National Telecom's (NT) attempt to develop a mobile phone service on its 700-megahertz spectrum remains stuck in a rut.
The company has held the spectrum since a 2020 auction and paid three instalments for the licence.
NT is the merged company of TOT and CAT Telecom. Prior to the merger, CAT won a bid for 20MHz of the 700MHz spectrum in a National Broadcasting and Telecommunications Commission (NBTC) auction by offering 34.3 billion baht.
In March the cabinet approved NT moving ahead with project development, with a budget of 61 billion baht spanning 14 years. According to NT's plan, the service will focus on new users as well as existing customers on its 850MHz, 2100MHz and 2300MHz bands, which are due to expire in August 2025.
According to a source on the NT board who requested anonymity, the enterprise is concerned about several factors that might affect the service in the future if it rushes to launch.
The service still lacks clear details about a viable business direction, although NT management set a conservative target for a mobile customer base of only 3 million over the next few years after the 700MHz service launches, up from the current tally of 2 million customers on its all spectrum ranges, said the source.
NT also has no real experience or business mindset to compete in the mobile phone service market, which is already saturated, said the source.
The board feels hesitant about moving ahead with the investment given these uncertainties, the source said.
In addition, an NBTC panel is still considering the partnership deal between NT and Advanced Info Service (AIS) on their joint 700MHz project development. The two companies signed a memorandum of understanding regarding the partnership last year.
Under the partnership, AIS plans to buy and operate half of NT's 700MHz spectrum capacity, which is 10MHz of bandwidth. AIS will also pay half of NT's 700MHz licence costs to the regulator on behalf of NT until the end of the payment term.
AIS is expected to help facilitate NT services through network collaboration in the future.
NT is obliged to pay rental fees for AIS's cellular networks and related equipment for providing 5G service on its remaining 10MHz of bandwidth on the 700MHz spectrum until the end of the licence term. AIS will be allowed to use NT's 700MHz spectrum to boost its own capacity from 30MHz to 40MHz of bandwidth, according to the pact.
AIS chief executive Somchai Lertsutiwong told the Bangkok Post earlier the company will invest in 700MHz network expansion serving utilisation of mobile service for both AIS's and NT's demands. NT is required to pay rental fees for all related telecom infrastructure to AIS.
True Corporation, AIS's main rival, holds 40MHz of capacity on the 700MHz band.
NT paid 3.3 billion baht for each of the first two instalments for its 700MHz licence to the NBTC the past two years. The firm recently paid 1.65 billion baht, half of the third instalment for 2023, with AIS responsible for the remainder despite being unable to utilise that spectrum bandwidth.
The NT source said the Digital Economy and Society Ministry earlier urged the company to develop its 700MHz business by bundling a mobile phone service with its existing fixed broadband or fixed line telephone service. It was also advised use the service to support the plans of state power authorities to convert traditional meters to smart meters, in addition to developing Internet of Things solutions for state projects such as smart farming and health-link platforms.
