Taiwan-based telecom giant Chunghwa Telecom (CHT) could become a business partner with the imminent National Telecom (NT) for 5G services, says a source at CAT Telecom who requested anonymity.
NT is scheduled to be officially established tomorrow through the merger of state enterprises CAT Telecom and TOT.
CAT Telecom and CHT have agreed to establish a joint venture, which would serve as a marketing arm for the 5G service on 700- and 850-megahertz spectrum ranges held by CAT, mainly targeting enterprises, according to the source.
CHT could hold a 75% stake in the venture, with CAT holding 25% in the initial stage, the source said. The venture would have registered capital of 800 million baht.
CAT Telecom and CHT planned to announce the joint venture yesterday, then postponed the move until after the merger.
The source said 5G collaboration under the venture would be discussed again by the NT board after the merger, though it was approved by CAT Telecom's board last year.
"CHT management is well aware of the merger of CAT and TOT," said the source.
The source said CAT Telecom negotiated with CHT for collaboration in solutions and strategies in connection with the spectra held by CAT, including 700 and 850MHz ranges.
Under NT, CHT could be subject to more cooperation as TOT holds other spectrum ranges which could be used for 5G services, including 2100-and 2300MHz ranges.
CHT's partnership deal with CAT started early 2020 when the telecom enterprise decided to join the 5G spectrum licence auction held in February last year.
"To provide 5G services efficiently, CAT needs to work with other global partners to provide practical solutions and strategies when foraying into the market," the source said.
CAT Telecom grabbed two slots of the 700MHz spectrum from last year's 5G auction while TOT gained four slots of the 26-gigahertz spectrum.
Before gaining its partnership with CHT, CAT had pitched proposals for a marketing partnership with eight global telecom operators and three of them were interested in holding talks, according to the source.
CHT was finally chosen as CAT's 5G service partner.
"When the planned ceremony to unveil the joint venture of CAT and CHT comes close to the official launch of NT, this needs to be postponed and the NT board must consider it instead," the source said.
CHT did not discuss the details of its action plan for business on CAT's 5G services, the source said.
TOT's 2100- and 2300MHz ranges are expected to add more benefits to the collaboration deal with CHT in terms of marketing strategy and service solutions.