CAT board gives nod to Tesco 3G venture

CAT board gives nod to Tesco 3G venture

TECH
CAT board gives nod to Tesco 3G venture
The Tesco Lotus-CAT Telecom joint venture has come about only after a year of negotiations. PAWAT LAOPAISARNTAKSIN

Hypermarket chain Tesco Lotus has finally entered into a joint venture agreement with CAT Telecom Plc to provide third-generation (3G) wireless broadband services under the mobile virtual network operator (MVNO) model, after a year of negotiations.

The 50:50 venture contract between the retail giant and CAT is expected to be signed early next year, while commercial service would be launched in mid-2016.

The CAT board yesterday approved the venture, said CAT acting president Col Sanpachai Havanandana.

He said Tesco wanted to have its own mobile service to tap the growing online shopping market.

CAT has almost 3 million MVNO customers on its 850-megahertz network under its own brand "My".

A MVNO is a company that provides mobile phone services but does not have its own network.

"Tesco will become our partner to provide mobile services," said Col Sanpachai.

Earlier, Tesco submitted its proposal to use CAT's mobile network to provide 3G services for its 5 million customers. Tesco wanted to purchase CAT's SIM cards in a big lot to develop mobile content to serve shoppers.

Col Sanpachai said CAT and Tesco will discuss details of the formation of the venture company and business structure.

Data CDMA Communication Co will be the second company to provide 3G services under the MVNO model for CAT, after it signed an agreement last month, he added.

"We are still open to other potential companies to participate in our mobile business," said Col Sanpachai, adding that four firms have been in talks over such a collaboration.

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