However, the new 3G commitment by the two state telecom enterprises TOT Plc and CAT Telecom, along with a 2G network upgrade by Advanced Info Service, will help the world's second-largest wireless infrastructure provider return to positive growth this year after a two-year decline.
Krittika Mahattanakul, head of the Asia North subregion for Asia-Pacific at Nokia Siemens Networks (Thailand), said delays in 3G network spending were expected to cause a sharp decrease in overall network spending growth to 30 billion baht this year.
However, Nokia Siemens Networks expects revenue growth of 25% this year to 6.25 billion baht, driven by its winning bid for TOT's 15.99-billion-baht 3G project under the SL consortium.
Nokia Siemens has a contract to install a core 3G network and 2,143 base stations over a six-month period.
The company is not required to seek approval from the acting National Broadcasting and Telecommunications Commission to import the equipment, as TOT already received approval early this year.
Mr Krittika said Thailand was one of only a few countries in the region still without 3G.
"Once 3G is available, we believe mobile broadband growth will grow substantially thanks to fast-growing demand for smartphones and tablets," he said.
3G is expected to gain a 10-15% share of the Thai mobile market within the next two years, although 2G service will still exist for perhaps another decade.
Mr Krittika also said the company is conducting a feasibility study into establishing a research and development (R&D) centre in Thailand to take full advantage of emerging mobile broadband potential.
The facility would be designed specially for long-term evolution (LTE) technology, he added.
Nokia Siemens recently built an R&D centre in the Philippines for LTE innovation.
