TOT Plc plans to kick off the commercial launch of its fourth-generation (4G) wireless broadband service by mid-2016 as it strives to create a new revenue stream and offset vanished concession revenue.
The 4G service will be developed on TOT's existing unused 2300-megahertz spectrum, acting president Monchai Noosong said.
Of several companies the state telecom invited to become partners in the 4G venture, TOT has shortlisted two for the final phase of negotiations to provide mobile service on its cellular infrastructure.
TOT has completed its draft business plan for 4G business.
The state enterprise will submit a request to upgrade the 2300-MHz spectrum for the 4G network to the National Broadcasting and Telecommunications Commission (NBTC) this month for approval.
TOT holds 64 MHz of bandwidth on the 2300-MHz spectrum, which is unused. The frequency is now serving transmission links for telecom services. The state enterprise can use the spectrum until 2025.
"Developing 4G service on the 2300-MHz spectrum would help to boost our wireless business opportunities," Mr Monchai said.
TOT operates 3G service on the 2100-MHz spectrum with 5,320 base stations.
It also owns 13,198 base stations for its 2G network.
Mr Monchai said TOT would roll out the 4G network in areas of high population density with strong demand for 4G data, targeting retail users instead of corporate customers.
Col Settapong Malisuwan, chairman of the NBTC's telecom committee, said the committee expected to endorse TOT's network upgrade plan in order to help the state enterprise increase revenue.
Mr Monchai said TOT learned from its own failures in operating 3G service, which has only 100,000 subscribers despite being the first 3G service provider in Thailand.
TOT is drawing up a budget for the 4G development project.
The state telecom posted a loss of more than 1 billion baht for the first eight months of this year. It needs a private partnership to help revive its mobile business on the 2100-MHz spectrum.