The telecom regulator gave the green light to a partnership between TOT and Total Access Communication (DTAC) to provide service on the 2300-megahertz spectrum, while also approving an extension of the licence payment terms for the 900MHz auction for another five years.
Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC), said the NBTC board had agreed to the partnership deal between the telecom firms, which allows for the development of voice, data and multimedia on TOT's 2300MHz spectrum, using Long Term Evolution technology.
The move is in line with a 2015 NBTC telecom committee resolution that originally allowed TOT to develop service on 60MHz of bandwidth on the 2300MHz spectrum until 2025.
TOT and DTAC can develop their service via wireless broadband or via a fixed-link network.
The two companies will be required to comply with the Telecom Business Act, said Mr Takorn.
He said the NBTC board has subsequently tasked its managers with monitoring the procedures and operations of the deal to ensure that the companies comply with all relevant regulations.
Earlier this year, TOT selected DTAC as its partner to provide 4G services on the state telecom's 2300MHz spectrum, after six months of intensely competitive bidding among the major three mobile operators. TOT and DTAC jointly finished the draft of the partnership contract in September.
DTAC, through its subsidiary TriNet, is committed to investing in more than 20,000 base stations nationwide, covering 80% of the population.
The company will make an annual fixed payment of 4.51 billion baht to TOT for 60% of its total network capacity. TOT will rent equipment from TriNet to using the remaining network capacity to provide its own 4G service.
Meanwhile, the board also agreed to extend the licence payment terms for the 900MHz auction, allowing the two winners to postpone their last 4G licence payment, originally scheduled for 2019, to 2023.
The move follows the latest request from the 900MHz 4G licence winners, Advanced Info Service (AIS) and True Move, who had asked the government to invoke Section 44 to extend their licence payment terms.
AIS won a 900MHz licence with a bid of 75.65 billion baht, while True Move won another licence for 76.29 billion.
Each company has already made two licence payments of 8.04 billion baht in 2016 and 4.02 billion baht in 2017. AIS and True Move both must make the third licence payment of 4.02 billion baht in 2018.
But for the last payment term, originally scheduled for 2019, AIS was to pay 59.5 billion baht, while True Move had to pay 60.2 billion.
Mr Takorn said the NBTC is concerned with the size of the payments for each winner, which could impact the planned 5G licence auctions in 2018.
"With their existing financial burdens, it may be hard for them to secure loans from creditors in preparation for the 5G licence bid, which would inevitably effect the competitive mood of the planned auction," he said.
Source: https://www.bangkokpost.com/business/telecom/1386822/