AIS claims deal favours True
Mobile leader refuses rental contract
Mobile leader Advanced Info Service (AIS) has tentatively decided not to enter into an agreement on mobile network rental with True Move, saying the conditions under the deal are unfair.
Negotiations between the country’s largest mobile operator and the thirdranked company over the 900-megahertz network rental agreement are likely to be scrapped as AIS could not accept the terms of the agreement, said a high-ranking source at the National Broadcasting and Telecommunications Commission (NBTC).
Details of the negotiations centred on two key issues: the network roaming service on the 900MHz spectrum; and customer migration between AIS and True Move’s networks.
The government wants AIS to rent True Move’s 900MHz network to retain some of AIS’s existing 2G customers in exchange for ending a dispute between the two over an extension of AIS’s use of the 900MHz network to provide services to its 2G customers.
AIS and True began discussing the terms and conditions of the agreement in mid-April.
The government initially expected AIS and True Move to sign a memorandum of understanding (MoU) on the deal last month.
The source said AIS’s board disagreed with the conditions of the deal, especially details concerning customer migration that seemed to be in favour of True Move.
“Without the approval of our board or our shareholders, the chief executive of AIS could not enter into an MoU with True Move,” the source said.
An industry source said the planned MoU was originally initiated by NBTC secretary-general Takorn Tantasith, ICT Minister Uttama Savanayana and Deputy Prime Minister Wissanu Krea-ngam.
The MoU was initiated against AIS’s offer for an outright takeover of the 900MHz spectrum licence previously won by JAS Mobile Broadband.
However, the government rejected AIS’s proposal and wanted the NBTC to hold a new auction round for the 900MHz spectrum on May 27. The state explained that the re-auction will ensure fairness to all parties.
On April 12, the government invoked its special powers under Section 44 of the interim charter to order the NBTC to hold a new auction for the 900MHz spectrum licence on May 27.
The new auction set the reserve price at 75.65 billion baht — the winning price of JAS Mobile Broadband in last December’s auction. JAS defaulted on its payment due on March 31.
The state also used Section 44 to postpone the switch-off date of AIS’s 2G cellular service from April 14 to June 30.
But the Section 44 order came with the requirement for AIS and True to sign an MoU to end their dispute before the reauction of the 900MHz spectrum takes place. However, the source said AIS still believed that even without an MoU, the re-auction will take place as scheduled on May 27.
Suphachai Chearavanont, chief executive of True Corporation, the parent firm of True Move, recently said True could not predict when the companies would reach a conclusion on the agreement as there are still different requirements from both parties.
Mr Suphachai said he regarded the extension of the 2G service switch-off deadline for AIS as unfair to True. However, he made a commitment to the government that the company would not prolong its dispute with AIS which could delay the new auction.
True Move is still considering whether it will join the new auction, waiting for a decision from its consulting firm.
Mr Suphachai also declined to comment on whether the failure to sign an MoU would urge True to bid for another 900MHz spectrum licence. True won the second slot of the 900MHz spectrum in an auction in mid-December.