TOT is banned from all future projects commissioned by the National Broadcasting and Telecommunications Commission (NBTC) after the regulator on Friday nullified three contracts under the Universal Service Obligation (USO) Net project that had been awarded to the state telecom enterprise, citing contractual violations.
The three contracts are among eight awarded by the NBTC to five winners in a 2017 e-auction to provide low-fee fixed broadband internet service, as well as cellular service, to 3,920 villages.
The telecom regulator plans to hold another e-auction for tasks TOT failed to deliver in line with the terms of reference (ToR), especially those in connection with the broadband network and USO buildings.
TOT has 15 days to detail completed tasks to the NBTC and receive payment. TOT also needs to discuss a financial penalty for failing to meet the deadline for some facets.
The resolution came from the NBTC committee monitoring the project, said secretary-general Takorn Tantasith.
"TOT failed to complete the tasks required under the ToR, even after one year from the due date," Mr Takorn said. "The financial penalty has reached 800 million baht."
The NBTC stopped tallying the penalty fees after terminating the contracts yesterday.
The commission signed eight contracts worth 13 billion baht with five bid winners in late 2017. The five winners were TOT, CAT Telecom, True Internet Corporation, TrueMove H Universal Communication and Interlink Telecom.
The USO Net project, which is aimed at bridging a digital divide in the country, was expected to help further improve Thailand's global competitiveness ranking, as evaluated by the World Economic Forum.
Mr Takorn said the NBTC had no choice but to terminate the contracts to prevent further harm to the public interest, especially in remote areas.
Under the USO Net project, designated villages will be able to access broadband internet services at a minimum connection speed of 30 megabits per second for a monthly fee of up to 200 baht.
Under the project, four contracts involve broadband internet services and four concern mobile phone services.
TOT won a 2.1-billion-baht contract to install internet broadband service in the North's Zone 2 and a 2.4-billion-baht contract for the same service in northeastern provinces. The state telecom enterprise also won a 1.8-billion-baht contract to provide mobile phone service in the North's Zone 1.
Mr Takorn said TOT only finished the tasks involving mobile access nodes and mobile service, for which the NBTC plans to pay TOT.
TOT used the wrong fibre-optic specification for the broadband network scheme, a mistake the NBTC committee found unacceptable.
TOT also failed to construct USO Net buildings on time. Only three of 371 agreed buildings were completed.