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.