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True Move makes proposal to CAT

True Move has proposed to CAT Telecom to convert its concession into common shares in a bid to seek a possible strategic alliance with the state enterprise.

Published on January 23, 2008



"I cannot tell right now what CAT's stake in us should be, but it must be significant. CAT will also gain once True Move lists on the SET [Stock Exchange of Thailand]," True Move chief executive Supachai Chearava-nont told The Nation yesterday.

True Move also proposed another option for CAT to transform its concession into a network lease, Supachai said.

CAT president Phisal Jorphochaudom said both sides are thrashing out several proposals but declined to elaborate, saying only that CAT was willing to partner up with True Move.

All private cellular operators want out from their concessions in order to cut costs and operate in a freer environment.

Supachai said collaboration with CAT could also cover the development of new services, including wireless broadband 3G, and also the use of CAT's 1800-megahertz and 800MHz frequencies.

True Move has already asked for permission from the National Telecommunications Commission (NTC) to own CAT's 1800 and 800MHz bands, which are being used by Total Access Communication (DTAC), in order to ease congestion on its own spectrum.

"We didn't ask for them [spectra] for free but we're willing to negotiate to pay for them," Supachai said.

While True Move needs the local strategic partner, CAT is interested to join with its private cellular concession holders as well as those of TOT to create new businesses, in keeping with its ambition to join the league of major regional operator Singapore Telecom.

CAT and DTAC have already conducted a joint test of 3G services on DTAC's existing 850MHz band.

Supachai said True Move also welcomes a possible partnership with TOT under the concept of business convergence. Both parties can take advantage of their telephone business strengths to tap the market and promote new services.

True Move, which has 12 million subscribers, is a subsidiary of True Corp, whose interests range from telephones, mobile phones and pay-TV to broadband Internet. True Corp holds a TOT concession.

"We're also ready to sign the MoU with TOT in the telecom pool project," Supachai said.

On Monday, TOT and its concession holder Advanced Info Service (AIS) signed an MoU on sharing their networks to offer what they call "fixed-mobile convergence services". This will pave the way for AIS to begin talks with TOT on a network upgrade to offer a broadband wireless service.

The MoU is part of TOT's attempt to promote its telecom pool initiative, which will see all operators using national infrastructure for optimal efficiency.

Supachai said now all operators have to struggle to find their own ways to create new businesses, as there is no new licensing movement from the NTC.

Usanee Mongkolporn

The Nation


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