Thailand's Advanced Info Service (AIS) is reported to have launched its long planned 3G network - operating in the 900Mhz band - in the capital city, Bangkok. The firm is already operating a 3G network in the 900Mhz band in Chiang Mai, pending the award of 3G licenses and spectrum in the more conventional 2.1Ghz bands.

The firm also plans to start a 3G service in the eastern province of Chonburi early next year - reported the Reuters news agency. Huawei is the equipment supplier for the network.

AIS, which recently reviewed its 3G investment as the global financial crisis hit consumer demand, decided to launch the service in limited areas, Somchai Lertsuttiwong, AIS's executive vice president for marketing, told Reuters.

Rival operator, DTAC recenlty announced that it will delay the launch of its 3G network until it sees more demand for mobile data services. The decision was taken by the company's new CEO, Tore Johnsen, who had taken charge of DTAC just a few weeks earlier.

However, rival state controlled operator, TOT says that it will proceed with its 3G network rollout and expects to have some 350,000 subscribers by the end of next year, and four million by 2013.

Under the plans, TOT will upgrade some 500 base stations in the capital, Bangkok and other main cities to support 3G services. The upgraded network will then be sub-let to its joint venture, ACT Mobile - which trades as Thai Mobile. A second phase of the network upgrade will result in the installation of 5,200 new 3G base stations to provide national coverage.

Earlier this month, TOT signed an initial deal with another state agency, CAT Telecom, to pay THB2.4 billion ($71 million) for the right to operate the 1900 megahertz frequency, which can support 3G services. Under the memorandum of understanding, CAT has agreed to transfer its interests in joint ventures that own the frequency to TOT, both agencies said in separate statements.

Source: Reuters