The board of National Telecom (NT) is concerned about the company's business strategy and a 5G service roadmap as part of its attempts to generate sustainable revenue and estimate investment costs over the long run, says a source close to the board who requested anonymity.
NT was formed in January through the merger of state telecom enterprises CAT Telecom and TOT.
The board is worried about the lack of a 5G business plan, including clear estimates of investment cost for 5G service, the source said.
CAT Telecom secured 20 megahertz of bandwidth on the 700MHz spectrum range at last February's auction, at a cost of 34.3 billion baht.
The source said there is still no clear plan for the company's 5G business or long-term, sustainable income.
"While NT has a key role in serving as an alternative for public service, its business should follow a suitable model that can optimise benefits for the company and employees," the source said.
The board recently assigned the company's management to set up a working panel to explore business opportunities for 5G service, including evaluating existing deals the company has with other firms.
NT acting president Somsak Khaosuwan said NT board chairman ML Chayotid Kridakon made the assignment.
The source said NT is also in talks with two top mobile operators -- Advanced Info Service (AIS) and True Move H Universal Communication (TUC) -- for agreements on infrastructure-sharing on its 700MHz spectrum network, as well as roaming agreements to make use of the spectrum ranges they occupy, particularly the 2600MHz range.
The talks began in the third quarter last year between CAT Telecom and the two operators.
Under the infrastructure-sharing deals, NT would have to pay 20 billion baht for these partners to install related equipment and platforms on their existing telecom infrastructure, while the partners will be able to rent NT's telecom infrastructure.
NT has to bear at least 55 billion baht in costs, including spectrum licence expenses, to begin 5G service on 700MHz.
There is no clear indication of potential earnings, the source said.
CAT Telecom and Taiwan-based telecom giant Chunghwa Telecom (CHT) signed an agreement to establish a joint venture marketing arm for the 5G service on the 700- and 850MHz ranges held by CAT, mainly targeting enterprises.
The source said the deal sees CHT operate the marketing services, but it is not responsible for any sales targets.
"NT lacks confidence in its revenue sources and earnings," the source said.
"There are still no incentives from the government that could help the company expand, such as a supporting state agency using the firm's services."