployment of national commercial services.
Meanwhile, mobile operators are also expected to apply for the WiMAX licences. Among them, AIS has reported its intentions to bid. The operator announced it would spend THB1.5bn on implementing the first phase of a new super high speed WiMAX wireless technology service. The operator is not alone in trialling WiMAX services. United Information Highway (UIH), a JV between Benchachinda Holdings and CAT Telecom, held its first trials of 2.5GHz WiMAX wireless broadband services in Phuket.
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