National telecom pool slated for 2015

National telecom pool slated for 2015

Shared assets will drive digital economy

Power and  communication  cables hang close  to the crossover  at the Sathon-  Narathiwat  intersection  in Bangkok.  Authorities are  planning to pool  telecommunication  resources to  narrow the digital  divide. (Photo b Patipat Janthong)
Power and communication cables hang close to the crossover at the Sathon- Narathiwat intersection in Bangkok. Authorities are planning to pool telecommunication resources to narrow the digital divide. (Photo b Patipat Janthong)

The government plans to set up the country's first national broadband firm this year to manage and operate the telecommunications infrastructure assets pooled by the public and private sectors.

Information and Communication Technology (ICT) Minister Pornchai Rujiprapa said the development was part of the master plan for a digital economy.

Major state enterprises and private companies with telecommunications networks are expected to form the National Broadband Co to share network capacities to reduce investment redundancies in telecom infrastructure, increase network efficiency and lower network service fees.

He said the holding company would combine several telecom assets ranging from fibre-optic cables and telecom towers to transmissions into a "national telecom network".

Mr Pornchai is a member of the national broadband committee chaired by Deputy Prime Minister MR Pridiyathorn Devakula.

He said many state enterprises and companies including True Corporation had submitted their lists of telecom assets to the committee.

Members will transfer their network assets to the holding company in exchange for a shareholding stake.

"The National Broadband Co will be jointly operated by the government through the Finance Ministry and the private sector," Mr Pornchai said.

He said the company would be aimed at serving the government's affordable broadband service plan and increase internet penetration in Thailand and reduce the digital divide.

"We plan to bring broadband access to each district by 2016 and all villages by 2017, up from 70% and 50% now, respectively," Mr Pornchai said.

TOT Plc and CAT Telecom have a combined 150,000 kilometres of fibre-optic cable lines nationwide.

The fibre-optic networks of the Electricity Generating Authority of Thailand and other telecoms run 50,000 kilometres.

TOT also owns 15,000 base stations from its second-generation (2G) mobile concession holder Advanced Info Service Plc (AIS), 5,320 base stations for its own 3G network under the first phase and 300,000 cement telecom poles nationwide.

AIS's 2G mobile service concession will expire in September 2016.

CAT Telecom owns 32,000 mobile base stations, comprising 20,000 stations under concessions, 1,800 stations it owns and 10,000 stations under a wholesale-resale agreement with True's subsidiaries.

The telecom network pool is aimed at creating synergy among existing networks owned by state agencies under the ICT, Energy, Education and Public Health ministries. It would share or lease networks to other operators to provide services that increase the country's internet access and penetration.

Nationwide internet access is critical for a digital economy, and a telecom pool could help to develop broadband access at lower tariffs, Mr Pornchai added.

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