3G Update: 3G network good to go in 2 months: CAT chief

3G network good to go in 2 months: CAT chief
By USANEE MONGKOLPORN
THE NATION

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CAT Telecom can switch on its third-generation HSPA network within two months, chief executive Jirayuth Rungsrithong said yesterday, shrugging off doubts over the deals the state enterprise made with True Corp.

CAT can start up the network service quickly as TrueMove is installing high-speed packet access (HSPA) equipment from its own network on to the code division multiple access (CDMA) network in 25 provinces of BFKT (Thailand) so that it will be HSPA-capable.

CAT will lease the HSPA network from BFKT of Real Future and wholesale capacity to reseller Real Move.

Jirayuth said Real Move and Real Future, both True Corp subsidiaries, and CAT had completed the appendices of some contracts they signed on January 27, and stressed that the appendices would benefit CAT.

The four main deals are for BFKT (Thailand) of Real Future to lease the HSPA network to CAT, for Real Move to resell the planned HSPA service, for BFKT to lease its CDMA network in 25 provinces to CAT, and for Hutchison-CAT Wireless Multimedia of Real Move to market the service on the CDMA network in 25 provinces.

On the signing date, Appendix 6 of the HSPA network lease between CAT and BFKT, regarding network capacity delivery in the first phase and the calculation of fines, was left blank. It just says the contractual parties will negotiate to finish this part as soon as possible.

Appendix 7, regarding the service-level agreement and fine calculation, was also left open.

Jirayuth said CAT was expected to gain at least Bt14 billion in revenue from reseller Real Move over the contract term of 14 years.

The deals CAT granted to the two firms raised questions about their legitimacy, including whether they have to come under the Public-Private Joint Venture Act of 1992.

Information and Communications Technology Minister Chuti Krairiksh sent a letter to the Attorney-General's Office last Friday asking for a ruling on whether the deals complied with all laws and regulations.

According to CAT, the new business would improve its EBITDA (earnings before interest, taxes, depreciation and amortisation), which would be high enough to offset its loss of revenue when TrueMove's concession expires in 2013.