Anudith warns CAT not to switch off CDMA network

Anudith warns CAT not to switch off CDMA network

CAT Telecom is prohibited from turning off Hutch's CDMA-based mobile network as long as its controversial third-generation (3G) deals with concessionaire True Corporation remain unresolved, warns the information and communication technology minister.

"CAT must wait for a clear interpretation from the Council of State on whether its contract signed with True is subject to the 1992 Public-Private Joint Venture Act, or it will face a legal challenge," said Gp Capt Anudith Nakornthap.

If the contracts fall under the act, they will be scrapped immediately and future contracts will require cabinet approval, he added.

CAT could also be at risk of prosecution under Section 157 of the Criminal Code, which prohibits state officers from doing something that causes damage to the state, said Gp Capt Anudith.

Guilty parties could face a jail sentence of one to 10 years or a fine from 2,000-20,000 baht, or both.

CAT provides code division multiple access (CDMA) cellular service in 51 provinces, while True operates the service in the 25 central provinces.

He said both CAT and True need preliminary plans to accommodate their 110,000 and 40,000 respective CDMA users while they wait for a decision from the council.

The 1992 law requires scrutiny of any public-private venture worth over 1 billion baht.

Gp Capt Anudith said the True-CAT contracts are being scrutinised by several state agencies.

Most of them have suggested they found irregularities or violations of telecom-related laws, he said.

CAT and two subsidiaries of True Corp, Real Future and Real Move, entered into a partnership in 2011 to provide 3G services on the 850-megahertz frequency.

CAT provides 3G retail services on its My brand, and it sells the 850-MHz bandwidth wholesale to Real Move to provide service under the TrueMove H brand. Real Future's BKFT (Thailand) rents out 3G network equipment to CAT.

Under the contract, both CAT and True can migrate their CDMA customers to the 3G network on a high-speed packet access (HSPA) system within two years after signing a contract.

The state enterprise last March announced a plan to switch off the CDMA network. CAT claimed it was shouldering up to 70 million baht a month to continue CDMA services.

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