True Move given an extra five years to match dtac

As a result, the third-largest cellular operator will be able to continue using its present network until 2018. True Move's concession, which began in 1996, ends in September 2013.

CAT senior executive vice president Jirayuth Rungsrithong said the leasing contract would take effect after True Move's concession ended. CAT will require True Move to pay a network rental fee equal to 30 per cent of its revenue - the same condition under which Total Access Communication (DTAC) pays its concession fee to CAT.

True Corp - True Move's parent company - informed the Stock Exchange of Thailand yesterday that CAT had agreed to lease telecom equipment to True Move that had earlier been transferred to CAT under the build-transfer-operate system for another five years after the expiry of its existing concession.

True Move will continue to negotiate with CAT on the de-

tails and conditions of the leasing contract. The extension will see True Move's concession term end

at the same time as DTAC's.

A telecom analyst said the network-lease deal would make it easier for True Move to secure new loans. Earlier, its future looked uncertain, because no one knew what would happen once its concession ended.

He said TOT was likely to follow CAT by granting network-lease contracts to its private mobile-phone concessionaires, including Advanced Info Service, when their concession terms ended.

However, a CAT source said the state agency could only extend the term for which True Move could use the network. It could not extend the term of its use of the 1800-megahertz spectrum, because when True Move's concession ended, CAT had to return the spectrum to the National Telecommunications Commission.

In a related matter, CAT's board also granted approval to True Move's operation of a third-generation broadband cellular service using High-Speed Packet Access technology on about five frequency bands of the 800MHz spectrum.

True Move will use CAT's gateway to provide international calling services to its subscribers and says it is willing to allow CAT to use its cellular base stations jointly.

True Move has about 12 million mobile-phone subscribers.