True Internet, a unit of True Corp Plc, will launch its Internet calling service later this week as a low-cost choice for phone users.

True's president, Supachai Chearavanont, said late last week the voice service would be formally launched soon but declined to elaborate, while an executive at the company said the service would be kicked off late this week starting with calling between personal computers.

"Next, the company will offer call service from PC to telephone," the source said.

The service will use Voice over Internet Protocol (VoIP), a technology that allows cheap calls from PC to PC or PC to telephone anywhere in the world via the Internet rather than the telephone network.

The National Telecommunications Commission (NTC) granted True Internet a licence to provide Internet access service, including the VoIP service. But the NTC has yet to allow any Internet licensee to offer phone-to-phone VoIP service.

Among the local VoIP providers is CAT Telecom Plc, an NTC licensee.

Another True subsidiary, Sky Office, plans to spend about Bt300 million within two years once it receives its licence already approved by the NTC to operate both an international Internet gateway (IIG) and a domestic Internet exchange.

Sky Office is capitalised at Bt1 million by True.

Noppadol Dej-Udom, True's main line business director, said the awarding of Sky Office's licence was pending the NTC's further examination of some details.

The Bt300 million will be used by Sky Office to build its own networks and lease others from carriers to provide its services.

IIG serves as a channel for local Internet service providers (ISPs) to connect or exchange traffic with global Internet networks, while the domestic exchange routes traffic among local ISPs.

CAT has been the dominant IIG for years, which means all ISPs are not allowed to directly procure their own international bandwidth capacity but must lease it from CAT.

Sky Office will in the first phase make 3 Gigabits per second of international Internet bandwidth available to ISPs, Noppadol said.

True Internet occupies about 3.2Gbps out of a total of 5Gbps available for all ISPs from CAT.

True Internet has about 400,000 broadband Internet subscribers, representing around 80 per cent of the market, and expects to add 100,000 by year-end.

The NTC has also approved in principle a similar licence for broadband Internet provider Advanced Datanetwork Communication.