Cellcos TrueMove and DTAC have rejected a compensation agreement with state-owned CAT over a concession dispute that dates back to 2007, according to local newspaper The Nation.
A Thai government committee had been organising the talks but sources close…
Cellcos TrueMove and DTAC have rejected a compensation agreement with state-owned CAT over a concession dispute that dates back to 2007, according to local newspaper The Nation.
A Thai government committee had been organising the talks but sources close to the matter were quoted saying that True and DTAC declined to pay Bt8.2bn (US$271m) and Bt22.4bn (US$740m) respectively.
Since late last year, both CAT and the other state-owned telco TOT have been searching for compensation from several local cellcos because of their alleged failure to pay the agreed price for a mobile concession.
In 2003, the cabinet of former Prime Minister Thaksin Shinawatra made changes to the concession regime in order to reduce costs for consumers. But some allege the move was designed to benefit cellco AIS, which was founded by Thaksin. In 2006, the cellco was sold to Temasek, the Singaporean SWF. That same year, Thaksin was found guilty of corruption and fled the country.
An investigation launched at the end of last year prompted TOT and CAT to seek damages from cellcos. Both companies were also recently reported to be considering legal action against the 2003 cabinet, estimating that they had suffered some Bt100bn (US$3.2bn) in damages.
In an interview with TelecomFinance last month, a banker said: “It would seem highly unlikely that AIS or DTAC are ultimately required to pay the full headline amounts being requested by TOT [and CAT], since a part of the AIS compensation and all of that being sought from DTAC are by any stretch of the imagination blatantly unreasonable. In addition this would have negative ramifications for Thailand’s relationship with Singapore and Norway given their respective interests in AIS (through Temasek) and DTAC (through Telenor).”
According to The Nation, the government committee plans to hold talks with True and DTAC again shortly.
In a separate report, The Nation wrote that CAT is hoping to get Bt100m (US$3.3m) per year from its investment in foreign sovereign bonds.
The company’s board recently approved the purchase of Bt100m to Bt300m (US$10m) worth of foreign government bonds in order to generate new revenue streams, CAT’s CFO Jesadavat Priebjrivat was quoted saying.
