Friday, September 25, 2009

Sound familiar?

       Your TOT crossed its heart and hoped to die if it fails to have actual third-generation mobile phone service in a little corner of Bangkok before New Year's Eve; Vichien Narkseenuan, the firm's senior executive president for vice, said he expects to sign a deal Real Soon Now with a socalled mobile virtual network operator (MVNO) that will carry the TOT service,although no names, please; Mr Vichien promised "about" 500,000 numbers would be available; real yuppiephone networks scoffed at the TOT offer to let them in on the deal, because they fear that if they rent a network now, the National Telecommunications Commission won't let them bid for a licence to run their own 3G services.
       Vichien Narkseenuan, the senior executive president of vice for your TOT ,said that the state monopoly plans to open a third-generation (3G) phone service with 100,000 numbers, and serving the entire country; TOT has no intention of building its own base stations,though, and will rent them from real phone companies; Mr Vichien forgot to mention when this nationwide 3G service might start for the lucky 100,000.
       The National Telecommunications Commission announced it will open public hearings on third generation phones next Monday; Prasert Aphipunya, secretary in charge of vice for the NTC, said you should bring along a large truck load of money if you want to start the bidding for licences, say,oh, somewhere around 10 billion-witha-"b" baht; after next weeks' hearing,there will be a notice in the Royal Gazette ,and actual bidding for four (and only four) available licences may open as early as December; rules on all of this should be up on the NTC's website by now at www.ntc.co.th.
       For the third time in a row, the strug-gling TT&T company won a multibillion-baht lawsuit against your TOT and for the third time in a row your TOT told them to pound sand; this time,an agree-upon arbitrator decided that TOT owed the up-country phone provider 2.3 billion baht in misguided revenue sharing for long distance calls;but TOT president Varut Suvakorn rejected the arbitration and told TT&T,"See ya in court, boys"; in case the Administrative Court rules against TOT yet again, Mr Varut said he was pretty sure the state firm didn't have that kind of money to pay off anyhow; TT&T explained that lawsuit number four is about to be filed.
       No 2 yuppiephone firm DTAC of Norway opened its new headquarters in new Chamchuri Square , bragging that it spent one billion baht on the 19-floor (!) digs; all 3,200 DTAC employees relocated from the Chai Building to the new location at the Sam Yan intersection,overlooking Chulalongkorn University;CEO Tore Johnsen signed a 10-year lease for the 61,160-square-metre office,which includes the firm's main call centre; Mr Johnsen said new staff will work harder to pay the extra rent money; the kicker is that DTAC is asking the following price for the Chai Building one billion baht; Mr Johnsen said that DTAC was pressing ahead aggressively on its 3G trials and so on and etc and zzzzzzz.
       Energy Minister Wannarat Channukul, apparently unaware that you can't spell "Thaksin" without "hub", said that Asean should become the energy exporting hub of the world; no, really,his reasoning is that Southeast Asia has so much food that it can make biofuels galore and sell it to the world at Arabesque profits; not only does Southeast Asia (sic) have a lot of extra food to feed the world's cars, it's, well, better "higher yields and more commercially viable for biofuel than corn and beetroot" from the US and Europe; to coin a phrase, in the klongs there are fish and in the fields there are biofuels.
       Energy Minister Wannarat Channukul called in state firms and phuyai of the private sector for a heart-to-heart joint statement that everyone would cooperate on saving energy; this year's spin is that the programme will "save"100 billion baht, and Mr Wannarat got away unchallenged with a claim that a similar project last year saved 30 billion baht; the deal is that the Federation of Thai Industries (FTI) and the Thai Chamber of Commerce (TCC) and so on - 30,000 firms altogether - will work on conservation, purchase green technology and so on, and in return they will get some tax breaks and subsidies on loans taken through the energy services company fund (Esco); the minister is looking for one billion baht to fund Esco this year.

A piece of the action

       And the crowd went wild as Steve "President for Life" Jobs of Apple Computer came out on the stage to emcee the now-annual September music sales pitch, with loads of new stuff; in the biggest news, the iPod Nano got a video camera and FM radio, and Steve showed off the new iTunes Ver 9 management software; he also showed off the iPhone OS 3.1, available for download, which actually recommends apps you might like, has better synching for music and video, and lets you save video from email attachments into your playlist, aka Camera Roll.
       Apple cut the prices of its old iPod models just hours ahead of announcing new iPod models; the price of the 32-gigabyte iPod Touch was cut $120 to $279, or 9,500 baht in real money; a 120-gig iPod Classic now costs $229, a $20 cut by the generous folks who run Apple. Palm introduced a smaller,cheaper smartphone than the successful Pre; the Pixi, as it's called, is aimed at younger users; it's slimmer, has a smaller screen, but features a Qwerty keyboard,8GB of memory and a two-megapixel camera.
       US President Barack Obama, in a controversial school-time speech to most US children, advised them to be careful about what they put on Facebook and other social networks;"Whatever you do, it will be pulled up again later somewhere in your life," he warned.
       First Solar of America signed a contract with the Chinese government to build the world's largest solar power plant in Inner Mongolia; assuming it is built, the Ordos City plant will push out 2,000 megawatts of electricity,around four times the size of the projects being built by the US Army in the Mojave Desert and by First Solar in California;the China project isn't near anything much; Ordos City is a coal-producing,eight-year-old, planned low-carbon development with about 1.5 million residents, roughly 800km west of Beijing.
       Networking firm Huawei of China,which has suffered a scandal or two in its Thailand work, was stung to the quick by mean stories in the Australian media that it might be tied to the Chinese espionage services; Guo Fulin, managing director of Huawei in Australia, was hurt by the insensitive stories that his company was under investigation by the Australian Security Intelligence Organisation; Huawei is a public-owned company, he said, and it is unthinkable that any government agency would be using Huawei to conduct spying.
       The government of Cuba took a huge security gamble, and authorised post offices to provide Internet access to the public - just in case the Cuban government ever authorises the public to use the Internet at some point in the future; the only public access currently allowed is to an inside-Cuba intranet for email, provided by post offices at a cost of the equivalent of 55 baht an hour, in a country where the average wage is 680 baht a month.
       Japan fired an unmanned cargo craft into orbit; the 16.5-tonne unmanned H-II Transfer Vehicle (HTV) is on a mission to re-supply the space station;it will stay up there to continue ferrying stuff to the US shuttle fleet next year.
       Prime Minister Gordon Brown publicly apologised for the way that people treated World War Two code-breaker and extraordinary computer geek Alan Turing for being gay; Turing was prosecuted for homosexual conduct in 1952,and a mere two years later, he committed suicide;"I am pleased to have the chance how deeply sorry I and we all are," said Mr Brown.
       Google , which plans to give away grazillions of books in order to get the (commercial) goods on its customers,offered to let all its opponents have a piece of the action;Amazon.com , which wants to sell grazillions of books to make tonnes of money directly, scoffed.Rupert Murdoch, the American media mogul, began collecting money at the tollgate to his news sites, in an interesting experiment to see if people will actually pay for news on the Net.
       IBM, Microsoft, Oracle Corp and Google all responded to a plaintive "Help" from the Newspaper Association of America on how to get money from customers who don't want to pay for news; Randy Bennett, who is the senior president for vice in newspapers, said he's looking over 11 different proposals on how to squeeze money out of you;Google, to no one's surprise, offered to put all newspapers behind one vast,semi-expensive firewall, because that would be so convenient for everyone to just pay one company one time, and then Google would spread the money around; sure, that ought to work.
       South African technology firm Unlimited IT dispatched Winston, a pigeon,from its office in Pietermaritzburg, with some data for its main hub in Durban strapped to the bird's leg; it took Winston one hour and eight minutes to fly the data card; meanwhile, Unlimited IT tried to send the same data via the speedchallenged Internet connections provided by leading Internet Telkom , and that download was four percent finished by the time Winston arrived; so it's not only countries that start with "T" that have Internet problems.
       T-Mobile of Germany and Orange of France merged their yuppiephone operations in Britain, creating a new $13.5 billion company with 28.4 mobile phone customers; the Deutsche Telekom-France Telecom venture will be the biggest provider in the UK, with a 37 percent market share, larger than O2 of Telefonica.

Tuesday, September 22, 2009

Jasmine orders TT&T to cede control of Maxnet after ruling

       Jasmine International Plc has given TT&T Plc an ultimatum to stop operating a broadband internet service through an affiliate, claiming the business unit is majority owned by Jasmine.
       The parent of the provincial fixedline telephone and internet provider said it was asserting its right to take over Triple T Broadband, based on the fact that it owns a 91% stake in the internet provider.
       The assertion came in a letter to TT&T after the Central Bankruptcy Court approved the appointment of P Planner to prepare the debt rehabilitation plan for TT&T, according to a TT&T shareholder.
       The executive said TT&T had threatened to cancel broadband bill payment services at its nationwide customer service centres for Triple T if Jasmine takes over the business. In addition, TT&T threatened to sue Jasmine if the latter cuts off its copper cable or optical-fibre network without permission.
       In the letter, Jasmine ordered TT&T Subscriber Service, another subsidiary of TT&T, to stop managing the MaxNet broadband service as it is causing confusion among customers. Jasmine said it neither hired nor requested TT&T Subscriber to run the business.
       Triple T Broadband has not run the business in compliance with Jasmine's policies and disagreed with its manage-ment plan, which is causing severe damage to the broadband unit, Jasmine said.
       Also, as TT&T is entering into rehabilitation, it urgently needs to put most of its efforts into restructuring debt, creating a new business plan and restructuring the organisation, Jasmine said."We want TT&T to stop running the broadband management and revenue collection,and transfer customers from its network."
       TT&T is planning to restructure 21 billion baht in debt. Of all, 18 billion baht consists of long-term obligations of five to 10 years, and the remaining 3 billion represent supplier credits. Of that amount,45% of the debts are owed to a dozen local financial institutions, with the rest to foreign creditors.
       Jasmine also said that TT&T could not ban customers from paying bills at its facilities because the company had informed the Revenue Department that Triple T was allowed to legally use the centres for bill services.
       "We have the right to fully control the broadband unit and TT&T has no right to intervene," the letter said, adding that TT&T held only a 9% stake in Triple T Broadband.
       Triple T, with 10 million baht in registered capital, previously was wholly owned by TT&T. But TT&T failed to inject money into the company when it needed to raise its capital to 110 million baht, resulting in Jasmine becoming the major shareholder.

Sunday, September 20, 2009

Ericsson aims to serve local 3G operators

       Ericsson is building its local professional services to grab emerging opportunities from the development of a local 3G mobile phone service.
       The Swedish telecom equipment manufacturer expects to see substantial growth in its local professional services next year. It hopes the new service will create a long-term revenue stream for the company over the next few years.
       The value of the professional services market exceeds the amount that needs to be invested over the next few years to develop a 3G network, said Peter Borjesson, vice-president of the network services division at Ericsson Thailand.
       The three major mobile-phone service providers - AIS, DTAC and True Move - plan to invest a combined 100 billion baht to set up local 3G networks.
       After establishing a strong footprint in the US and Europe, Ericsson is stepping up efforts in Thailand to bundle its professional services with sales of its 3G network equipment to position itself as a end-to-end 3G service supplier.
       The professional services unit covers management services, network deployment, systems integration and consulting.The company commands slightly more than 10% of the global professional services market. The professional services unit contributed 38% of total sales revenue last year. "The total number of subscribers in our managed operations is now 350 million, representing about 25% of total mobile phone users globally," said Mr Borjesson.
       "Given our competitive scale and skills, plus the local business presence, we are now ready to promote our services by working in partnership with network operators."
       More complex network architecture and the increasing trend for operators to outsource IT services, Mr Borjesson said the company would focus on its core businesses and trying to reduce costs for clients.
       Chinese firms are aggressively promoting their 3G network technology but this does not mean the business opportunity has closed for Ericsson, he said.
       Ericsson can draw strength from its global brand presence while smaller operators have yet to establish themselves. Ericsson won the first-ever agreement for a commercial end-to-end 3G system from Thai Mobile for a nationwide mobile network integrating GSM and 3G.

Wednesday, September 16, 2009

Telco buys cable-TV operator

       Taiwan Mobile Co, the country's second-largest phone carrier, agreed yesterday to buy cable television operator Kbro Co from Carlyle Group for NT$32.8 billion (US$1 billion) in stock and cash to become the market leader.
       "Carlyle will get 589 million shares in Taiwan Mobile and NT$440 million cash," Harvey Chang, president of the Taipei-based operator, said.
       "Carlyle will own 15.5% of Taiwan Mobile, making it the second-largest shareholder," the two companies said in separate statements.
       Chang seeks to use Taiwan Mobiles cable television business, its fastestgrowing division, to boost revenue from so-called convergence services that combine phone, Internet and television. The transaction will raise its share of the cable television market from 6.6% to 32%, with almost 1.6 million customers,making it the industry's largest provider.
       "The deal makes strategic sense as it gives them better economies of scale,"said Vivek Couto, executive director of Hong Kong-based Media Partners Asia Ltd."The growth in cable TV will come from the switch to digital TV and broadband Internet, where they can boost revenue per user."
       Couto estimated the combined company would surpass China Network Systems Inc, controlled by MBK Partners Ltd, and Taiwan Broadband Communications, owned by Macquarie Media Group, by number of subscribers.
       "The transaction is based on a mutually agreed price of NT$55 apiece for Taiwan Mobile stock," the carrier's spokeswoman Rosie Yu told Bloomberg News, without providing further details.
       Revenue at Taiwan Mobiles cable TV and broadband Internet division climbed 22% in the second quarter from a year earlier to NT$1.34 billion, the only one of its three operating divisions to record sales growth, according to a company presentation.
       Consolidated revenue for the company dropped 1% to NT$17.4 billion during the period, according to the presentation.
       "The most significant part of this transaction on the long-term business implication is we have acquired direct access to more than a million households in the urban areas," Chang said."That will provide us with a very substantial platform to provide the convergence services."
       Carlyle, the Washington-based private equity firm, bought a majority stake in Kbro in 2006.
       The cash payment would be made from Taiwan Mobiles existing holdings while the company may seek to refinance approximately NT$24 billion in debt it will assume as part of the transaction,spokeswoman Josephine Juan told Bloomberg News.
       "The shares will be issued out of Taiwan Mobiles existing treasury shareholding," she said.
       "Taiwan Mobile may sell corporate bonds or sign a syndicated loan as it looks to reduce the interest burden on the debt it will assume," Juan said.
       "Taiwan Mobile expects to close the deal within nine months after getting shareholder and regulatory approval,"she said.

AIS will co-operate on 3G resources with TOT

       Advanced Info Service says it welcomes TOT Plc's decision to share its resources in providing third-generation or 3G mobile phone services and expects its revenues from 3G to rise 5-10%.
       AIS chief executive Wichien Mektrakarn said the 3G services, operated by its subsidiary Advance Wireless Network (AWN), would help raise its revenue by at least 5-10%. The business is much more lucrative than voice services in which it has to share 30% of postpaid revenue and 20% of prepaid revenue with TOT.
       AIS set up AWN to apply for a 3G licence on the 2.1 Gigahertz spectrum.
       As a concessionaire of TOT, AIS is willing to share its resources and ready to co-operate with the state telecom enterprise but more details need to be discussed.
       For instance, Mr Wichien said that in most cases AIS could allow TOT to share its resources and space rents at base stations. But for some stations where the transmission capacities are full, AIS could not allow TOT to share the resources, he said.
       Meanwhile, TOT board spokesman Ratian Srimangkol said the TOT board would not worry about a dwindling revenue share from AIS if the mobile-phone operator migrated its existing 28 million customers to its subsidiary AWN through attractive promotions. This was because TOT strongly believes that not all of AIS's customers need data services and many would be reluctant to pay more for 3G services.
       They would still adhere to the 2.5G service provided by AIS which is operated under the concession from TOT.
       He also said TOT's scheduled introduction of 3G services would be moved forward to Dec 2 from Dec 5, with the first phase covering Bangkok and having 500 base stations for 550,000 numbers.
       Four telecom operators have shown interest in being TOT's mobile virtual network operators.
       Mr Ratian said TOT was currently in talks as well with DTAC and True Move to share resources for 3G services.
       At the same time, National Telecommunications Commission chairman Gen Choochart Promprasit said a public hearing for 3G licensing regulations and auctions would be held on Sept 28.

Tuesday, September 15, 2009

CAT gauges Hutch value

       CAT Telecom says it will hire a financial consultant this week to assess the value of the Hutchison CDMA mobile network covering 25 central provinces before concluding a takeover deal within 60 days.
       Krisada Kaweeyarn, executive chairman of the CAT board, said the takeover would allow the state telecom enterprise to integrate marketing and apply a singlenetwork strategy also in its own CDMA network covering the other 51 provinces.
       Hong Kong-based Hutchison has invested 40 billion baht in the Hutch CDMA network and operates it under a subsidiary named BFKT.
       The network was leased to CAT to provide service. Hutchison CAT Wireless Multimedia, a joint venture held 26%by CAT and 74% by Hutchison, is the marketing arm of the service. The service has only 900,000 customers in a market of 65 million, as CDMA has struggled to compete with the GSM mobile standard.
       Mr Krisada said that a buyout proposal had been talked about for two years.
       CAT's provincial CDMA network has a capacity of 3 million numbers but only 300,000 users.
       The buyout will be among the challenges for CAT president, Jirayuth Roongsrithong, whose appointment was endorsed on Sept 9 by the Finance Ministry. His performance will be evaluated every six months.

Sunday, September 13, 2009

TRUE SEEKS CHANGE IN 3G AUCTION RULES

       CEO calls for level playing field for local and foreign operators
       True Corp chief executive officer Supachai Chearavanont has called for a review of some conditions of the auction of 2.1GHz-3G spectrum licences to create a level playing field for Thai and foreign telecom operators.
       One condition set by the National Telecommunications Commission (NTC) requires bid-winners to pay for the licences in full within 14 days of the auction.
       True is the parent of True Move, the only cellular operator without a foreign strategic partner.
       Advanced Info Service has teamed up with Singapore Telecom, while Norwegian telecom giant Telenor is partnering Total Access Communication.
       The NTC, which intends to auction four of the licences in December, will hold a public hearing on the auction guidelines on Sept 28. NTC chairman Choochart Phromprasid said late last week that some auction conditions could be changed after the hearing to lessen the burden on bidders.
       True simply cannot compete with the foreign operators in terms of funding, Supachai said.
       "Do you want us to be knocked out? I'll demand at the public hearing that some auction conditions be amended, and I'll fight until I'm knocked out," a laughing Supachai said.
       If the bid-winners have to spend a great deal to win the licences, they are likely to pass the burden on to customers, who will ultimately be the ones who suffer, he said.
       Aside from having had to spend considerable sums to develop the 3G network and service, the bid-winners will also have to set aside funds to keep up as the network evolves to incorporate 4G technology and beyond, Supachai said.
       A telecom industry source said it appears that True has no choice but to seek a partner in order to raise the necessary funds to bid for a 3G licence and develop the service.
       The cost of rolling out a 3G network has been estimated at about Bt20 billion a year for the first three years.
       True is in the process of deciding whether to bid for the licence first and seek a strategic partner later, or do it the other way round, Supachai said.
       The firm has reportedly been approached by several foreign telecom operators about entering into a strategic partnership.
       Agricultural conglomerate Charoen Pokphand Group owns about 58 per cent of True.
       The telecom operator is keen to bid for |the 15 MHz-bandwidth licence, Supachai said.
       The NTC will auction off four 3G licences; one with a bandwidth of 15 MHz and three with 10 MHz bandwidths.
       In a separate development, TOT spokesman Rathien Srimongkol said late last week that the firm's 3G network would be up and running before the NTC completes its auction process.
       TOT is upgrading its 1,900 MHz cellular network in greater Bangkok to incorporate 3G technology. The upgrade is scheduled to be finished in early December.
       TOT will also spend about Bt20 billion to roll out a new 3G network nationwide for lease to a telecom operator, which will provide retail 3G services. The project is awaiting Cabinet approval.
       The NTC has barred TOT from bidding for a 3G licence, as it has its own 1,900 MHz spectrum band, which is part of the 2.1 GHz spectrum.
       The issue of whether CAT Telecom can enter the bidding has yet to be resolved. The Finance Ministry owns 100 percent of both CAT and TOT, while TOT owns the 1,900 MHz spectrum.

Saturday, September 12, 2009

Hutchison selling network to CAT

       CAT Telecom is expected to wrap up negotiations to buy the Code Division Multiple Access (CDMA) 2000 1-x cellular network in 25 provinces from Hong Kong telecom giant Hutchison Telecom in December.

       CAT's chairman of the executive committee, Krisda Kaweeyarn, said yesterday that the Hong Kong telecom informed CAT two weeks ago its agreement to sell the network to CAT.
       In the next step CAT will appoint a financial adviser to conduct due diligence in the transaction while asking Hutchison Telecom to sign the network sales memorandum of understanding with CAT.
       "After the MoU, we'll talk with Hutchison Telecom on more details of the network purchase. We expect to conclude the deal in December," he added.
       CAT operates its CDMA network in 51 provinces, while Hutchison-CAT Wireless Multimedia provides the cellular service on the separate CDMA network in 25 provinces under the Hutch brand and under CAT's service-marketing agreement.
       Hutchison-CAT, the join venture of CAT and Hutchison Telecom, has leased the CDMA network in 25 provinces from BFKT, wholly owned subsidiary of Hutchison Telecom, to provide the cellular service. CAT wants to merge the two separate CDMA networks to enhance the service offering.
       Krisda said that after the complete transaction, CAT would terminate the BFKT network-leasing agreement and Hutchison-CAT service marketing agreement. Then CAT will seek a partner to jointly provide the service on the merged network.
       He said that telecom operators in the US, China, South Korea and Japan have shown interest in being CAT's partner in the matter, given that they have provided the CDMA service in their countries as well.
       In a related matter, the CAT board directors will convene on Wednesday to officially appoint Jirayuth Rungsrithong as the state agency's new president.

Tuesday, September 8, 2009

Bangkok ready for 3G trial

       After years of waiting, Thailand's number two mobile operator DTAC has finally launched its 3G service on a limited trial basis in Bangkok on the 850 MHz frequency.But behind the cheers and promise of a revolution in broadband access, the future of 3G - and indeed 4G - remains as cloudy today as it ever was.
       Speaking at the pseudo-military styled launch, DTAC CEO Tore Johnsen spoke of the advent of 3G in Thailand as a revolution in broadband Internet access.Broadband penetration in Thailand reaches only 2 percent of the population,with sixteen million users. The world average is 10 percent. Closer to home,comparable markets such as Vietnam and Malaysia have double and four times Thailand's penetration, respectively.
       The situation is the way it is because 75 percent of people in Thailand do not have access to a fixed line and therefore have missed out on the first phase of broadband through ADSL (asynchronous digital subscriber line). Furthermore, half of Thailand's seven to eight million phone lines are concentrated in Bangkok.
       On the other hand, Thailand has virtually 100 percent mobile penetration and DTAC believes that mobile will be the way forward for Internet access.HSPA (high speed packet access) 3G has the potential to provide true broadband access to everyone wherever,whenever and on whatever size screen is needed.
       DTAC Chief Strategy Officer Roar Wiik Andreassen explained that the first phase of the non-commercial trial, and he did stress that it was a free, noncommercial trial, consisting of 18 base stations in Bangkok starting around the Sam Yan area.
       DTAC maintains its earlier statement that there is no need for technical trials of 3G given that it is a very mature and stable technology. Rather, these trials were aimed at better understanding the usage patterns and expectations of Thai consumers.2,000 volunteers were selected from over 10,000 applicants consisting of teens, young adults, working professionals to test their user experience gather feedback for the future commercial 850 MHz and 2100 MHz 3G launches.
       The focus at this time is very much the big screen (the notebook, as opposed to a handheld smartphone) and USB modem stick.
       850 MHz 3G does suffer from a lack of handsets in the local market with most phone manufacturers choosing to import European 900/2100 MHz 3G phones rather than the mainly Australian 850/2100 handsets. Andreassen said he was in talks with handset manufacturers,including, but not limited to, Nokia, to provide more 850/2100 phones in the market.
       "Today, the Apple iPhone and Blackberry Bold are both 850/2100 so there are 850-ready handsets, but we are not happy with the current 850 situation and we would like to encourage more 850/2100," he said.
       More generally across Asia, it is still very much open as to whether 850/2100 or 900/2100 is more important to handset makers. In Europe, many telcos are eager to refarm GSM 900 for HSPA, as it provides much better long-range coverage and penetration than 2100.
       The network is an HSDPA (downlink)and HSUPA (uplink) network with a theoretical maximum downlink speed of 7.2 MBPS. Users can expect 500 KBPS during peak times and around 1 to 1.5 MBPS typical speeds off-peak.
       For the test phase, no particular Inter-net technology will be blocked as this is very much about learning about what users use mobile broadband for.
       While some mobile operators in the west have a strong aversion to Skype and all forms of Voice over IP, peer-topeer file transfers and and video streaming, Andreassen said that in general,blocking something only makes the customer angry and it is better to manage usage probably through capped usage quotas and reduced speeds once the cap is reached, rather than blocking something outright.
       Pricing has also yet to be decided.The only thing he said is that it would be a simple, flexible pricing plan, probably based on time rather than on data throughput.
       Andreassen said that DTAC is 100 percent focused on the big screen (notebook) for the period of the trial as the main market is broadband in a country with limited fixed line penetration. In the future, it will come to the small screen (handheld) and DTAC will reconsider its position on 3G there later.
       "I think the picture will become blurry with the new Nokia [N900 tablet]. It will be more about where you use it,and for what kind of content," he added.
       DTAC has two 5 MHz blocks in the 8503G spectrum left over from its old analogue 1G days, though there has been a lot of heated discussion in the past as to whether it can be simply upgraded to 3G or whether doing so constitutes a new contract.
       This was referred to what is called the Section 22 committee, referring to the clause in the contract with the then Communications Authority of Thailand as concession holder that shall decide whether 850 MHz 3G is an upgrade or a new network entirely. If it is deemed a new network, it would not be allowed under the existing agreement.
       Earlier this year, DTAC CEO Tore Johnsen expressed his frustration with CAT for allowing True to use what DTAC considered to be its 1G frequency for its 3G trials and also for CAT throwing the matter to the Section 22 committee,as AIS did not face the same degree of red tape from its concession holder,TOT.
       So what happened in the past six months that led to today's launch? Andreassen was not eager to talk about the legal and regulatory mess and chose his answer carefully.
       "We decided to discuss with CAT and go into cooperation that allowed us to launch 850, non-commercially.When it comes to the future, a commercial launch is still pending with the regulator and section 22 for both ourselves and TrueMove," he said.
       So is he happy with TrueMove's use of what is supposedly DTAC's frequency and pseudo commercial trials?"I'd rather talk about what we are doing today," he said.
       Later, he did say that the network was using only one of its two 5 MHz channels and that the other could be turned at any time, thereby implying that the 2.5 MHz frequency overlap with TrueMove was somehow resolved.
       Asked how much existing equipment can be used for the new networks legally and technically, the CSO explained that for the new trial project, around 80 percent of the Huawei supplied HSPA 850 equipment could be reused for a 2100 MHz 3G rollout if a license was granted.
       However, because of the legal uncertainty around the section 22 committee, none of the existing 1800 2G infrastructure was being used for the 850 MHz trial and hence for all intents and purposes, the 8503G trial is a totally separate network.
       So what of the future? When can we expect commercial 3G in Thailand? Andreassen said that the regulator (National Telecommunication Commission) still has not finalised the conditions of the 3G auction yet. DTAC would of course want to participate in the auction and was intending to bid for 10 MHz of frequency (two channels). However,there are still too many variables unanswered, such as access to 3G assets and roll-out requirements to put a value on the different licences.
       And what of 4G LTE (Long Term Evol-ution)? Many countries have now started their 4G LTE tests with many commercial roll-outs expected as soon as next year,Andreassen did say he hoped the NTC would issue technology neutral licences rather than a licence tied to 3G technology. By simply managing spectrum,a 4G upgrade would be relatively painless, but again, the regulator has not yet indicated how this will for the licences to be bid on.
       "We expect 2.1 3G licences to be issued this year, after which we can expect a commercial launch in six to nine months.
       "When it comes to 850 it is still very hard and in meetings and discussions.I really don't know," he said.

Monday, September 7, 2009

TT&T wins arbitration case against TOT

       TT&T won a third arbitration case over TOT Plc involving 2.3 billion baht concerning a revenue-sharing dispute.
       The victory was reported to the Stock Exchange of Thailand yesterday.
       But TOT plans to lodge an appeal with the Administrative Court over the arbitration court's ruling that it pay 2.3 billion to provincial fixed line operator TT&T over a revenue-sharing dispute seven years ago.
       TOT president Varut Suvakorn said TOT would protect its right to appeal,which means the case might take years before a final verdict is reached.
       TT&T won two earlier arbitration cases, the first involving 23 billion baht in compensation.
       Mr Varut said if a final ruling by the Administrative Court favoured TT&T,then TOT would comply. But he added he was sure TOT did not have the cash to pay such an amount.
       A shareholder of TT&T said the latest case filed by TT&T related to unfair revenue collection by TOT for long-distance call service. He added if TOT appeals the process might take as long as 10 years. But he was optimistic that although the case was far from over, its third consecutive victory should give TT&T more bargaining power in other disputes.TT&T filed four cases against TOT.
       In the first case TT&T filed against TOT, it demanded 23 billion baht in compensation after TOT allowed mobilephone operators to connect to its provincial network and collected 200 baht per month per number from each mobile phone operator.
       TT&T shares rose 4 satang to close at 71 satang in trade yesterday worth 52.9 million baht.

Thursday, September 3, 2009

Serving the nation

       Your CAT board of directors gave an ultimatum to the underwhelming team in charge of the CDMA yuppiephone service available and widely ignored in 51 provinces, and currently along with Hutch ranked as No 4 in the nation: Give us 500,000 customers by the end of the year, or you will be revamped; board spokesman Krisada Kaweeyarn refused todefine "revamped," but it can't be good; the CAT board noted that the managers are adding about 5,000 users a month to the claimed 350,000 subscribers, when the three leading services are gaining that many subscribers in a typical day;meanwhile Hutch, available in 25 provinces in and around Bangkok, claims to have about 900,000 users.
       Your CAT Telecom announced it will try to push Hutchison Group out of the Bangkok-area CDMA service by New Year's Eve; the ever-rancorous Hutchison CAT Wireless Multimedia firm known as Hutch is 75 percent owned by the Hong Kong firm, but CAT has wanted it all for some time.
       No 1 yuppiephone network Advanced Info Service of Shingapore gave yet more gloomy news to its shareholders;managers revised revenue growth and planned expenditures downward again,given a horrible first quarter; Pornrat Janejarassakul, president for vice, said it had reduced total costs in a companywide belt-tightening, and still expected to make its target of 15 percent rise in free cash flow; but profit was down 33.7 percent year on year in the second quarter to 4.2 billion baht, and revenue fell 6.5 percent to 23.5 billion; it that was bad, Mr Pornrat saved the worst for last:"The 43 percent reduction in our international roaming revenue in the second quarter plunged to a record low." No 3 yuppiephone firm True Move of Thailand reported that revenue in the second quarter grew 2.4 percent year on year to 5.6 billion baht; interconnection charges were down, the company ordered in-house belttightening, and non-voice revenue grew by a healthy 7.3 percent.
       Also smiling was Electricity Generating Authority of Thailand (Egat) governor Sombat Sarntijaree; electricity usage in August was up by two percent,the first rise in almost a year; Mr Sombat believes that is a sign the economy is coming back; the country burned up almost 8.3 billion kilowatt/hours in the first 20 days of August; that was higher than consumption last October, when electricity use began to fall each month,year on year; annual economic growth is still well below zero.
       Four seats are coming vacant on the National Telecommunications Commission, and the frantically busy Information and Communications Technology Minister Ranongruk Suwanchawee was working hard to fill them; until she does, the NTC will continue its hard work with just three members; three of the original Magnificent Seven drew short straws to see who would be first to end their terms, and a fourth seat was left vacant when board member Artorn Chantvimol resigned; at the moment,35 people have applied to serve the nation selflessly as NTC members.The National Telecommunications Commission managed to register 4,500 community radio stations in its scheme to control the airwaves; the NTC convinced almost all owners of stations that if they did not register, they would be deemed illegal; the NTC has decreed that the stations can continue to broadcast for a year without any sort of licence,although the commission also claims the right to close any station for broadcasting bad stuff; it is not known how many stations rejected the NTC control,although the voice of the People's Alliance for Democracy (PAD) flatly refused to register.
       Asia Books , a success story in the 20th century, blamed a drop in tourists for flat sales so far this year; sales to foreigners have dropped 30 percent since January, with sales to Thais up by 10 percent, although managing director Phumate Manuphibul said prospects for the second half of the year look brighter; some wonder, however,whether Asia Books' reluctance to get into the e-book business has some effect.Electronics manufacturers reported their sales were rising again, and collectively they are using 80 percent of capacity as third-quarter performance built on the recovery in the second quarter; big firms like Cal-Comp Electronics (Thailand)and Western Digital saw surging profits in the second quarter, and are taking on staff again to keep up with demand,especially from overseas.
       Kodak (Thailand), which can hardly sell a camera any more, said it expects 2009 revenue to at least match last year's mark, by stressing printing of photos;the company is pushing Kodak Kiosk and Kodak Express Digital Online, and claims customers love the convenience;by next month, Kodak should have kiosks in post offices. Photos flourish on paper, and so does advertising;Thailand Post said actual mail delivery rose from 1.05 billion letters in 2005 to 1.3 billion last year; but the type of letter has changed;"The number of letters has increased over the past four years,but most of them are business letters,"said Wiboon Sereechaiporn, assistant president for vice; most letters these days are company mail and advertising,as people move to the computer for their correspondence.