True Move, the country's third-largest mobile-phone operator, says it will shutdown its second-generation (2G) mobile service if it wins a spectrum at auction in August.
Suphachai Chearavanont, chief executive of True Corporation, the parent firm of True Move, said the company hopes to win an auction of licences for 25 megahertz of bandwidth on the 1800-MHz spectrum in order to strengthen its 3G wireless broadband network and services.
True Move, through subsidiary Real Move Co, operates 3G mobile service on the 850-MHz spectrum under a wholesale-retail agreement with its concession owner CAT Telecom.
Another subsidiary, Real Future, provides 3G services on the 2100-MHz spectrum under a licensing agreement.
Mr Suphachai said if the company wins the auction for the 1800-MHz spectrum, it could help its customers in migrating to its 3G networks.
He said the company would not focus on 4G service for now as the market is not ready for Thailand.
The National Broadcasting and Telecommunications Commission last month approved schedules for a series of license auctions for 4G, set to take place between August 2014 and September 2015.
An auction of licences for 25 megahertz of bandwidth on the 1800-MHz spectrum, previously used by True Move and Digital Phone Co (DPC), will take place in August.
Another auction of 17.5 MHz on the 900-MHz spectrum, which is in use by mobile leader Advanced Info Service, is scheduled for November. And an auction of 50-MHz of bandwidth on the 1800-MHz spectrum, now in use by Total Access Communication, is set for September 2015.
True Move and DPC were allowed to retain their customers for another year after their concessions expired last September, but are not allowed to acquire new subscribers.
True Move still has 10 million customers on the 1800-MHz spectrum, down from 17 million last October. DPC has 40,000 users, down from 70,000.
Mr Suphachai said True needs to migrate all existing 10 million 2G subscribers to its 3G network by August, or before the auction takes place, or the bidding winner can takeover the company's right to oversee the customers instead.
"We cannot afford to miss this auction," he stressed.
Mr Suphachai said True is in talks with several mobile companies in Asia for possible partnerships.
"We want to expand our business abroad, especially in Southeast Asia, this year," he said.
True Move plans to settle a deal this year to seek a strategic partner to take on 25% of its shares in True Move.
True Corporation has teamed up with Airports of Thailand Plc to introduce free WiFi at all six major airports nationwide operated by AOT.
Passengers are allowed to use WiFi internet service at a maximum speed of 10 megabits per second at all six airports.
Under the five-year agreement, Mr Suphachai said True has spent 600 million baht on WiFi networks serving AOT.
True last December provided free WiFi service in Chiang Mai and Don Mueang airports.