More Doubts On CAT-True 3G Deals

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3G SERVICE

More doubts on CAT-True deals

USANEE MONGKOLPORN

THE NATION

BANGKOK: -- In another move by the Information and Communications Technology Ministry on the controversial agreement between CAT Telecom and True group on a 3G service, it yesterday submitted to the Department of Special Investigation (DSI) what might be new evidence supporting its recent finding of irregularities in the deals.

Yesterday it announced that it had obtained a copy of a contract signed between CAT and Hong Kong's Hutchison Telecom for the former to purchase Hutch's cellular network assets in Thailand in a deal worth Bt7 billion. This raises the question why the agreement was not proceeded with, and whether there was political interference.

The contract was signed six months before the Cabinet of the previous government in 2010 approved CAT's withdrawal from its plan to purchase the Hutch network. Late that year, True Group stepped in to take over the network instead, leading to the present collaboration between CAT and True on third-generation cellular service.

ICT Minister Anudith Nakornthap said the copy of the CAT-Hutch contract was sent to the ministry by a person who requested anonymity. This person was a former CAT executive who signed the contract, he said.

There is a report that former CAT chief executive officer Jirayuth Rung-srithong met with Anudith last week. Jirayuth, who could not be reached for comment yesterday, is one of the former CAT executives involved in the 3G deals and is being questioned by the National Anti-Corruption Com-mission on whether the agreement affected state interests.

Anudith said the document raised a lot of questions.

"It is possible to believe that there was a political plan to pave the way for a private company to benefit from the failure to proceed with the contract."

He questioned whether the failure to go ahead with the contract was in line with the conclusion of the ICT Ministry's committee studying the legality of the CAT-True deals that there were five irregularities in the agreement. One was that there was a political plan to prevent CAT taking over Hutch's network, which paved the way for True to step in.

At the time, CAT planned to take over the Hutch network in a deal worth Bt7 billion, but the then-ICT minister, Chuti Krairiksh, ordered the state agency to bargain for a lower price. Later CAT gave up its intention to buy the network, and the Cabinet in 2010 approved its withdrawal from the purchase. Then True stepped in.

Pol Colonel Pravesana Mulpra-mook, the DSI's deputy director-general, said the probe would see progress within a month.

-- The Nation 2012-05-04

[lomatopo]

Also note that the NACC announced/ruled on April 24, 2012 that the CAT/True deal violated at least five (5) laws.

[Gary A]

The entire deal was tainted from the beginning. There was no logical reason for thailand to be divided into the north, central and south. There was no cooperation and CDMA from Hutchinson could not be used in the south or north nor could CAT CDMA be used in the central area including Bangkok. Had CAT bought Hutchinson they would have had coverage for the entire country. As it is 3G is very fragmented with few rural areas having coverage and 4G is just a wet dream.

[lomatopo]

The entire deal was tainted from the beginning. There was no logical reason for thailand to be divided into the north, central and south. There was no cooperation and CDMA from Hutchinson could not be used in the south or north nor could CAT CDMA be used in the central area including Bangkok. Had CAT bought Hutchinson they would have had coverage for the entire country. As it is 3G is very fragmented with few rural areas having coverage and 4G is just a wet dream.

I believe your view of this situation, both in the micro and macro views is a bit out of whack?

While these deal(s) were suspect from the get-go to anyone with a passing familiarity with the landscape, players and concessionaires and holders, there were hardly unique in the general scheme of business/powerful families/politics here in Thailand, or for most of the rest of the world.

The net result: a huge jump start. as a result of almost an unfettered land-rush, in cost-effective mobile broadband availability from CAT/TrueMove H, TOT, AIS and even DTAC which was well worth the corners cut, in my opinion. The actual overhead attributable to graft/corruption probably ended up being a fraction of what it might have been under normal (~ 15%) circumstances? It happened so fast the players couldn't even get to the public trough.

We have nearly ubiquitous, inexpensive, standardized (not some idiotic CDMA scheme) mobile broadband coverage. It's even better than a wet dream.

[Gary A]

It is entirely possible that if CAT had bought Hutch that the service would have deteriorated because of too much traffic. (TOO many customers) Being able to plug in the modem anywhere in Thailand and getting a relatively fast connection would have been great.

The "idiotic CDMA scheme" is the only option I have living out here in the boonies. It is now the best it has ever been. The fastest connection in Thailand isn't worth spit if there is no signal.

[PoodMaiDai]

Even North Korea has 3G. Just sayin.

[fayou]

laos has 4G. wow so easy..

[wana]

laos has 4G. wow so easy..

the entire country?very doubtful or maybe a single mast or two installed somewhere in their capital or businest cities ?

much of the west has not got full 4G yet ,its still under development ,as far as i know ,does the USA even have full 4g coverage yet ?

[lomatopo]

http://www.nationmultimedia.com/business/True-Corporation-30181164.html

True Corporation

CIMB Securities (Thailand)

May 2, 2012 5:43 pm

Partnership with CAT turns sour NEUTRAL - Maintained Share Price: Bt3.68 Target price: Bt3.50 Telco - Integrated

True Corporation Plc (TRUE)

True’s earnings turnaround largely hinges on its new mobile operation under the JV with CAT whose new CEO was recently reported as saying that the partnership could soon break apart. On top of that, the many legal investigations by state authorities are negative overhangs. We remain Neutral on True with an unchanged earnings forecast and DCF-based target price. Although we are concerned about the rising risk of the turnaround being jeopardised by its partnership with CAT turning sour, any revision will only come after our meeting with True's CFO on 4 May.