Total Access Communication Plc (DTAC) is rushing to conclude negotiations with its concession owner CAT Telecom to upgrade its unused bandwidth on the existing 1800-megahertz spectrum for providing 4G service.
The move comes after the country's second-largest mobile operator failed to win an 1800-MHz licence to provide next-generation wireless broadband service.
"We are eager for an approval to be settled soon," said Prathet Tankuranun, chief technology officer of DTAC.
The company has asked CAT to let it use 20 MHz of unused bandwidth on the 1800-MHz spectrum to provide 4G service under the 2G mobile concession terms.
DTAC has 50 MHz of bandwidth on the 1800-MHz spectrum. The company is using 25 MHz on the spectrum to provide 2G mobile service.
DTAC returned the unused 5 MHz, out of 25 MHz, of spectrum to the National Broadcasting and Telecommunications Commission (NBTC) for last week's auctions, under a trade-off that let DTAC upgrade 10 MHz of bandwidth on the existing 1800-MHz spectrum for providing 4G service.
The company has the remaining 15 MHz on the frequency reserved for 2G mobile service.
Mr Prathet said that while DTAC failed to secure a 4G licence, the company already provides 4G service on the 1800-MHz spectrum with 700 base stations.
"We aim for at least 10 million users to migrate from our 3G network on the 2100-MHz spectrum to the 4G network on the 1800-MHz band by 2016," he said.
The 1800-MHz spectrum auctions ended with prices far beyond the real spectrum value, in DTAC's view.
"We [DTAC] estimated the value of the spectrum at 17 billion baht, about the same as our last bidding price," Mr Prathet said.
DTAC plans to increase the number of 4G base stations on the 1800-MHz spectrum to 1,800 sites this month, covering mainly Bangkok and suburban areas.
DTAC's 4G operating costs under the current 30%-revenue sharing deal with CAT are still lower than the costs on the 1800-MHz spectrum if DTAC had won a 4G licence, Mr Prathet said.
Unlike mobile leader Advanced Info Service, DTAC has abundant bandwidth resources for providing 4G service. AIS has the least amount of spectrum.
In the worst-case scenario, Mr Prathet said DTAC could migrate its existing 3 million 2G customers on 15 MHz of the 1800-MHz spectrum to its other networks. The company could ask the NBTC to upgrade the bandwidth on the spectrum to provide 4G service.
DTAC's share price has fallen 10.7% since the 1800-MHz auctions finished on Nov 12, closing at 50 baht yesterday.
Jasmine International (JAS), another loser in the race, has dipped 4.6% to 5.25 baht.
As for the winners, Advanced Info Service (ADVANC) has eked out a 0.47% gain to 212 baht, while True Corporation (TRUE) has risen 1.09% to 9.30 baht.