NBTC panel approves amended CAT-True 3G network deal
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The telecom committee of the National Broadcasting and Telecommunications Commission (NBTC) has endorsed the amended network-rental contract between CAT Telecom and True Corp Group regarding their partnership to offer broadband cellular service.
The approval on Wednesday paved the way for CAT to start collecting revenue from providing the third-generation service under the partnership, which was signed in January 2011. The state agency is expected to gain a net profit margin of Bt4 billion from the service this year, and Bt7 billion next year.
Further development
The telecom committee’s approval of the amended contract follows the recent Cabinet go-ahead for CAT to invest Bt14.545 billion on further development of this service and the 850-megahertz network under the True Group partnership.
Under the bandwidth wholesale-resale and network-rental deals signed in 2011, BFKT (Thailand) of True was to rent the 850MHz network for CAT and True to provide 3G service. CAT would wholesale 97 per cent of this 3G bandwidth to another True subsidiary, Real Move, while CAT used the rest to provide its own retail service.
The deals attracted scrutiny by scholars and state authorities over their legitimacy. Last June the NBTC ordered CAT and True to amend some items in the network-rental contracts to make them comply with the Frequency Allocation Law.
Pravit Leesathornvongsa, a member of the telecom committee, said that after the approval of this amended contract, the NBTC’s office should ensure that both CAT and True proceed with their service in compliance with the contract.
