AIS to roam on TOT’s 2100-MHz spectrum
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Thai state-owned operator TOT has reportedly signed a six-month trial contract with AIS subsidiary Advanced Wireless Network (AWN) covering roaming on TOT’s 2100-MHz spectrum.
A TOT source told that AWN has agreed to pay a 325 million baht ($9.4 million) monthly roaming fee for use of 80% of TOT’s 2100-MHz spectrum allocation.
The six-month trial is being conducted with a view to potentially entering into a permanent arrangement. AWS is expected to pay a 3.9 billion baht annual roaming fee under such a deal.
TOT plans to allocate the remaining 20% of its 2100-MHz spectrum to other interested operators, according to the report. AIS already holds 15MHz of spectrum in the 2100-MHz band.
State-owned TOT has been steadily losing 3G subscribers to its 2100-MHz service, and is under pressure to find new revenue streams following Thailand’s transition from a concession model for spectrum allocations to a more conventional auction model.
In June, AWN also agreed to lease TOT’s 900-MHz network and towers for a combined 5.6 billion baht annually.
TOT also holds 60MHz of 2300-MHz spectrum, and plans to use this to offer a wireless broadband service in conjunction with a strategic partner. The partner is due to be selected shortly.
Questions & Answers
Q.What is the purpose of this six-month trial agreement between TOT and AIS?
What is the purpose of this six-month trial agreement between TOT and AIS?
The six-month trial is being conducted to assess the potential for a permanent arrangement between TOT and AIS subsidiary Advanced Wireless Network (AWN). It covers AWN roaming on TOT's 2100-MHz spectrum.
Q.How much will AIS pay for the trial and what would a permanent deal cost annually?
How much will AIS pay for the trial and what would a permanent deal cost annually?
AWN has agreed to pay a 325 million baht monthly roaming fee for the trial period. If a permanent arrangement is entered into, AWN is expected to pay a 3.9 billion baht annual roaming fee to TOT.
Q.Why is TOT under pressure to find new revenue streams from its spectrum allocations?
Why is TOT under pressure to find new revenue streams from its spectrum allocations?
TOT has been steadily losing 3G subscribers and is under pressure due to Thailand's transition from a concession model for spectrum allocations to a more conventional auction model, impacting its revenue sources.
Q.Has AIS previously entered into other agreements with TOT for network access?
Has AIS previously entered into other agreements with TOT for network access?
Yes, in June, AWN also agreed to lease TOT's 900-MHz network and towers for a combined annual fee of 5.6 billion baht. This indicates a broader partnership.
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