CAT ANGRY OVER LAWSUIT, SET TO PULL CONCESSION FROM TRUE MOVE

       CAT Telecom has threatened to terminate the concession contract of its private mobile concession True Move, citing lack of good faith and its recent filing of a lawsuit against CAT.

       CAT executive chairman Krisda Kaveeyarn said yesterday that under the concession contract, CAT could terminate the True Move concession if it caused any damage to the state concession owner.
       The state agency might also decide not to allow True Move to lease CAT's network for an additional five years after True Move's concession ends in the next four years. It might also disallow True Move from using its 850 MHz spectrum to provide 3G wireless broadband service on a trial basis, he added.
       True Move and Total Access Communication (DTAC) have both provided the 3G service on their existing 850 MHz spectrum on a trial basis with permission from CAT.
       The threatening move from CATcame after True Move filed a civil case against CAT and also the state agency's two executives on September 24 to demand compensation of Bt50 million, citing that CAT had caused damage to True Move's image.
       True Move said CAT has declined to return its bank guarantee regarding the minimum concession fee it had paid to CAT during the past three years. The CAT declined to return such guarantee amount later makes four banks from which it regularly seek bank guarantees decline to continue to provide the bank guarantee to True Move this year for paying such concession revenue minimum guarantee to CAT.
       CAT explained it had to seize True Move's bank guarantee as the service provider had declined to pay the full concession fee to CAT and had instead deducted the interconnection fee. Therefore, CAT had seized the company's bank guarantee of Bt 350 million in 2006, Bt380 million in 2007, and Bt580 million in 2008. True Move has to pay the minimum concession fee guarantee of Bt640 million this year.
       CAT also held back DTAC's bank guarantee as DTAC had deducted the interconnection fee from the concession fee first before paying the remaining concession fee to CAT. But banks still provide bank guarantee to DTAC on the matter due to its healthy financial status.
       True Move's chief executive officer Supachai Chearavanont said the company has no intention to be in conflict with CAT but the company had to let the court decide the case for the good of both sides.
       Currently True Move is engaged in seven legal cases with CAT. Six of them are cases CAT has filed against True Move with the Arbitration Panel, while the one has been filed by True Move against CAT.
       The CAT board yesterday ordered the state agency's chief executive officer Jirayuth Rungsrithong to talk to True Move on how they could proceed with the cases.
       Among the cases CAT has filed against True Move is the telecom excise tax. In 2006, the Thaksin Shinawatra government issued an executive decree to order all private fixed-line operators and cellular operators to pay part of the concession fee as the excise tax first before paying the remaining concession fee amount to their state concession owners CAT and TOT. This affected the concession revenue of TOT and CAT as earlier they had gained the full concession fee amount from the private concessions. However, the next government terminated the telecom excise tax in 2007. CAT asked True Move to pay the concession fee of Bt6 billion, which is the amount the company paid as telecom excise tax.
       CAT senior executive Hansa Chivapruek said that the stage agency had already asked the Council of State in September to rule if it could allow private mobile concessionaires to offer the 3G service on commercial basis on their existing 850 MHz spectrum. If the Council of State rules it is permissible, CAT would allow True Move and DTAC to provide such service commercially.
       But Krisda said that as True Move has already filed a lawsuit against CAT for damaging its image, CAT might not support the company in the matter.
       "We don't want the company without good faith to do business with us," he added.