CAT pressed on True deal

FRIDAY, JUNE 08, 2012
CAT pressed on True deal

The National Broadcasting and Telecommunications Commission's subcommittee probing the legality of CAT Telecom's partnering with True Corp to provide third-generation wireless broadband service will propose that CAT be urged to comply with Article 46 (2

That article prohibits NBTC licence holders such as state agencies CAT and TOT from allowing other parties to control their spectrum management.
The subcommittee also views that if BFKT (Thailand) does not help CAT comply with the frequency law, BFKT itself might also be found in breach of Article 67 of the Telecom Business Act by operating a telecommunication business without a licence. The penalty for breaching Article 67 is a fine or imprisonment or both.
The subcommittee said CAT had to comply with the frequency law by being able to use its 800-megahertz spectrum with its own network or those of other parties and should have complete control over its spectrum.
The subcommittee wrapped up its probe on Wednesday.
CAT and True’s subsidiaries Real Future and Real Move signed the partnership deals in January last year. Under the arrangement, Real Future’s BFKT has leased 3G equipment to CAT to wholesale 3G bandwidth. CAT in turn has wholesaled 3G bandwidth capacity to Real Move. CAT committed to use its own 800MHz spectrum only with the equipment leased to it by BFKT for 14 and a half years.
The deals attracted scrutiny by several state agencies over their legality.
True Corp’s managing director for mobile business, Adhiruth Thotaveensaksuk, said that as the contractual party, True was willing to make any change requested by CAT and as suggested by the NBTC.