Thai state firm TOT plans 3G service by end-2009

BANGKOK Feb 23 (Reuters) - State-owned Thai telephone firm TOT PCL said on Monday it would go ahead with a plan to develop third-generation mobile services on its existing network and expected a commercial launch by the end of this year.

The industry regulator has approved a plan by TOT to develop 3G services on its 1900 MHz spectrum and the investment was expected to be lower than the 29 billion baht ($816 million) earlier planned, Chairman Teravuti Boonyasopon told reporters.

"We will upgrade the existing 500 base stations in Bangkok and surrounding provinces with a budget of no more than 3 million baht for each station," Teravuti said.

Details about how to finance the project would be decided in April, he said.

Thai telecoms operators are competing to deploy new technologies, including 3G, to extract revenue from a nearly saturated sector.

The top three private mobile phone operators are launching 3G services on their existing networks, with market leader Advanced Info Service ADVA.BK the first to launch, with limited coverage, late last year. ($1=35.56 Baht) (Reporting by Manunphattr Dhanananphorn; Writing by Khettiya Jittapong; Editing by Alan Raybould)