TrueMove And CAT In Talks On Buying Back Network

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TrueMove and CAT in talks on buying back network

By USANEE MONGKOLPORN

THE NATION

CAT Telecom is in talks with TrueMove on the latter's plan to buy back its cellular network, which TrueMove has reportedly proposed to buy for about Bt10 billion.

CAT chief executive officer Jirayuth Rungsrithong said a CAT panel is in talks with TrueMove on the matter.

The talks are in line with the recent approval in principle by CAT's board for the state agency to hold talks with its three private cellular concession holders on possible sale of their networks back to them before their concession terms end.

It is also in line with the policy of the Information and Communications Technology Ministry that CAT and TOT prepare for the approaching expiry of their cellular concessions.

TrueMove approached CAT for talks shortly after the CAT board approved the stage agency to hold talks with the concession holders. TrueMove had reportedly proposed to CAT a few months before it started talking to CAT that it wanted to buy back the network for about Bt10 billion.

CAT chairman Amnuay Premanawong said late last week that selling their networks back to them seemed to be the best way when their concession terms expire. CAT should not keep their networks because it does not have enough expertise to properly manage the networks when compared to the cellular operators.

He added that the plan to sell their networks to them still needed a final approval from the ICT Ministry.

CAT had submitted such a plan for the ICT Ministry's consideration. ICT Minister Chuti Krairiksk later told CAT to present to him more details on how the plan would benefit CAT.

The networks of all private cellular concession holders belong to TOT or CAT under the Build-Transfer-Operate (BTO) basis.

CAT owns the concession of TrueMove, Digital Phone Co (DPC), and Total Access Communication (DTAC). The concession terms of TrueMove and DPC will end in 2013, while that of DTAC will end in 2018.

The government has yet to make it clear what to do with cellular subscribers once the cellular concessions expire.

Once the cellular concessions end, the private cellular operators' spectra are expected to be transferred to the upcoming National Broadcasting and Telecommunications Commission (NBTC) for reallocation. The cellular operators are expected to bid to secure back their spectra from the NBTC to continue to provide the service to their existing customers.

The concession of Advanced Info Service (AIS), granted by TOT, will end in 2015.

In a separate matter, Jirayuth said that CAT and TOT have temporarily suspended the plan to allow their subscribers to roam on the existing and upcoming 3G networks of each other, pending the policy of the new government.

Earlier, CAT disclosed its plan to sign the MoU with TOT. The MoU would also cover the co-location of the new 3G network rollout.

TOT, which will roll out the new 3G network nationwide, reportedly has yet to start the rollout, pending the complete checking of imported network equipment.

-- The Nation 2011-08-01

[lomatopo]

While this will provide hours of amusement as it plays out, this statement caught my attention, and we should look for further clarification:

In a separate matter, Jirayuth said that CAT and TOT have temporarily suspended the plan to allow their subscribers to roam on the existing and upcoming 3G networks of each other, pending the policy of the new government.

There were plans to allow/enable roaming but this may have given non-AIS providers too much clout, and the inter-provider wholesale prices proposed were quite expensive.

On the concession front it's easy to imagine that the new NTBC, when elected by the new parliament, will extend all of the existing concessions but this may be too optimistic on my part.