ICT Ministry to probe deals between CAT, True Corp

SUNDAY, SEPTEMBER 25, 2011
ICT Ministry to probe deals between CAT, True Corp

The Information and Communications Technology Ministry instructed its permanent secretary late last week to set up a committee to probe the legitimacy of the deals that paved the way for CAT Telecom and True Corp's collaboration on a 3G wireless broadband

A ministry source said ICT Minister Group Captain Anudith Nakornthap ordered permanent secretary Jirawan Boonperm last Wednesday to appoint the committee, which is required to finish its probe within 15 days of its establishment.

The probe will focus on whether the deals comply with related laws and regulations, and whether the deals are subject to the 1992 Public-Private Joint Venture Act. The Office of the Attorney-General informed the ICT Ministry in July that these deals do not need to adhere to the 1992 Public-Private Joint Venture Act and were deemed to comply with the wholesale and resale regulations of the National Telecommunications Commis-sion. The ministry asked the agency to look into the matter following criticism that the deals failed to comply with certain laws and regulations.

CAT signed deals with True subsidiaries Real Move and Real Future in January to set up their collaboration to provide 3G-High Speed Packet Access (HSPA) service on 850MHz spectrum. Under the deals, Real Future subsidiary BFKT (Thailand) has already installed HSPA equipment for CAT, which will wholesale 3G capacity. Real Move has already leased capacity from CAT to resell the service.

The ministry is also examining CAT's request for a budget of Bt12.5 billion to install core telecom facilities to support its supplying 3G-HSPA services under the deals. After it has finished considering the request, the ministry will send its opinion on the matter for consideration by the National Economic and Social Development Board.