Telenor pumps funds into Dtac

Telenor has revealed plans to invest an additional 34 billion baht (€794 million) over the next three years to expand its Thai subsidiary Dtac's mobile networks.

Dtac will use the funds to expand its networks on the 850-MHz, 1800-MHz and 2100-MHz bands, with a special focus on building 3G capacity to meet growing demand for mobile data traffic, the Bangkok Post reported citing Telenor CEO Jon Fredrik Baksaas.

The company aims to expand its 3G network nationwide, as it believes providing nationwide data coverage to be an important competitive differentiator.

Dtac expects to have 10 million 3G users this year, and its mobile data traffic has been growing strongly for seven consecutive quarters.

The company has announced a policy of encouraging all its users to connect to the internet by 2015.Dtac is currently trying to work out a deal that would allow it to offer 4G services under a wholesale-retail business model.

But Baksaas said more LTE spectrum and cheaper 4G handsets will need to be available before Thailand can usher in the 4G era in earnest.