Thailand's TOT announced a plan to invest 30 billion baht ($891) in 3G mobile phone services to be ready for commercial launch within one year.

The announcement came after TOT signed a memorandum of understanding with CAT Telecom yesterday for the rights and management of the 1900 MHz spectrum to provide 3G services.

Under the agreement, TOT would pay 2.4 billion baht ($72 million) for the 42% stake in Thai Mobile held by CAT Telecom, to be paid in instalments over five years. TOT would also shoulder all the accumulated debts of Thai Mobile.

Mun said that TOT would invest alone in the 3G network infrastructure to become a "virtual" mobile network operator that would rent it to private operators seeking to provide 3G services.

TOT expects three or four private operators to share its network.

TOT board chairman Teerawut Boonyasophon said the state enterprise would provide the 3G services under the TOT Mobile brand. A subsidiary would be set up to manage the service and would spend about 30 billion baht to build the 3G network nationwide within one year.

Initially, TOT would invest to upgrade the existing 500 base stations in Bangkok and satellite provinces to a 3G platform and transfer the current 60,000 customers of Thai Mobile to the new system.

He said that TOT would allow its business allies, AIS, True, TT&T and DTAC, to use its mobile network. Although AIS, DTAC and True Move have plans to offer their own 3G services, the spectra allowed them are not the world standard 1900 MHz like that of Thai Mobile, which means handset compatibility could be limited.

TOT would handle just 20% of the marketed services while the rest would be handled by its business allies on rental basis.

Source:Bangkok Post