Singtel Execs 'Lobby' Govt To Save AIS Concession From Possible Termination

[webfact]

Singtel execs 'lobby' govt to save AIS concession from possible termination

By USANEE MONGKOLPORN

THE NATION

The Singaporean major shareholder of Advanced Info Service has reportedly stepped up efforts to lobby the Thai government to help resolve AIS's concession issues, including the possible risk of contract termination.

Singapore Telecom executives met with Information and Communi-cations Technology Minister Chuti Krairiksh on January 11 and with Finance Minister Korn Chatikavanij last Friday. Their meetings were seen as attempts to solve AIS's concession issues.

Chuti acknowledged that SingTel executives had met with him, but said it was just to wish him a Happy New Year and there was no discussion of the AIS case.

Chuti told them he had treated all concessions fairly and that he had to proceed with the AIS case according to the law.

SingTel, majority-owned by Temasek Holdings, the Singapore government's investment arm, owns 21 per cent in AIS. Temasek also controls AIS's parent, Shin Corp.

SingTel executives reportedly have also sought a meeting with Prime Minister Abhisit Vejjajiva, which is likely to take place between January 26 and 28.

An ICT Ministry source said Chuti had set up a team to study the possible effects in the event of TOT having to terminate AIS's concession. The team will also study how TOT can take care of AIS customers if the concession has to be terminated.

The TOT board will today also consider ways to frame a legal case against AIS and demand compensation from the telecom company after last February's Supreme Court ruling to confiscate the assets of former prime minister Thaksin Shinawatra. The judges also ruled by a majority that he had abused his authority on several counts to benefit his family-owned Shin and its subsidiaries, resulting in massive damage to the state concession holders.

TOT, which granted the concession to AIS in 1990, has amended the AIS concession seven times, from extending its term to reducing the amount of prepaid revenue AIS had to share with TOT. It is estimated that TOT suffered a loss of Bt75 billion from the AIS concession amendments.

The most significant amendment was in 2001 when TOT changed AIS's revenue-sharing for prepaid phone service to a flat rate of 20 per cent per month for the remaining concession term.

Originally, AIS had to share prepaid revenue with TOT at an incremental rate - 15 per cent from 1991 to 1995, 20 per cent from 1996 to 2000, 25 per cent from 2001 to 2005 and 30 per cent from 2006 to 2015.

AIS has stated many times that it will seek legal redress if its business is affected by any government move in the case.

Chuti will also propose for the Cabinet's consideration this month the suggestions of the private-state panel examining the AIS concession amendments.

The suggestions include AIS reverting to its original concession terms, including paying the original rate of 30 per cent of its prepaid call revenue to TOT.

The same panel also suggested that AIS pay a total concession fee of 35 per cent to TOT from this year until the end of the concession in 2015, given that the fourth concession amendment in 1996 extended the its term from 20 years to 25.

The Council of State ruled in 2007 that some concession amendments of private telecom operators AIS, Total Access Communication and TrueMove did not comply with the 1992 Public-Private Joint Venture act.

-- The Nation 2011-01-20

[nikster]

The word banana republic comes to mind...

Chuti told them he had treated all concessions fairly and that he had to proceed with the AIS case according to the law.

The truly bizarre thing about these "laws" is that neither the government, nor anyone else seems to have the power to change them. The prime minister is powerless over the telecoms laws.

Edited January 20, 2011 by nikster

[Thai at Heart]

I wonder which law firm Singtel/Temasak/AIS engage these days to give advice on this sort of thing.

Maybe they should just resort to brown envelopes to make the problem go away.

[nikster]

I wonder which law firm Singtel/Temasak/AIS engage these days to give advice on this sort of thing.

Maybe they should just resort to brown envelopes to make the problem go away.

^ Pretty much the same thing in Thailand...

[hoaker]

Singtel will probably save the concession by way of pumping equity into increasing the wealth of Korn and Chuti. Shin Corp has evaded tax simply by stating that the fees for the concession is tax payable leaving the increase in revenue to expand his margins as his tax payable is fixed.

[ramrod711]

Singtel will probably save the concession by way of pumping equity into increasing the wealth of Korn and Chuti. Shin Corp has evaded tax simply by stating that the fees for the concession is tax payable leaving the increase in revenue to expand his margins as his tax payable is fixed.

i don't understand how you can be so skeptical. surely you can't disbelieve Chuti when he tells us that the meeting was just to wish him a happy new year. i'm sure that if he was to lose his position, singtel would dispatch an executive to meet him in person to pass on the corporate good will, of course i also believe in the easter bunny.

[webfact]

Thai finance minister denies SingTel lobbies him on AIS concession issues

BANGKOK, Jan 21 – Finance Minister Korn Chatikavanij on Thursday denied a report that top Singapore Telecom (SingTel) executives lobbied him to help resolve Advanced Info Service (AIS) concession issues.

The executives from SingTel, which owns 21 per cent of AIS, met with Information and Communications Technology Minister Chuti Krairiksh on Jan 11 and with the finance minister last Friday.

Their meetings were seen as attempts to address the problem SingTel has with TOT Plc on an amendment to the mobile phone concession.

Mr Korn conceded he did meet with SingTel executives, but there was no 'lobbying' on the case. It was a normal discussion on concession issues. He said the ICT minister would be a suitable person who could clarify the matter.

“The government will deal with the issue impartially and strictly abide by the law for the maximum benefit of the public and the telecom industry.

“As for when or whether the SingTel executives will pay a courtesy call on Prime Minister Abhisit Vejjajiva, it is the duty of the ICT Ministry to clarify,” he said.

SingTel executives reportedly have sought a meeting with the Thai premier, which is likely to take place between Jan 26 and 28.

An ICT Ministry source said Mr Chuti had set up a team to study the possible effects in the event of TOT terminating the AIS concession. The team will also study how TOT can service AIS customers if the concession is terminated. (MCOT online news)

-- TNA 2011-01-21

[Thai at Heart]

Either way, the meetings are out in the open now, so the outcome had better be seen to be in compliance with the law, or some pretty important people will be in some very hot water.

Ain't transparency a wonderful thing.

[Dah fahrang]

Thai finance minister denies SingTel lobbies him on AIS concession issues

BANGKOK, Jan 21 – Finance Minister Korn Chatikavanij on Thursday denied a report that top Singapore Telecom (SingTel) executives lobbied him to help resolve Advanced Info Service (AIS) concession issues.

An ICT Ministry source said Mr Chuti had set up a team to study the possible effects in the event of TOT terminating the AIS concession. The team will also study how TOT can service AIS customers if the concession is terminated. (MCOT online news)

-- TNA 2011-01-21

Well that's gonna be easy.

Just wait for ToT take over 'servicing' those AIS customers.

Wait for the stampede of switching accounts to DTAC or True.

Plan ahead on how to service their customers, too, in the probable event their concessions are disliked, too.

Aaaah; isn't it reassuring that the self preservation of Thai state monopolies is in the 'customer's' best interests.