Telecom operators given ultimatum

The Information and Communications Technology (ICT) Ministry is threatening to punish telecom operators who are concessionaires of CAT Telecom if they fail to transfer ownership of their cellular base stations to the state agency before next March.
Permanent secretary Kraisorn Pornsutee yesterday said Total Access Communication (DTAC), True Move and Digital Phone (DPC) had each transferred only 40 per cent of their cellular base stations to CAT under their build-transfer-operate (BTO) contracts. He said he had asked CAT to urge all of them to complete the transfers before the deadline or they will risk having their concessions revoked. All private telecom concessionaires have to transfer the ownership rights of their main telecom equipment to their state concession owners in order to operate it. ICT Minister Sitthichai Pookaiyaudom yesterday said he approved of Kraisorn's move. However, an industry source said the delay in transferring ownership rights to CAT Telecom arises from a condition in the concession contracts. CAT's contracts forbid the transfer of these assets to the state agency if they are still indebted, and telecom operators usually procure and install their equipment on a pay-by-instalment plan. The source claimed that CAT's private cellular operators informed the minister about the problem last week. TOT's concession contracts do not contain the same clause relating to the transfer of indebted assets. DTAC currently has 6,694 cellular base stations and 3,137 of them have been transferred to CAT's ownership, while True Move has 4,582, of which 494 have been transferred to CAT. DPC has 2,196 base stations and 946 of them have been handed over to CAT. Kraisorn is soon expected to finish investigating the private concessions of TOT and the outcome is expected to known this week. Sitthichai has ordered CAT Telecom and TOT to examine all telecom concession contracts as part of a campaign to create fair competition in the industry.
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