Thai state-owned telco TOT is pressing ahead to obtain Bt73bn (US$2.4bn) in compensation from privately-owned cellco Advanced Info Service (AIS), local media reports wrote.
The telco is calling for Bt36.99bn (about US$1.2bn) from AIS over losses due to…
Thai state-owned telco TOT is pressing ahead to obtain Bt73bn (US$2.4bn) in compensation from privately-owned cellco Advanced Info Service (AIS), local media reports wrote.
The telco is calling for Bt36.99bn (about US$1.2bn) from AIS over losses due to the revenue-sharing reduction of prepaid service, as well as roaming fees. TOT also wants Bt36.83bn (about US$1.2bn) from AIS over compensations that had to be paid to the Excise department due to a change in tax.
The former Thai government changed its tax regime in order to reduce costs for consumers. 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.
However, the chief executive of AIS, Wichian Mektrakarn, was recently quoted saying that the company would not pay compensation as it had done nothing wrong. The Bangkok Post also wrote that some board members of TOT said they felt it was unlikely they would get the compensation.
Two government committees have reportedly been assigned to investigate these concessions, but have been unable, so far, to state definitively whether or not they were illegitimate.
In addition, the Ministry of Information and Communication Technology (ICT) decided, in mid-January, to postpone TOT’s plan to seek damages from AIS, following criticism by experts and industry leaders.
The latter reportedly feared that seeking damages from operators might threaten the stability of the industry and deter foreign investment.
However, AIS has now been told to comply with TOT’s demands by 15 February, or TOT will take legal action, according to the newspaper.
