CAT Telecom to sell its stake in thai Mobile

The move ends years of battling between the two state agencies over ownership of Thai Mobile and future plans for the cellular operator. TOT is now planning for Thai Mobile to launch a third-generation (3G) mobile broadband service on the 1900-mehahertz spectrum in Bangkok within the next three months.

ICT Minister Mun Patanotai, who met the boards of both TOT and CAT yesterday, said CAT's board had accepted his proposal that the company sell its 42-per-cent stake in Thai Mobile to TOT in a Bt2.4-billion deal.

TOT, which owns 58 per cent of Thai Mobile, is required to pay for CAT's shares completely within five years.

Mun also instructed TOT and CAT to sign a memorandum of understanding on the transaction within a week. He is confident the battle between TOT and CAT to take full control of Thai Mobile is now over.

TOT and CAT have battled for years to take over Thai Mobile by proposing to acquire each other's shares. TOT originally offered to pay Bt2.4 billion for all of CAT's shares, to be paid in annual instalments of Bt200 million. CAT counterproposed the acquisition of TOT's shares for Bt3.3 billion payable over five years, as well as taking over Thai Mobile's Bt6.5-billion debt.

Thai Mobile operates on the 1900MHz spectrum band, an international standard platform for offering 3G mobile broadband services.

The crucial 1900MHz spectrum was awarded joint ownership to TOT and CAT in 2000 by the now-defunct frequency-allocation committee. The two state agencies set up Thai Mobile to provide a mobile-phone service on the spectrum. The National Telecommunications Commission has now informed TOT that joint ownership of the spectrum can be transferred to TOT alone.

TOT chairman Teravuti Boonyasopon said his agency would rename Thai Mobile "TOT Mobile" as part of its plan to become both a 3G-network provider and a service provider.