True Move seeks five-year extension to concession deal

The Nation (11 January 2008)

True Move has asked CAT Telecom to extend its concession contract by five years from 2013 to make it easier for the company when dealing with creditors and network suppliers for new investment.

CAT president Phisal Jorpochaudom said True Move had requested that the new term be on a network-leasing basis, instead of the current build-transfer-operate basis.

"It promises that its network-leasing fee will be the same as its current concession fee," he said yesterday.

True Move has shared 25 per cent of its revenue with CAT, its concession owner. If granted, the concession would expire in the same year as that of Total Access Communication (DTAC).

Phisal said True Move needed the concession extension to enable it to deal easily with creditors and network suppliers.

True Move is reportedly having to make a number of moves right now to ensure that, if it cannot get a new frequency licence from the National Telecommunications Commission (NTC), at least it will still have the CAT frequency to continue offering a service after the existing concession expires.

True Move informed the NTC on December 4 that it wanted to replace CAT in using certain bands on the 1800MHz and 800MHz spectra for commercial purposes. The bands are currently being used by DTAC.

True Move has 12 million customers and has mentioned many times that it wants additional frequencies to ease the congestion on its existing 12.5MHz of bandwidth in the 1,800MHz spectrum.

True Move also notified the NTC on December 14 that it wanted to replace CAT in owning bands of the 1800MHz spectrum being used by True Move itself.

CAT chairman Gen Montree Sungkasap said CAT had set up two committees, one to oversee True Move's request for a concession extension and another for the use of some CAT frequency bands. The board will convene on the two cases on January 19.

CAT spokesman Air Vice Marshal Piriya Siriboon said that CAT and DTAC would defend their right to own the targeted frequency bands.

"We'll assign legal staff to examine whether it is legally possible to take over our frequency bands and if there is a legal basis that can protect us," he said.

Advanced Info Service also informed the NTC on December 25 that it wanted to acquire certain bands in the 800MHz spectrum of CAT, which are being used by DTAC and Hutchison-CAT.