DTAC Files Lawsuit Against CAT Telecom On CAT-True Group Deal

[webfact]

TELECOM

Dtac files lawsuit against CAT Telecom on CAT-True Group deal

By The Nation

Total Access Communication Plc (Dtac) today files a complaint with the Central Administrative Court against CAT Telecom's board of directors and CAT Telecom, to seek judicial review of the legality of the agreements between CAT and True Group on joint investment on CDMA and HSPA services.

Dtac also petitions the court to issue an injunction order requiring CAT to refrain from executing the obligations under these agreements until all relevant authorities have been given an opportunity to review and approve the transaction in accordance with established procedures.

CAT Telecom has entered into several agreements with True Group through its subsidiaries including Real Move and BFKT to jointly invest and provide CDMA and HSPA services - a version of 3G service. The CAT-True Group transaction has come under scrutiny as a number of irregularities and concerns have been raised by the regulator, the acting National Broadcasting and Telecommunications Commission (NBTC), as well as leading academics and audit agencies including Thailand Development Research Institute (TDRI), and the Office of the Auditor General.

"However, no action has been taken by the government to ensure that the transaction complies with law, promotes competition and creates level playing field," Dtac said in a statement.

Jon Eddy Abdullah, chief executive officer of Dtac, said "The Transaction is anti-competitive, unlawful and discriminatory against other operators, including Dtac, and thus threatens to distort the telecommunication industry in general and damage dtac . We are disappointed that the government has chosen not to act more proactively to ensure compliance with, Frequency Act (Section 46), the State-Private Participation Act and competition law requirements."

"We have no choice but to take action to protect all stakeholders in the telecommunication industry, Thai consumers and the country as a whole, not just in our own interests," he added.

"We are urging the government to step up and play an active role to create a transparent, fair and efficient regulatory regime and framework to ensure fair treatment in the industry, as well as supporting a fair competition in the business. Meanwhile, in promoting the health of the turbulent industry, we are ready for an open dialogue with all relevant parties - the acting NBTC, the ICT Ministry, the Ministry of Finance, and CAT Telecom," stated Abdullah.

-- The Nation 2011-04-25

[Tropicalevo]

OMG no!

Have I got this right - True are going to be involved in CAT's CDMA service?

If it follows the UBC service level and content model, we might as well all go home, sit in our houses and forget about a decent reliable internet service.

[Pib]

Thailand is the Hub for lawsuits regarding cell phone/mobile/3G/etc capability. Govt agencies suing other govt agencies, private companies suing govt agencies, govt agencies suing private companies. Bunch of kids fighting in the playground. Yeap, Da Hub.

Edited April 25, 2011 by Pib

[RedNIvar]

I wonder if the Government is in cahoots with True! I just wonder.....

[skippybangkok]

Errrrrrr....... so why didnt they file suit against the original Hutch deal? Guess they were no perceived as a threat?

[MaiChai]

Isn't Abhisits father on the board of True...

[JetsetBkk]

And already he's bribing someone with a bunch of flowers.

[woodyleonhard]

Have I got this right - True are going to be involved in CAT's CDMA service?

CDMA service - from CAT and from Hutch - will be phased out as soon as somebody can break through the political and legal mess. I don't think there's any doubt about it. HSPA (so-called "3G") is vastly superior and costs very little for ISPs to install.

I have an article about it in the current Phuket Gazette, print version. The electronic version isn't out yet.

True's record as an ISP is quite good, if not perfect. Perhaps you prefer TOT or CAT - or AIS or DTAC?

[Tropicalevo]

Have I got this right - True are going to be involved in CAT's CDMA service?

CDMA service - from CAT and from Hutch - will be phased out as soon as somebody can break through the political and legal mess. I don't think there's any doubt about it. HSPA (so-called "3G") is vastly superior and costs very little for ISPs to install.

I have an article about it in the current Phuket Gazette, print version. The electronic version isn't out yet.

True's record as an ISP is quite good, if not perfect. Perhaps you prefer TOT or CAT - or AIS or DTAC?

I use TOT land line as my main internet access for my WIFI, and I have used plug in devices for DTAC, AIS and CAT for back up.

The most reliable of them all is CAT CDMA.

TOT service is good WHEN IT WORKS. Mine is still down since the March floods.

AIS and DTAC are slow and patchy where I live. (Koh Samui)

CAT is reliable and comparable speed wise with TOT (when TOT is working at its best).

I have no experience of using True as an ISP, but as a satellite service provider they are terrible (unless you like watching soccer).

[snorkelador]

I for one would prefer if more companies, especially AIS and DTAC would be given concessions to develop 3G networks, instead of running just a limited number of base stations. As I understand, those concessions are given out, at least partly, by CAT. Now with CAT running a joint venture with True, why would they have any reason to give out unlimited concessions to other companies. Sure, they could sell air time for their 3G network to AIS and DTAC, but as having kind of an monopoly on the only almost land wide 3G network, they can and most likely will ensure high profit margins. Also, to my knowledge they keep very uptight about even the possibility of allowing other service providers to user their network or at least about details. IMO not really a transparent way for a state entity to ensure free markets. More like the opposite.

Have I got this right - True are going to be involved in CAT's CDMA service?

CDMA service - from CAT and from Hutch - will be phased out as soon as somebody can break through the political and legal mess. I don't think there's any doubt about it. HSPA (so-called "3G") is vastly superior and costs very little for ISPs to install.

I have an article about it in the current Phuket Gazette, print version. The electronic version isn't out yet.

True's record as an ISP is quite good, if not perfect. Perhaps you prefer TOT or CAT - or AIS or DTAC?

[skippybangkok]

Maybe smiling less now...... being counter sued as the shareholding is illegal according to the law