Total Access Communication PCL, Thailand's number two mobile operator, said on Wednesday it would have to delay a new high speed Internet service until early or mid-2009 because of regulatory issues.
TAC has formed a loose partnership with CAT Telecom to develop 3G on its existing 850 MHz frequency but is still waiting for the state firm's board to give the go ahead to the project, Chief Commercial Officer Thana Thienachariya told reporters.
"We have been waiting a long time for CAT's board to approve this," he said. "We hope we should be able to do it within nine to 12 months after we receive approval from CAT and the regulator."
Thana, who was attending a seminar on "3G" or third generation mobile phone services, was unable to provide any reasons for CAT's delay. CAT executives at the seminar also refused to provide any explanation. Market leader Advanced Info Service launched high speed phone Internet services in Chiang Mai last month but has had to put off plans to expand coverage and start more services because of government delays in approving import of equipment, its top executive said on Tuesday.
When CAT's board approves the plan, TAC would also seek approval from National Telecommunication Commission (NTC) to import 3G equipment, Thana said. TAC, controlled by Norway's Telenor, had initially planned to launch the service by using HSDPA (High Speed Downlink Packet Access) technology later this year. HSDPA is an advanced 3G mobile technology that enables faster Internet browsing and video and music downloads than existing systems.
Thai telecoms operators are competing to deploy new technologies, including WiMax, to extract new revenues from a nearly saturated sector. They are also keen to receive 3G licences on a new 2.1 GHz spectrum from the NTC. NTC Secretary-General Suranan Wongvithayakamjorn said he expected the regulator to complete drafting rules and conditions on the issuance of 3G and WiMax licences by the end of this year.
WiMax is a new super-high-speed wireless technology, which allows users to surf the Internet and download data, sound and movies at considerable distances. 3G licensing is seen as a key step in reforming the sector because companies will pay licence fees instead of paying a portion of their revenues to state-owned firms for the right to operate networks they built and paid for, as they do now.
But the pace of reform has been muddled by slow progress in setting up another regulator to join the NTC in allocating 3G spectrums.
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