TOT Plc is struggling to avoid possible losses following the introduction of interconnection charge regulations this week by the telecom regulator.

A source at TOT said yesterday the executive committee would meet today to discuss the impact of the regulations, which require all telecom operators to share voice revenue for calls between networks.

The source added that some TOT executives maintained the regulations were against the Constitution, which they claim protects all contracts entered into before the new contracts took effect, until they expire.

He said TOT was unlikely to meet the timeframe of the National Telecommunications Commission (NTC) for TOT and CAT Telecom Plc to jointly complete the details of regulation implementation and interconnection fee rates within 15 days. "We might have to ask for an extension period from the NTC."

Total Access Communication (DTAC) and True Move have planned to stop paying their access charge to TOT and pay only interconnection fees after the regulations take effect.

All of CAT's private cellular concessionaires - DTAC, True Move, and Digital Phone Co - have paid an access charge to TOT for connecting different networks via TOT's network.

According to a Phatra Securities estimate, the access charge TOT received from DTAC and True Move made up 11 per cent of its 2005 revenue of Bt60.2 billion.

"Therefore the termination of the access charge will seriously dampen the TOT's profitability and could spark public criticism as the TOT is 100 per cent owned by the government. The outcry could prompt the NTC to delay implementation of the interconnection regime," the brokerage said.

The NTC has insisted it will not intervene in the access-charge issue, as it is a matter between TOT and the CAT concessionaires.

After the NTC approves the interconnection details and rates for TOT and CAT, the private telecom operators will be called in to consider the interconnection rates. If they agree, the rates should be implemented by late this year.

In a related matter, Wichian Mektrakarn, executive vice president of Advanced Info Service Plc (AIS), said all cellular operators had yet to agree on the payment method: whether they will pay the interconnection rates directly to each other, or via a clearing house.

The AIS board approved the company's budget of Bt50 million for investment on settlement of the interconnection fee, but AIS has yet to decide if it will develop its own system or pay a clearing house for the settlement service.

Samart Corp has set up a clearing house with a fund of Bt50 million to provide the service to telecom operators.

Telecom Reporters

The Nation