NESDC rejects NT’s 5G business plan


The headquarters of National Telecom. Mr Chaiwut suggests he is not sure how NT’s 5G small business will fare in the future.

The Countrywide Economic and Social Progress Council (NESDC) has rebuffed Countrywide Telecom’s (NT) 5G company approach to capitalise on the 700-megahertz spectrum selection, according to a supply at the Electronic Overall economy and Society (DES) Ministry.

The source, who asked for anonymity, claimed the NESDC indicated the approach was fiscally unfeasible.

The NESDC final decision disrupts NT’s extensive-delayed plan to make use of the spectrum, which was secured from an auction in February 2020, the source explained, including it was unsure when the firm’s 5G small business could go forward.

There is no distinct timeline for when the program will be adjusted, the supply stated.

NT was developed by way of the merger of state enterprises CAT Telecom and TOT in January 2021.

CAT Telecom received 20MHz of bandwidth on the 700MHz vary for 34.3 billion baht via a 2020 auction, but the frequency has but to be applied.

DES Minister Chaiwut Thanakamanusorn instructed the Bangkok Post he was mindful of the NESDC’s determination and was doubtful how NT’s 5G company would fare in the foreseeable future.

“Various alternate options have been floated due to the fact previous year. Amongst them is the return of the spectrum to the regulator for reallocation, but this notion can result in a essential stress,” he stated.

Mr Chaiwut mentioned the return of the spectrum also risked a authorized backlash.

Some observers indicated returning the frequency could entail a hefty wonderful, and NT officers may obtain it hard to pursue this class as they threat prison lawsuits related with dereliction of responsibility.

A telecom veteran who requested anonymity said the spectrum price tag of 34.3 billion baht is about double that of equivalent ranges held by more substantial rivals in the sector.

“The 34-billion-baht licence, moreover a extensive-expression investment decision of 100 billion in money expenditure and operational cost, demands prudent thing to consider to guarantee the outlay will not bring about huge hurt to the firm’s economical position in the long term,” the veteran reported.

NT earlier picked primary mobile operator Sophisticated Information Assistance (AIS) as its small business husband or wife for the 700MHz organization.

No settlement has been signed still, as the offer still desires to pass by way of NESDC vetting and be acknowledged by the cupboard.

Less than the deal, AIS will pay back NT’s remaining prices to the regulator for 10MHz of bandwidth on the frequency.

NT would hire AIS’s cellular community and associated devices in order to supply its 5G companies on the remaining 10MHz of bandwidth, with a rental fee paid out to AIS right up until the spectrum licence expires.

As element of the deal, AIS would also aid NT products and services by long term community collaboration.

The deal allows NT conserve on spectrum rate payments, however it still has to pay a rental price for AIS’s mobile network.

AIS, which already has 30MHz of bandwidth on the 700MHz spectrum, could maximize its bandwidth to 40MHz by using the offer.

In December 2021, NT declared a enterprise partnership with Taiwanese firm Chunghwa Telecom (CHT), cellular digital network operator The WhiteSpace, and electronics company Delta Electronics (Thailand) for 5G personal network cooperation.

In September this yr, NT announced a partnership with CHT to establish wise answers for enterprises by the 5G private community.

The alternatives are anticipated to be supplied setting up in July subsequent yr.

Maria Flores

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