Loxley group wins CAT bid

Bangkok Post (8 January 2008)

LSI Consortium, comprising Loxley Plc and International Engineering Corp, yesterday won an electronic auction for CAT Telecom's integrated billing and customer service system project with a bid price of 891 million baht. The consortium's price was 36% lower than the official median price set earlier by CAT Telecom.

Air Marshal Priya Siriboon, the CAT board spokesman, said the bid was very satisfactory because it was the lowest ever. CAT earlier expected the project to cost around 1.2 billion baht.
The runner-up was ISA consortium, which offered 978.5 million, or 30.11% less than the median price. Third was STCC consortium at 1,244 million baht.

Three groups of companies entered yesterday's e-auction witnessed by representatives of the Office of the Auditor-General and the Comptroller-General's Department. The low bid did not represent price collusion because it was much lower than the median price, said Air Marshal Priya.

Although the LSI group won the auction, it still needs to negotiate the final price with CAT.
CAT Telecom first called the bids to replace its 10-year-old system in April 2005. Five groups entered but only three met the technical requirements. M-Link Asia Plc, a company associated with a sister of ousted prime minister Thaksin Shinawatra, was among the three that qualified to enter the e-auction.

However, the bid was later scrapped after complaints that specifications had been rigged. CAT Telecom invited vendors to attend a meeting on April 5, and more than 40 showed up to hear the terms of reference. All of them had to sign an acknowledgement of their attendance and the bidding conditions.

But some vendors questioned the technical requirements, which would enable only a handful to bid. Setting high technical specifications eliminated small vendors from contention, they said.

'Leave it all to the new regulator '

The Nation (8 January 2008)

CAT Telecom and Total Access Communication (DTAC) said the national telecom regulator should not exercise regulations covering frequency-rights transfer and frequency sharing at this time when a new regulatory body will be formed.

The comments came after True Move wrote to inform the National Telecommunications Commission (NTC) on December 4 of its intention to replace CAT in using certain bands on the 1800-megahertz and 800MHz spectra for commercial purposes. The bands are part of the frequencies being used by DTAC to offer cellular services under a concession from CAT.

Sources at both CAT and DTAC shared the view that the NTC should not touch the big frequency issue at this moment. But one telecom industrialist said the NTC should go ahead and ensure fair frequency allocation if it could guarantee the maximum national interest.

DTAC chief executive Sigve Brekke yesterday insisted nobody could claim DTAC's frequencies and that DTAC would definitely defend its right to use these frequencies.

But he added that DTAC might be willing to give some frequencies to True Move if at the same time DTAC could get some existing 900MHz frequency bands from Advanced Info Service (AIS).

The Frequency Allocation Act amendment, which mandates the establishment of the National Broadcasting and Telecommunications Commission, is waiting to be handled by the new government.

True Move cited NTC regulations for frequency-licence transfers and frequency sharing to stake claims on CAT's bands. Telecom operators are allowed to seek the NTC's permission to either transfer the rights and duties of a spectrum to other operators or use other operators' spectra in place of the existing users.

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

According to a document attached to True Move's letter and obtained by The Nation, True Move said DTAC, which owns the 11.5MHz bandwidth of 800MHz and 50MHz bandwidth of 1,800 MHz, has too much spectrum bandwidth. Moreover, it says its intention to use the spectrum bands will not affect DTAC, but rather promote fair competition on a level playing field.

"If True Move were allowed to own such bands, we believe this would lead to our huge investment. In 2005 and 2006, the company shared Bt6.740 billion and Bt7.584 billion with CAT, respectively, and CAT paid the amount to the Finance Ministry, which meant, accordingly, that the country gained more income," the letter said.

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 forwarded True Move's letter, which it received from the NTC, to DTAC yesterday.

Besides True Move, AIS informed the NTC on December 25 that it wanted to acquire certain bands on the 800MHz spectrum of CAT, which are being used by DTAC and Hutchison-CAT.