Thai AIS to spend $48 mln on WiMax first phase

Updated:2008/3/27 14:55

Advanced Info Service ADVA.BK, Thailand''s top mobile operator, said on Wednesday it would spend 1.5 billion baht ($48 million) on implementing the first phase of a new super high speed WiMax wireless technology service.

AIS planned to launch WiMax, which allows users to surf Internet and download data, songs and movies at distances as much as tens of kilometres (miles), within 3 months of getting a licence, chief executive Vikrom Sriprataks told reporters.

The budget would be used to install 350-450 base stations in suburban areas and major cities and main coverage would be areas where there was no fixed line network, chief marketing officer Sanchai Thiewprasertkul said.

AIS is among 12 companies which received WiMax trial licences from regulators with Motorola (MOT.N: Quote, Profile, Research) and China''s Huawei Techenologies Co Ltd [HWT.UL] supplying the equipment.

But the market leader had not chosen its WiMax supplier for the planned commercial launch, an AIS official said.

Thai telecoms operators are competing to deploy new technologies, including WiMax and third-generation (3G) services, expected to bring new revenues to the nearly saturated sector.

AIS, 21 percent owned by Singapore Telecommunications Ltd. (STEL.SI: Quote, Profile, Research), has about 50 percent of the domestic mobile market, where about 8 in 10 people have a mobile phone.

WiMax would help AIS to offer a variety of value-added services including broadband Internet, content delivery and video conferencing, Vikrom said.

AIS, which has joined with state-run telephone firm TOT to upgrade 3G services on its 900 MHz frequency, expected to launch 3G services in the next six months at a cost at $50 per subscriber, the company said last week.

AIS''s main rival, Total Access Communication DTAC.BK (TACC.SI: Quote, Profile, Research), teamed with state-run CAT Telecom to develop 3G on its 850 MHz frequency.

Analysts said the outlook for the Thai telecoms sector had improved this year on expectations that better domestic consumption should boost earnings and regulatory costs would be lower after 3G licences were issued.

At the midday break, AIS shares were unchanged at 99 baht while TAC shares were down 1.06 percent and the main index .SETI was down 0.83 percent. ($1 = 31.40 Baht)

Source:reuters