Oct. 16--True Corporation, the parent company of the mobile operator True Move, has produced a well-prepared alternative funding source for its 3G investment with a strong financial backup from major shareholder CP Group.

"With cash of up to 9 billion baht plus annual cash flow of 7-8 billion baht and a variety of avenues of full funding including recapitalisation and a strategic-partner approach, True Move is financially ready for the 3G battle," said CEO Supachai Chearavanont.

True Move plans to spend 20 billion baht on its 3G network in the first three years with 90 percent population coverage.

"We will fight until the end, until the last breath, to win a 3G licence no matter how high the bid prices will go and with an unlimited budget," said Mr Supachai.

The National Telecommunications Commission (NTC) has proposed a minimum reserve price for a licence for 10 MHz of 3G spectrum at 10 billion baht.

The regulator wants to call bids in mid-December and hopes to award four 3G licences by the end of this year. Three licences would be for 10 MHz each, and one for 15 MHz, which would cost more.

Mr Supachai argued that the reserve price should be at 2.5 billion baht, with all licences allocated on an equal basis for 10 MHz each.

In Singapore and Malaysia, where GDP stand at 60-70 percent and 85 percent of Thai GDP respectively, the governments charged the equivalent of 1.5 billion baht for each 3G licence.

"It cannot be denied that the high costs of 3G licences will unavoidably be passed on to consumers," he said.

True Move, almost wholly owned by True Corp, wants to see a free and fair competition in the Thai telecom industry. "We welcome competition from foreign private companies, but we don't want to see foreign state companies competing with telecom firms," said Mr Supachai.

True Move contends that it is at a disadvantage to No. 1 Advanced Info Service and No. 2 DTAC, and that foreign-controlled companies could end up controlling national assets and risking national security.

AIS is part of Shin Corp, majority owned by Temasek Holdings of Singapore, and DTAC is controlled by Telenor of Norway.

Since telecoms are a capital-intensive industry, Mr Supachai said Thai companies were at a disadvantage to foreign companies, not to mention foreign state companies, for investment and capital.

But he warned other players not to overlook True's potential and fighting spirit. The company knew it would face an ordeal five years ago when it jumped into the mobile industry.

"Now, our financial potential is much stronger than in the past," he said.

True Move is seeking both Thai and foreign strategic partners, limiting shareholding stakes to 25-30 percent to prevent foreigners from controlling the company and the industry, Mr Supachai said. The company is looking for partners with strong 3G experience to help it roll out the network and implement marketing strategies.

But True Move is in no rush to conclude a partnering deal and this could happen after it receives a 3G licence.

TRUE shares closed yesterday on the SET at 3.14 baht, down 34 satang, in trade worth 211 million baht.

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