DTAC bargaining for 3G upgrade
SRISAMORN PHOOSUPHANUSORN

Second-ranked mobile operator DTAC says it has bargained with CAT Telecom for permission to upgrade its existing network to third-generation (3G) in exchange for its agreement to resume using the state telecom enterprise's international direct dialling (IDD) gateways.

DTAC outlined plan to upgrade its analogue 850 MHz frequency to high-speed download packet access (HSDPA) under a five-billion-baht scheme, pending CAT approval.

CEO Sigve Brekke said DTAC had agreed tentatively with CAT on a give-and-take proposal with three components: resuming the use of IDD gateways in exchange for approval of network upgrading; allocating some bandwidth on the 800 MHz frequency to third-ranked True Move; and co-marketing and advertising with CAT Telecom.

Mr Brekke said his company was pleased to help CAT on IDD by rerouting its international traffic. But he said CAT needed to provide the same rates offered to existing foreign operators so as not to hurt the Thai company's business.

''We agreed to stop running our IDD on our own gateway if CAT will quickly approve us to upgrade the network,'' he said.

DTAC is now providing IDD services on its own network under the 004 prefix. CAT has cried foul over mobile operators' moves into IDD, claiming it was losing millions of baht a month in revenue.

Mr Brekke said DTAC was willing to freely allocate 5-7 MHz to True Move which would be enough for the third-ranked mobile operator to provide 3G services.

''We like competition,'' he said. ''We want to help True Move ... have the frequencies to catch up with bigger rivals in the 3G race.''

True Move is seen to be in the weakest position as it could face potentially lengthy talks with its concession holder CAT Telecom.

Mr Brekke said that if the CAT board approved the company's proposal at its meeting today, the company would submit it to the National Telecommunications Commission (NTC).

''Following the approval process, we expect to launch 3G services in Bangkok, Chon Buri and Phuket by the second half of this year,'' he said.