TOT's executive board yesterday decided to set up a special team to resolve the problem of Bt850 million owed by its cellular operator, Thai Mobile, to Samart for billing and marketing services.

TOT president Somkual Bruminhent said the board would meet next Tuesday to decide on a plan to repay the amount and whether TOT or Thai Mobile should be responsible for the repayment.

The board will also draw up a future business plan for Thai Mobile before setting up a team to act on their decisions.

He said TOT would also have to discuss plans to clear up Thai Mobile's debt with CAT Telecom, which currently has a stake in the company.

TOT is in the process of buying up CAT's shares in Thai Mobile as part of its plan to take over the cellular operator.

Somkual said Samart had already agreed to TOT's request not to discontinue its services pending next Tuesday's board meeting.

"Our policy is always to honour our debt obligations," Somkual said.

Samart had threatened to stop providing billing and marketing services for Thai Mobile from yesterday, because it had not been paid its monthly fees of Bt34 million since 2005.

Thai Mobile's outstanding payments totalled Bt850 million as of last month.

Thai Mobile, which started operations in 2003, has accumulated debt of Bt4 billion and accumulated losses of Bt6 billion.

With 80,000 customers currently, it has monthly revenues of about Bt30 million but must bear operating costs of Bt120 million a month.

The marketing and billing-service contracts Thai Mobile awarded to Samart will end

this year and in 2009, respectively.

TOT plans to have Thai Mobile develop a third-generation (3G) broadband cellular service, given that it is the only cellular operator owning part of the 1900-megahertz spectrum.

The 1900MHz spectrum is the international standard platform for developing 3G services.

TOT has considered spending Bt20 billion to roll out the 3G network but has yet to make a decision.

Usanee Mongkolporn

The Nation