Telenor’s Thai unit to roll out 20,000 base stations, rent 60% of capacity for €118m per year.

Telenor’s Thai arm Dtac plans to launch TD-LTE services running on 2.3-GHz spectrum rented from TOT, after the state-run telco selected Dtac as its preferred network partner.

Under the deal, Dtac has agreed to deploy 20,000 base stations and rent up to 60% of TOT’s 60 MHz of 2.3-GHz spectrum for 4.51 billion baht (€118.1 million) per year. TOT will also be able to rent equipment from Dtac.

"Thailand is an important market for us, with its high and growing demand for mobile data services. The partnership provides clarity on our spectrum position in Thailand," said Telenor CEO Sigve Brekke, in a statement on Wednesday.

Dtac had 24.3 million active subscribers at the end of March. It generated revenues of THB19.75 billion in the first quarter.

Having been selected by TOT for the TD-LTE network, the two companies will now enter a contracting process with a view to signing a final agreement during the fourth quarter.

"This development comes at a critical juncture in supporting the government’s Thailand 4.0 policy, generating economic growth through private sector investment with further positive effects of employability and increased population coverage," said Montchai Noosong, president of TOT.