[The Bangkok Post via NewsEdge] The 3G mobile phone service planned by Thai Mobile, a 58:42 joint venture of TOT and CAT Telecom, is likely to be aborted.
The new Information and Communications Technology minister has questioned the investment-worthiness of a 3G network that could cost 100 billion baht ($2.7 billion) -- a sum beyond the capability of Thai Mobile.
Sittichai Pokai-udom told the boards of TOT, CAT Telecom and Thailand Post that investments in 3G service merited a review to find the best and most appropriate option for the country.
Thai Mobile has only 100,000 customers in a cellular market of 34 million despite having been in business for five years, mainly because of infighting between TOT and CAT over how to run the business.
TOT is attempting to buy out CAT's stake in the venture, but the two state enterprises cannot agree on a price.
However, Thai Mobile owns a frequency band in the 1900MHz spectrum that is capable of being used for 3G services.
Sittichai said the country should have only one 3G network and provide service on a shared-resource basis.
He cited the experience of the early analogue cellular services 15 years ago when rival operators of the AMP800 and NMT 900 systems invested in the same locations and competed with each other, benefiting no one in the end.
Thai Mobile, he said, needed to have a clear objective and target, including details on how much money it wanted to invest, where it would get the money, and whether the service would survive.
© 2006 Bangkok Post
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