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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Maurice Winn who wrote (26298)	12/19/2002 1:56:13 AM
From: elmatador	Read Replies (1) of 74559

Bangkok [and vicinity] or BAV for short is done and IS-95 traffic already cutover to it. Now we are almost done with East Coast Region. Next year we will do the rest, i.e., the West Coast and Northern areas. Meanwhile more money on the bag for Elmat to take from. Meeting my mate of NT tonight in Soi Cowboy for a few beers :-) CDMA cost doubles from first estimate Komsan Tortermvasana Bids for the CDMA mobile phone expansion project were announced yesterday with all contractors proposing offers more than double the original estimated price of 15 billion baht. Nortel Networks proposed the lowest prices, quoting 32.72 billion baht and 31.13 billion baht for two different construction models. Lucent came second at 35.9 billion baht. Samsung quoted 37 billion and 31.47 billion baht. The Communications Authority of Thailand required contractors to propose two alternative ways of developing a system that would rival the nationwide GSM network. Each would require the construction of 1,000 base stations to accommodate 1.68 million subscribers. The first model requires 600 base stations to be built in the first year, 200 more in the second year and 200 in the third. The second version called for the construction of 600 base stations in the first year and 400 in the second year. Commenting on why the proposed price far exceeded the 15-billion-baht estimate, CAT senior executive vice-president Omsin Chevapluok said the higher price was not a problem, as all items had come with exact price quotes. He said 15 billion baht was not an official median price but just a rough estimate of what the CAT would invest. Projected several years ago, the amount did not reflect the going rate for construction today, he said. A CAT source said the estimate was the price previously offered by a former Tawan Mobile executive to build the CDMA network. That proposal was scrapped after the executive's company was taken over by Hutchison. No exact figure for the cost of the project had ever been set, said the source, though the 30-billion-baht price was within the range of the CAT expectations. The winning bidder is expected to be announced by the end of this month.

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