National Telecom (NT) is in talks with Advanced Info Service (AIS) for a new partnership deal that would see the country's biggest mobile operator by subscriber base purchase 10 megahertz of bandwidth on the 700MHz spectrum range from NT.
Another 10MHz of bandwidth held by NT is targeted to be jointly developed by NT and AIS for mutual benefits of both companies.
There are other cooperation options on the table, including a joint venture that could develop their existing businesses together, such as fixed broadband networks, according to NT acting president Gp Capt Somsak Khaosuwan.
"We expect the deal to be concluded by next month," he said.
Gp Capt Somsak said NT also opened the door for talks with True Corporation, another major carrier, to pursue mutually beneficial cooperation.
NT was founded on Jan 7 last year through the merger of state telecom enterprises CAT Telecom and TOT.
NT holds 20MHz of bandwidth on the 700MHz spectrum range secured through a 2020 auction by CAT Telecom, as well as 200MHz of bandwidth on the 26-gigahertz range held by TOT.
He said any deal is facilitated by a royal decree that supports the convergence of technologies for the benefit of the country, which was put into effect late last year.
The decree was formulated based on Section 30 of the amended National Broadcasting and Telecommunications Commission Act to support the tech and innovation ecosystem.
The decree provides a more flexible criteria for operators to apply for additional business licences and transfer spectrum licences, as well as obtain spectrum licences via other methods other than holding auctions.
"The royal decree allows spectrum licence holders to transfer the right to use spectrum ranges to others, or some part of spectrum capacity," said Gp Capt Somsak.
"This creates very flexible conditions for a partnership model capitalising on spectrum ranges obtained from previous auctions."
NT management is looking into details of the royal decree, he said.
AIS holds a combined 1,450MHz of bandwidth on various spectrum ranges. True holds 1,020MHz of bandwidth and Total Access Communication (DTAC), another major carrier, holds 330MHz of bandwidth.
However, in terms of the 700MHz range, AIS holds 30MHz of bandwidth, while True and DTAC hold 20MHz of bandwidth each.
The planned merger of DTAC and True would give the new combined entity 40MHz of bandwidth on the 700MHz range, exceeding the capacity held by AIS.
"This is pushing AIS to seek an additional 10MHz of bandwidth on the 700MHz range to ensure it stays competitive with its rival," said a telecom executive who requested anonymity.
NT also wants to work with AIS to create added value for another 10MHz of bandwidth it holds on the 700MHz range, the source said.
According to Gp Capt Somsak, it is premature to specify the conditions of the cooperation with AIS, though there are various options on the table concerning NT's infrastructure, including fixed broadband service.
"If NT and AIS collaborate on their fixed broadband networks, this would create the biggest portfolio of fixed broadband service in the country," he said.