True Corp pushes for quick deal with CAT on 2G spectrum lease

Colonel Sanphachai Huvanandana, CAT Telecom’s acting chief executive officer, disclosed that True Corp had asked to lease the 2G network on 1800 MHz spectrum for four years with a total leasing fee of Bt700 million. CAT will hold a discussion on the proposal with True this week.

Sanphachai said that CAT felt the proposed leasing fee was too low and should be between Bt1.6 billion and Bt2 billion.

“In fact, though there are third and fourth generation technologies, we do believe that the voice service for second generation mobile phones is still needed in Thailand for the next few years,” Sanphachai said.

Previously, True Move, a subsidiary of True Corp, received a concession contract from the CAT to operate the 2G network on 1800 MHz. True Move transferred 5,000 base stations to CAT after the concession expired in 2013.

In a bid to avoid an impact on people still using the 2G service on 1800 MHz, the National Broadcasting and Telecommunications Commission approved a remedy period that allowed two operators, True Move and Digital Phone Co, to temporarily extend their services until the cut-off date after midnight last Wednesday.

But the NBTC found that True Move violated the order to end the 2G service.

On Wednesday, the NBTC’s telecom committee will consider the penalty for the violation.

 

2G service a must

Sanphachai said that True Corp proposed to lease the network from the CAT after its subsidiary, True Move H Universal (TUC), won a recent 4G-1800MHz licence auction.

Due to a lot of people being linked to second-generation mobile phone network, it is essential for the company to continue to provide the service.

True earlier requested that the NBTC cut off the 2G-1800 MHz service when TUC receives the 4G-1800 MHz licence. TUC has already paid the first instalment of almost Bt20 billion or 50 per cent of total upfront fee of almost Bt40 billion that was due last Wednesday. However, it still holds the two bank guarantees without a certain date for delivery.

Last Friday, TUC said that it would deliver two bank guarantees on Wednesday and needed to receive the 4G 1800 MHz spectrum licence on 11am on Friday as this was considered an auspicious time. The move came after the company was forced by the NBTC to get the licence. 

The NBTC will hold a meeting on Wednesday to discuss the matter.

After TUC receives the licence, it will affect to True Move’s 2G-1800 MHz customers. 

Sanphachai said it was estimated that there were more than one million customers of True Corp who were roaming using the 2G-1800 MHz network. True Move reported to the NBTC that there were about 43,000 customers using the 2G service.

Meanwhile, the leasing fee paid for CAT’s 2G-1800MHz |network during the remedy |period is in dispute. CAT has urged NBTC to ask True Move to pay Bt17.5 billion of the leasing fees, but NBTC telecom committee concluded that CAT should get only Bt742,000 in transmission-network leasing fees during the first stage of the remedy |period.

Sanphachai said that CAT had submitted a notification to the NBTC but the telecom did not accept the committee’s resolution.