Thai AIS plans to invest $1.7 bln on 3G over 3 yrs

BANGKOK, March 2 (Reuters) - Thailand's top mobile phone operator, Advanced Info Service PCL (AIS) ADVA.BK, said on Monday it could invest 60 billion baht ($1.7 billion) over three years to install a third-generation mobile network.

"If we get a 3G licence, we will invest about 20 billion baht a year for three years to have nationwide coverage," Pornrat Janjarassakul, head of corporate planning and investor relations, told reporters.

AIS, partly owned by Singapore Telecommunications Ltd (STEL.SI), generated cash flow of about 30 billion baht a year and had obligations to pay dividends of about 18-19 billion baht a year, Pornrat said.

However, AIS might borrow about 3-5 billion baht a year to boost its cash flow and the company had room to seek debt, given its debt to equity ratio of 0.25 at the end of 2008, he said.

Thai telecom operators are competing to deploy new technologies to extract revenue from a nearly saturated sector.

The regulator, the National Telecommunication Commission, is expected to issue 3G licences on a new 2.1 GHz spectrum by the third quarter of this year, Pornrat said, adding it should take six months to launch 3G services. Last month the company said it planned to spend about 13-15 billion baht this year, which included investment for a 3G service on its existing network.

At 0820 GMT, AIS shares were unchanged at 80.50 baht, while the overall Thai stock market was 3.27 percent lower. ($1=36.20 Baht) (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong; Editing by Alan Raybould)