China Telecom and Thai state-owned operator TOT will join forces to build two new international telecom cables running into Thailand.
The companies will deploy landline cables - one linking Thailand with Laos, China and Russia, and the other running from Thailand to Cambodia and Vietnam - Bangkok Postreported.
The new cables are designed to ease the strain of the subsea cable operated by fellow state-owned telco CAT, currently Thailand's main international link.
Shanghai Symphony Telecom, China Telecom's joint venture with US giant AT&T, will also be involved by creating the gateway connection in Laos.
TOT has also partnered with Japan's Softbank, which will provide it with 3G technical expertise and advice in developing a new business plan, the Bangkok Post said.
Thailand's private operators currently provide TOT and CAT with a share of their service revenue under the nation's concession model. But these licenses are soon to expire.
Once the concessions end, operators will have to transfer their networks to TOT or CAT under the build-operate transfer-arrangements. TOT will then concentrate on being a network service provider.