China Mobile has cleared Thailand's True Move to bid aggressively for spectrum in the upcoming 4G auctions.
The Bangkok Post reports that subsidiary China Mobile International, which owns an 18% stake in True Move parent True Corp, has given its full support for the Thai mobile operator's bid.
The two operators are evaluating a plan to bid for licenses in both the 1800-MHz and 900-MHz bands during the auctions, which are scheduled for November.
True Corp CEO Suphachai Chearavanont told the paper that the company wants to maintain its leading position in the 4G market in the long term.
But he said he expects fierce competition triggered by the influx of new participants following the auction. This may require the company to invest heavily to maintain its lead.
Suphachai has not specified how much money the companies are willing to bid during the auction, but asserted that True Move's existing budget is sufficient to handle acquiring two 4G licenses.
By the end of the year, True Move aims to have 4 million 4G subscribers for a nearly 90% share of the local 4G market. True Move's existing 2100-MHz 4G service was launched in May 2013.
China Mobile reached the deal to buy an 18% stake in True Corp for 5.5 billion yuan in June 2014.