The second-ranked mobile-phone operator DTAC remains undecided about its third-generation (3G) future, believing that next-generation mobile broadband is unlikely to materialize in Thailand this year.
The company also made a U-turn and agreed with CAT Telecom's proposal that it join third-ranked True Move in a 3G trial service on DTAC's existing analogue 850 Megahertz frequency.
Earlier, DTAC had threatened to take legal action against CAT Telecom, its concession provider, saying the state telecom enterprise violated the terms of its existing concession in doing so.
CEO Tore Johnsen said DTAC remained undecided on how best to move forward on the road to 3G, as the National Telecommunications Commission (NTC) has yet to lay down a 3G policy and licensing agreement.
However, he said DTAC now had three options. First, it could upgrade its analogue 850-MHz bandwidth to accommodate high-speed download packet access (HSDPA), the technology that gives it a more competitive network coverage at lower investment costs. But if DTAC chooses this course of action, it would need to share 25 percent to 30 percent of its revenue with CAT Telecom over the remaining eight years of its concession life.
The second option involves investing in a new 2100 MHz frequency under a new licensing agreement, likely to stipulate a lower revenue-sharing proportion.
The other option is a combination of the other two--upgrading its existing network and investing in a new one.
If it upgrades the network, Mr Johnsen said Bangkok, Chon Buri and Phuket would become the first to have 3G.
But if it decides to invest in the 2100 MHz frequency, DTAC would have a nationwide 3G coverage over the next four to five years.
"The size of our 3G investment would depend solely on the regulations and agreements set by the NTC," he said.
Mr Johnsen also said he expected to see between four million and five million new mobile numbers this year, compared with up to eight million last year.
"Given the 100 percent penetration rate of mobile phones in Thailand, we expected to see low growth in the Thai market this year."
He said DTAC planned to reduce its 2009 capital expenditure in face of the flagging economy and saturated local mobile market. Its capital expenditure last year was 11 billion baht.
The company would also cut its marketing spending by 10-15 percent from last year's one-billion-baht (US$28,609) budget.
Mr Johnsen said DTAC would focus on improving profitability and cash flow this year, instead of acquiring new subscribers. Customer retention would also be another focus area.
DTAC introduced an auspicious SIM card yesterday called "SIM Jia Yoo Ee, SIM Nee Na Chai", a promotion for the Chinese New Year festival, the first marketing activity in four months since the new CEO took its helm on Sep. 1, 2008.
The campaign plays with 9, an auspicious number according to Chinese beliefs. There are 99,999 cards, all featuring 9 in the phone numbers. Customers will be charged 99 satang a minute for all outgoing calls to any network around the clock. The 99-baht refill card is good for 99 days.
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