Value-added services could become cheaper

KOMSAN TORTERMVASANA

TOT Plc has picked Advanced Info Service as its strategic partner to develop services, lower operating costs and improve fixed and mobile networks with the ultimate goal of migrating to third generation (3G) mobile phone service.

The state telecom enterprise and the country's largest mobile operator are expected to sign a memorandum of understanding this month.

A TOT board director said the co-operation with AIS would included the development of a 3G platform without overlapping with the existing mobile phone concession held by AIS, which will expire in 2016.

He said that executives of both companies believed the agreement would help them develop value-added services on their networks and lower operating costs of each party.

The co-operation would also feature a fixed-wireless convergence (FMC) application on existing networks, and the replacement of the existing network to 3G on the 900 and 2100 MHz bandwidths.

Under the convergence approach, the director gave the example of a customer using the AIS mobile service and returning to his home which has a TOT fixed line. The installation of a low-cost switching box would allow the customer to use his handset on the fixed-line network and lower his overall telephone bill.

He said TOT would gain from the higher revenue generated by AIS's huge customer base of around 24 million subscribers, which would mean a larger revenue share for TOT under the concession agreement.

''We are not launching new services, but just adding value and making services easier for customers,'' he said.

He also said that co-operating with AIS would help resolve the 3G licence deadlock because it is value-added service. He stressed that co-operation with AIS had no connection with the concession and would not disadvantage TOT.

Co-operation with AIS on 3G on the 900 and 2100 MHz bandwidths, ADSL and core networks would pave the way for new applications in database management with high security, and as a consequence enable customers to use services at a low price.

The director said that AIS would develop 3G service step by step, starting from upgrading the network. In return, TOT would grant rights to AIS to negotiate for new services after its concession expires.

All operators were awaiting clarification of 3G conditions, he said, adding that TOT and CAT Telecom had frequencies for 3G. If regulators fixed conditions, TOT could apply for a 3G licence immediately.

AIS executive chairman Somprasong Boonyachai welcomed the strategic partnership with TOT, though he said more details had to be discussed.

Mr Somprasong said that second-ranked DTAC was also developing a partnership with CAT Telecom, which holds its concession, to migrate to the new era of wireless service. Such agreements between state and private operators should not be considered unusual, he added.

Shares of AIS (ADVANC) closed yesterday on the Stock Exchange of Thailand at 96 baht, down 0.50 baht, in trade worth 167 million baht.
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