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Thu, January 18, 2007 : Last updated 19:46 pm (Thai local time)



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Home > Business > DTAC sues TOT over access charge dispute





DTAC sues TOT over access charge dispute

Total Access Communication (DTAC) yesterday filed a lawsuit against TOT at the Central Administrative Court over the network access dispute and demanded more than Bt73 million in compensation from the state agency.

DTAC has asked the court to issue an injunction preventing TOT from disconnecting its services. The Bt73-million compensation claim is for damage relating to the dispute, plus an additional Bt15 million per day for lost business opportunities.

DTAC chief executive Sigve Brekke said the court will summon his company - Thailand's second-largest mobile-phone operator - and TOT for an initial hearing today.

The dispute began recently when TOT refused to integrate 1.5 million new phone numbers from DTAC and True Move into its network, citing their refusal to pay its access charges.

A telecom company needs all other operators to integrate - or, in technical terms, "translate" - its new numbers into their switching systems so that the numbers are recognised by other networks.

TOT's refusal to integrate their new numbers means calls from TOT's fixed-line phones will not reach DTAC's new numbers.

DTAC is now offering Bt200 worth of free calls per month in the SIM cards for its additional 1.5 million phone numbers. It hopes to woo buyers who will know they will be unable to pick up calls from TOT's network. The bonus will last until the DTAC-TOT dispute is resolved.

DTAC has labelled the SIM cards of its new numbers so buyers will know they will be unable to pick up calls from TOT's four million fixed-line subscribers. It has begun selling the new numbers that are not integrated into TOT's network, but only for prepaid services at present.

The access charge, at the heart of the dispute, is a cost against the cellular concessionaires of CAT Telecom. It covers the cost of these operators connecting their subscribers' calls to other networks via TOT's facilities. CAT's concessionaires include DTAC and True Move.

DTAC intends to pay the access charge to TOT, but at an interconnection-charge rate of Bt1.25 per minute instead of the original access charge rate of Bt8 a minute.

The interconnection charge, introduced recently by the National Telecommunications Commission, requires all operators to share revenues from voice and data calls between their networks on a fair basis. DTAC and True Move say they want to pay only the interconnection charge, instead of paying both the access and interconnection fees.

Until now, TOT has earned around Bt14 billion per year from the access charges.

Brekke said DTAC is also considering legal action against TOT president Somkual Buraminhentr for allegedly damaging DTAC's business as a result of the dispute.

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