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Sat, June 9, 2007 : Last updated 23:42 pm (Thai local time)



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Home > Business > DTAC, True Move to be sued over access fees





DTAC, True Move to be sued over access fees

TOT and CAT Telecom have decided to sue Total Access Communication (DTAC) and True Move over the access-charge dispute with the two companies, TOT acting president Vuthiphong Priebjrivat said yesterday.

The decision comes just days after DTAC announced it was listing on the local stock exchange and would hold an initial public offering (IPO) on June 22.

Vuthiphong explained TOT could not sue the two companies directly. It will file complaints against CAT, which owns the companies' cellular concession rights.

TOT will name the CAT dispute-resolution committee, including representatives of the Prime Minister's Office and the Office of the Attorney-General, in the complaint.

That committee will then recommend CAT bring the action against DTAC and True Move. The action is likely to be filed in the civil court.

DTAC, True Move and Digital Phone paid access charges to TOT every time one of their customers called a subscriber on a different network.

DTAC and True Move ceased paying the charges last November. According to TOT, the total of unpaid charges is now Bt7.5 billion.

Vuthiphong declined to reveal how much the action would seek in damages.

DTAC and True Move adopted the National Telecommunications Commission interconnection charge instead of the access charge. It requires telecom operators to share voice and data revenue between

the two networks involved in a call.

DTAC chief commercial officer Thana Tienachariya said the lawsuit was unlikely to affect the company's share offering. The risk has been outlined in its prospectus.

One telecommunications analyst estimated that DTAC and True Move access charges for the first quarter of the year were Bt2.7 billion and Bt1.1 billion, respectively.

Like Thana, he said the case was unlikely to affect the DTAC IPO, given that prospective investors should have expected the action.

In a separate matter, a TOT committee will seek a new president. Somkual Buraminhentr ends his term on December 20.

The position of president has been temporarily held by Vuthiphong following an investigation into losses at Thai Mobile, the joint venture between TOT and CAT.

Somkual was managing director of ACT Mobile, which operates the Thai Mobile network.

Usanee Mongkolporn

 

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