State-owned CAT Telecom is refusing to enable DTAC’s 3G commercial rollout unless the company agrees not to seek compensation amid the concession amendment dispute.
In February, it was reported that, after three years, CAT had finally allowed the number…
State-owned CAT Telecom is refusing to enable DTAC’s 3G commercial rollout unless the company agrees not to seek compensation amid the concession amendment dispute.
In February, it was reported that, after three years, CAT had finally allowed the number two mobile operator DTAC to offer commercial 3G wireless broadband services. This followed a decision in December 2010 by CAT to allow DTAC to upgrade its 850MHz spectrum to HSPA for 1,200 base stations to provide non-commercial 3G services. Newspapers reported that the decision has been seen as an attempt to defuse criticism of CAT for its agreement with True Move to market 3G services.
But for several months now, CAT and DTAC have also been entangled in a concession dispute dating back to 2007. Since late last year, both CAT and the other state-owned telco TOT have been seeking compensation from several local cellcos because of their alleged failure to pay the agreed price for mobile concessions.
In 2003, the former government changed its concession regime in order to reduce costs for consumers and allegedly to benefit some cellcos.
But in 2007, the Council of State reportedly ruled that those changes failed to comply with regulations, as they had not been approved by coordinating committees and the Cabinet.
Recently, both TrueMove and DTAC rejected a compensation agreement with CAT.
A government committee had been organising the talks but sources close to the matter were quoted saying that True and DTAC had declined to pay a respective Bt8.2bn (US$271m) and Bt22.4bn (US$740m). The government committee plans to hold talks with True and DTAC again shortly, according to local reports.
If the companies fail to reach an agreement, some mobile operators might see their concessions withdrawn. Hence CAT’s attempt to prevent DTAC from seeking compensation in case the latter loses its concession.
