CAT given month to amend True contracts; CAT-True working on alternative buyback solution

Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has given state-run telco CAT Telecom 30 days to amend its 3G network operating contracts with True Corp, on the basis that the 14-year partnership deal – agreed in January 2011 – violates Section 46 of the Frequency Allocation Act of 2010, which requires licensed operators including CAT to manage their own spectrum. The NBTC yesterday officially confirmed the decision of its sub-committee, which on 6 June found that CAT was illegally allowing private sector operator True to control spectrum management on its behalf, and ruled that the CAT-True wholesale/resale contracts must be amended in seven areas to comply with the law.*Additionally, the NBTC’s telecom committee has ordered an investigation into whether True’s wholly-owned subsidiary BFKT (Thailand), which leases network equipment to CAT under the CAT-True partnership, is effectively operating part of CAT’s business without a licence issued by the NBTC, in violation of Article 7 of the 2001 Telecom Business Act. Officials must report their findings to the panel within 30 days, reports Thai newspaper The Nation.*A report from the Bangkok Post adds that if CAT is unable to comply with the NBTC’s order and amend its contracts, it could ultimately face the revocation of its 800MHz-850MHz operating licence, which in turn would have serious consequences for True’s ‘True Move H’ HSPA-based 3G service, which is offered via a capacity resale deal between True’s Real Move unit and CAT.

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OVETEL CAT given month to amend True contracts; CAT-True working on alternative buyback solution