Hutch seeks clear direction on 3G

(Bangkok Post via NewsEdge) Uncertainty over the future of 3G mobile services threatens to undermine the business prospects of the small operator Hutch at a time when it is preparing with partner CAT Telecom to expand its CDMA service nationwide.

Executives of Hutchison Telecommunications International and CAT raised the issue in talks with Thailand's Information and Communications Technology Minister Sitthichai Pokai-udom.

Dennis Lui, chief executive of HTI, also wanted to clear up legal uncertainties regarding the Hutch operating contract.

Hutch, the country's fourth-largest operator, is marketed by Hutchison CAT Wireless Multimedia, a joint venture between CAT and Hutchison, in 25 central provinces including Bangkok. Network services are leased by Hutchison CAT Wireless, which is 74% held by Hutchison, from BFKT, another Hutchison vehicle.

CAT wants to expand the Hutch service to the remaining 51 provinces, and has contracted the Chinese telecom supplier Huawei to install 1,600 additional base stations nationwide by early 2007.

But the Council of State is currently examining whether the original Hutch contract met the requirements outlined in a 1992 law on public-private joint ventures, as well as whether the network lease agreement with BFKT was proper.

CAT president Phisal Jorpoocha-udom said the legal uncertainties were affecting the Hutch service.

'Both Hutch and CAT have suffered losses because of this. We want the Council of State to speed up its deliberations, because without clarity, we can't move forward with the business and it will also affect CAT's plans to expand CDMA nationwide,' he said.

The 7.2-billion-baht CDMA expansion, he said, would establish a '2.75G' network suitable for high-speed data applications.