Dr Thongchai Yongcharoen, president of the Telephone Organisation of Thailand (TOT), announced the joint venture yesterday.
3G technology is the latest mobile telecom technology, enabling users to access higher speed voice, data, and video than the current second-generation wireless application protocol (WAP) mobile phones.
Current handsets have a maximum speed of 28.8 kilobits per second, compared to 3G's massive 2 megabits per second potential.
NTT DoCoMo, an arm of the Japanese telecom giant NTT, is expected to be the first operator in the world to inaugurate 3G services next year.
European mobile operators are expected to follow closely behind. The UK recently held its bidding process for 3G licenses, while Germany is in the process of beginning its bidding process.
Thongchai said commencement of the 3G service was likely in 2004, inaugurated by a yet-to-be-formed joint venture involving the TOT, the Communications Authority of Thailand (CAT) and Aeronautical Radio of Thailand (AeroThai).
Thailand's allocation frequency committee has allocated four 3G licenses of which only one so far has been given to the yet-to-be-formed joint venture. A bidding process was "not required."
The Transport and Communications Ministry initiated the joint venture last year to provide a 1900 MHz system mobile-phone service as the first step before moving up to 3G.
"If the 3G service can make a hit in the global market, we may well start the 3G service earlier than expected," Thongchai said.
The TOT recently completed an experimental project on 3G development with the assistance of NTT DoCoMo.
Finland was the first country to grant a 3G license early last year, followed by New Zealand and the United Kingdom. The auction of licenses drew bids totalling more than US$35 billion.
In Asia, Japan took the lead followed by Singapore, South Korea, Hong Kong and Taiwan.
"Actually, who starts this first is not as important as who can provide the best service," Thongchai said. But without a wide range of content, 3G services would mean nothing, he said.
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