ICT minister warns True over 3G deals

While the ministry could not prohibit True from expanding the business, he said, the firm should be cautioned that it did so at its own risk under the deals, whose legality is the subject of ongoing scrutiny by authorities.
He added that CAT had been forced to suspend related activities and investments, pending full scrutiny of the CAT-True deals on provision of third-generation cellular service. He hoped the state agency could find solutions to the problems by July.
CAT signed deals with True subsidiaries Real Move and Real Future last January to collaborate on providing the 3G service on 850 megahertz.
 CAT has leased network equipment from Real Future’s BFKT (Thailand) to generate 3G bandwidth for wholesale and for its own resale. BFKT has already procured about 5,500 base stations for CAT to wholesale 3G capacity.
CAT wholesales the capacity to Real Move to provide 3G service. The state agency has also provided the service on a resale basis under its own My brand.
The deals attracted probes by authorities over their legality.
CAT had asked for approval from the National Economic and Social Development Board to invest Bt12 billion to expand its 3G service capacity under the deals and to conduct marketing activities and operations under its own My brand. But the NESDB recommended that CAT seek Cabinet approval first. This prompted CAT’s labour union to urge CAT’s board to approve a budget to support the My service.
The ICT Ministry panel tasked with probing the deals recently found irregularities in the ways they were made.
Later, a National Anti-Corruption Commission subcommittee concluded that some state officials involved in the deals had breached the law.
A subcommittee of the National Broadcasting and Telecommunications Commission that is also probing the deals will conclude next week whether the deals breach Article 46 (2) of the 2010 Frequency Allocation Law. The article bans licence holders from allowing other parties to manage spectra on their behalf.