Unused frequency to be traded for licence* Published: 13/06/2011 at 12:00 AM
* Newspaper section: Business
OSLO : DTAC, the country's second largest mobile operator, is floating a proposal to return an unutilised portion of its frequency to the new industry regulator in exchange for a fourth-generation (4G) operating licence.
‘Now‘is the most logical time for Thailand to move forward, whether it be 3G or 4G,’’ JON EDDY ABDULLAH CEO, DTAC
The company says it has devised a strategic model that could end the long stalemate over 3G and simultaneously lay the groundwork for 4G wireless broadband services, which some other countries are already developing.
The idea centres on returning the portion of the 1800-Megahertz spectrum that the company is not using to the National Broadcasting and Telecommunications Commission (NBTC).
Jon Eddy Abdullah, the chief executive officer of DTAC, said he believed the plan was a win-win solution that could break the deadlock in the Thai telecom industry and allow consumers to enjoy the benefits of high-speed wireless data communication.
"The proposal might unwind the Thai telecom industry, moving away from concessions to a licensing regime," he said at a briefing at the headquarters of the company's Norwegian majority shareholder Telenor.
Mr Abdullah said DTAC was willing to return 25 MHz of unused bandwidth on the digital 1800-MHz spectrum to the NBTC once the new broadcast and telecom regulator is formed.
Wichian Mektrakarn, the chief executive of the mobile market leader Advanced Info Service (AIS), agreed with the idea, saying it would be a technical solution. But he said that the allocation of the frequency had to be done transparently under a fair agreement.
DTAC has 50 MHz of the 1800-MHz frequency for voice services, plus 10 MHz of analogue 850-MHz frequency bandwidth for data service. Its concession is due to expire in 2018.
The concessions of third-ranked True Move and DPC, a subsidiary of AIS, are due to expire in 2013, at which time they must return 12.5 MHz each of the 1800-MHz spectrum to their concession providers.
CAT Telecom owns the DTAC, True Move, DPC concessions.
By combining DTAC's 25 MHz with the 25 MHz of True Move and DPC, the NBTC could then call an auction to issue 4G licences for operators on the 1800-MHz spectrum, Mr Abdullah explained.
"The granting of 4G licences would be under the frequency allocation principle," he said, adding that this could resolve the chronic problems impeding industry development, notably the inability to offer 3G service at a time when most other countries offer it and many are now preparing to launch 4G.
A discussion at the state level is needed to execute an action plan, he said, adding that the NBTC should consider the proposal for the sake of the national interest.
"Now is the most logical time for Thailand to move forward, whether it be 3G or 4G," he said, adding that the proliferation of smartphones and tablet devices had substantially increased mobile internet demand.
Prathet Tankuranun, the company's head for engineering, said DTAC could install 4G long-term evolution (LTE) software on top of its existing upgraded 2G network, enabling it to provide speeds of up to 80 Mbps.
"The software installation could take two or three months, with 4G commercial service to switch on sooner," he said.
"Our 3G would be for both voice and data services while 4G would be for pure data services."
DTAC is upgrading all 10,359 of its 2G base stations to make them 3G-ready under network swap projects, improving network quality and increasing capacity by 20%.
The upgrading is scheduled to be completed in mid-July in Bangkok and nationwide next year, said Mr Prathet.
Mr Abdullah also said DTAC was determined to move ahead with 3G commercial service on its analogue 850-MHz frequency despite CAT's refusal to approve its requests for almost three years.
DTAC will build 1,220 3G base stations on the 850-MHz frequency using high-speed packet access technology. "We are confident we can get approval from the acting NBTC to provide 3G commercial trials soon," he said.
DTAC initially expected its trial services to start in Bangkok this month, and in big provinces in the third quarter.
However, Mr Abdullah said the 3G on the 850-MHz frequency would be only a temporary solution. The only real solution for the country and the industry in the long run, he said, would be 3G on the international-standard 2.1-GHz frequency.
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