TOT, AIS seek to end dispute

Issues to be settled in ‘next few months’

TOT is making a fresh start to negotiations with its largest concessionaire, Advanced Info Service (AIS), this month to end bitter disputes over mobile network transfers.

The move is part of efforts to pave the way for a strategic partnership as required by the superboard.

The State Enterprises Policy Commission’s recent resolution requires the state telecom enterprises, TOT Plc and CAT Telecom, to settle all disputes before seeking private partnerships, said Djitt Laowattana, a director of the TOT’s board.

AIS operates 2G mobile service under a concession with TOT, which is due to expire this September.

The company is still locked in eight arbitration cases with TOT worth tens of billions of baht, including the network asset transfer under a build-transfer-operate concession.

AIS transferred most of its 15,000 2G base stations to TOT three years ago. But the company in 2013 called for arbitration, asking TOT to return the transferred network assets, pointing out that its concession had not yet expired.

“We expect to end all disputes with AIS within the next few months,” said Mr Djitt.

He also said TOT is interested in entering a network-sharing agreement with AIS, similar to the deal between CAT Telecom and second-ranked operator DTAC, which was signed in late 2014.

CAT and DTAC have successfully entered into an agreement to end their disputes. They jointly set up an infrastructure fund in a bid to pave the way for future collaboration.

DTAC wants to rent CAT’s fibre-optic network to provide fixed-base broadband services in the near future.

DTAC operates its 2G mobile service on the 1800-megahertz spectrum under a concession with CAT, which is scheduled to expire in 2018.

Mr Djitt said sharing telecom infrastructure would play a crucial part in the development of the digital economy.

He added that TOT is in the process of selecting strategic private telecom partners, which it expected to conclude next month.

Five companies have submitted partnership proposals to TOT. They are AIS, Samart Corporation, Loxley, True Corporation and Mobile LTE.

AIS, Loxley and Mobile LTE are prospective finalists for the shortlist.

Mr Djitt said TOT and CAT should build their own internet data centres for security purposes.

A data recovery centre needs to be established, especially to serve the Defence Ministry and the Finance Ministry in a bid to accommodate the development of the digital economy.

The government, meanwhile, should establish a new internet data centre with investment of 30-40 million baht in order to serve huge demand for data centre services stemming from the skyrocketing cloud-based services, he said.

Mr Djitt is an adviser to the working committee responsible for implementing policies for the digital economy.