Regulator rejects CAT's payout request

Regulator rejects CAT's payout request

The national telecom regulator has dismissed CAT Telecom's request seeking compensation for lost revenue from network rental fees caused by the regulation requiring mobile customer retention.

CAT Telecom claims it is facing potential revenue loss of 14 billion baht since it is unable to earn revenue from network rental fees from its concessionaire True Move, due to the regulation that True Move has to retain its existing 2G customers for another year after its mobile concession expired last September.

"The request is unacceptable. As a state telecom enterprise and the concession owner, CAT must realise its responsibility to oversee mobile customers," said Col Settapong Malisuwan, vice-chairman of the National Broadcasting and Telecommunications Commission (NBTC).

True Move and Digital Phone Co (DPC), a subsidiary of mobile leader Advanced Info service, each held 12.5 megahertz of bandwidth on the 1800-MHz spectrum under concession agreements with CAT.

But the NBTC last year passed a regulation and ordered True Move and DPC to oversee their remaining 17 million customers using 2G service on the 2G network. Under the regulation, the companies cannot acquire new customers and must transfer existing customers to other network as soon as possible.

True Move now has 4 million customers on the 2G service and DPC 4,000.

The NBTC had planned to auction off the 1800-MHz spectrum, previously operated by True Move and DPC, for 4G service in September. The government in July ordered the suspension of planned auctions for one year. This resulted in the extension of retaining 2G service for another year.

Col Settapong said the NBTC plans to discuss ways to seek a resolution with related parties including CAT, True Move and DPC next month.

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