Thai telco True Corp has reportedly asked smaller state-owned rivals CAT Telecom and TOT to sell their network assets to its infrastructure fund.
True hopes the move will end its dispute between its mobile unit True Move and CAT over the ownership of…
Thai telco True Corp has reportedly asked smaller state-owned rivals CAT Telecom and TOT to sell their network assets to its infrastructure fund.
True hopes the move will end its dispute between its mobile unit True Move and CAT over the ownership of 9,000 telecoms towers, The Nation cited a source at the state-controlled operator as saying.
True Move was required under a build-operate-transfer (BOT) project financing agreement to transfer the towers to CAT, the report stated. However, the telco reportedly refused to do so, prompting CAT to seek arbitration.
CAT acting president Sanpachai Huvanandana was quoted as saying the companies are in the process of trying to resolve the dispute.
CAT has leased 4,360 towers from the True Telecommunications Growth Infrastructure Fund (Truegif), in which True Corp is the largest shareholder with a 30.96% stake, to provide 3G services, the report stated.
Meanwhile, True reportedly aims to complete building another 3,000 towers for the fund by the end of the month and a further 3,000 next year, all of which will be rented to other operators.
In late November, it emerged that CAT was set to forge a joint venture to collaborate on local mobile operator Dtac’s network with the latter’s Dtac TriNet (DTN) subsidiary.
Huvanandana was cited at the time as saying DTN was keen to use Dtac’s infrastructure under CAT’s concession to expand its network nationwide.
He reportedly added that CAT planned to rent out the network to other companies too, although mainly to DTN.
Dtac struck Thailand’s first telecoms infrastructure sharing deal in October, when it agreed to lease 100-115 towers from Truegif.
Meanwhile, CAT was recently reported to have set up a joint committee with fellow state-owned telco TOT to coordinate plans to share infrastructure.
Thailand’s telcos are under pressure from falling voice revenues and a decision by the military council currently ruling the country to delay its 4G auction by a year.
True Corp was not immediately available for comment while CAT and TOT could not be reached.
