CAT Telecom expresses interest in bidding on 700MHz spectrum licences for 4G in the auctions scheduled for February.
Chief sees B15bn ceiling per licence
CAT Telecom has expressed interest in bidding for 700-megahertz spectrum licences in the auctions scheduled for February in the hope of using the range for its 4G service.
CAT Telecom president Sanphachai Huvanandana said the company hired Value Partners to conduct a feasibility study of the plan, with details expected to be concluded in early January.
Col Sanphachai said CAT aims to bid for 700MHz spectrum licences as a first priority and 2600MHz licences as alternatives.
CAT holds rights to the 850MHz band for providing 4G mobile service under partnership agreements and via its own mobile service brand, My. The concession for the spectrum holding expires in 2025.
“The 700MHz range is adjacent to the existing band on which CAT operates business,” Col Sanphachai said.
A total of 15MHz of bandwidth on the 700MHz range is up for auction on Feb 16. Three licences are to be allocated for the auction with a reserve price of 8.7 billion baht each.
CAT believes that the bidding prices will top out at 10-15 billion baht, Col Sanphachai said.
“CAT aims to boost the competency of its 4G service first,” he said, noting that the company may explore 5G service in the future.
If CAT decides to participate in the auctions, it will need to forward a resolution to the cabinet for acknowledgement, Col Sanphachai said.
Digital Economy and Society Minister Buddhipongse Punnakanta said the ministry is serious about backing CAT Telecom and TOT for participation in the 5G auction.
TOT and CAT Telecom are expected to help provide innovative tech services in connection with healthcare and transport for the public.
Mr Buddhipongse said the state telecoms don’t mean to compete for business with mobile operators.
“Personally, I think CAT is likely to be a prospective bidder, rather than TOT,” he said.
With the participation of CAT in the auction, it would be harder for the major operators to gain spectrum licences through secret negotiations, he noted.
Col Sanphachai said CAT Telecom aims to create 10 billion baht in revenue from digital business by 2025, or a 1,000% rise from 2019.
He said the company is likely to gain 900 million baht from digital business in 2019 and 1.2 billion baht in 2020.
Part of the revenue is from the Government Data Centre and Cloud Services (GDCC) run by CAT.
The enterprise’s digital services encompass cloud computing, smart solutions, the Internet of Things, big data analytics and cybersecurity.
In 2020, CAT’s total revenue is forecast to reach 39.6 billion baht with a net profit of 400 million baht.