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Fri, April 27, 2007 : Last updated 21:10 pm (Thai local time)



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Home > Business > Operators jump into TOT's plan for network pool





Operators jump into TOT's plan for network pool

Major telecom operators have agreed in principle with TOT's plan to create a national telecom network pool, which the state agency says will lead to the conversion of their concession contracts.

The TOT committee in charge of the network-pool project met with top executives of Advanced Info Service (AIS), Total Access Communication, True Corp and TT&T yesterday to present them with the idea of the network pool and ask for their support.

Committee chairman Vuthiphong Priebjrivat told the meeting that part of the project would involve the conversion of their concession contracts into leasing contracts for the pooled networks.

True chief executive Supachai Chearavanont said the conversion would put all telecom operators' concessions on an equal footing.

Like Supachai, TT&T president Prachaub Tantinont supports the network-pool idea and said the project should be realised within the period of the junta-backed government, "which has a strong mandate".

TT&T has paid an annual concession fee of 43 per cent to TOT, the highest rate in the industry.

AIS president Wichian Mektrakarn also supports the plan and wants to see more substantial details.

Vuthiphong said he would complete the details of the project within the next three months before submitting the plan for Cabinet approval.

TOT initiated the idea of a pooled network in March by citing the need to maximise the utilisation of networks, which would bring down the cost of communications for consumers.

The network-pool plan would see the establishment of a state-owned holding company with 100-per-cent stakes in TOT and CAT. The company would manage the TOT and CAT networks.

The holding firm would also buy the networks from the state electricity agencies and then negotiate with private telecom concessionaires wanting to join the pool.

TOT said the incentive for the private sector to join the pool was that private operators would have their concession contracts converted into network-rental contracts and pay rental fees to the holding firm, instead of huge annual concession fees.

They could also terminate the access charge, and there would be no expiry date for the rental contracts. The access charge is paid by all three private cellular concessionaires of CAT to TOT for connecting different networks through TOT facilities.

However, the Information and Communications Technology Ministry recently said the network pool should not be involved with concession conversion, to avoid legal complications.

Despite the ministry's disagreement, Vuthiphong said the project must be continued for the benefit of consumers.

He gave the same answer when asked what would happen if the Council of State ruled that all private telecom concessions had breached the law and that such a ruling would affect the network pool in one way or another.

The ICT Ministry submitted all private telecom concessions for examination by the Council of State to determine whether their past amendment complied with the relevant laws.

Vuthiphong believes the government will back the pool plan if it can provide benefits to consumers.

Usanee Mongkolporn

The Nation








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