Bangkok--Feb 23--TRUE Corporation
Mr. Supachai Chearavonont, President & CEO of True Corporation Plc today clarified that TOT’s announcement to terminate the concession was more of an initiative to start negotiations with the company. Since True has fully abided with the terms and conditions of the concession, investors can therefore rest assured that there are no issues or grounds whatsoever for TOT to terminate the concession. The announcement from TOT to terminate True’s concession was in response to an Arbitrators’ ruling dated February 20, 2006 which ordered TOT Corporation Plc to pay access charge shared revenue to True Corporation Plc.
According to Mr Supachai, the dispute between True and TOT over access charge revenue sharing has been going on for 10 years. The company has tried to negotiate and resolve the issue with TOT but no avail. True was therefore obliged to file the case before Arbitration according to the terms and conditions of the concession. The ruling by the Arbitrators is deemed final which is according to the conditions stipulated by TOT.
“The amount that TOT has to pay True comprises access charge revenue accumulated over the past 10 years, and is in fact only half of what True is seeking in compensation. Nevertheless, we duly respect the Arbitrators’ ruling, and likewise, even if the ruling was in favor of TOT. However, TOT’s linking of the Arbitrators’ ruling with the decision to terminate True’s concession is totally unfounded,” added Mr. Supachai.
In response to TOT taking the case to the Administrative Court to overturn the ruling, Mr. Supachai commented that the concession clearly stated that any disputes between the grantor and grantee of the concession are to be settled by Arbitrators whose ruling will be final. Therefore, it is uncertain on what grounds TOT will file this case, and whether the Administrative Court will accept it. If the court does accept the case, Mr. Supachai hopes that the whole process will be very quick.
As for True’s countermeasures, Mr. Supachai believes that TOT’s announcement to end the concession is more of an initiative from TOT to start negotiations. He further added that True had never considered TOT as a rival, but more of a business alliance. Since TOT and True are part of the few Thai companies left in this industry, he believes that both organizations should collaborate with each other to become more competitive in light of the Thai telecom industry’s liberalization and entrance of foreign competitors. TOT may not want to carry the burden of future access charge payments ordered by the Arbitrators while at the same time True wants to convert its concession with TOT. Both parties can therefore negotiate and find creative solutions rather than fighting over a series of legal battles.
With regard to the concession conversion, Mr Supachai stated that this could pave the way towards liberalization of the telecommunications industry, and that such conversions would be in line with free trade and Thailand’s Constitution.
“In countries where there is liberalization and fair competition, state enterprises are stronger and generate better revenue because the increased competition leads to a bigger market. Under these circumstances, TOT will not be at a disadvantage. However, if the concession is not converted to reflect the infrastructure of fair competition, we will be at a disadvantage due to the terms and conditions of the concession as in past. Rather than wasting resources over court cases, we could both negotiate about the concession conversion and collaborate together to be able to compete before the entrance of foreign competitors into the industry. With this cooperation, we can create the most benefits for the Thai people,” noted Mr. Supachai.
In reference to the access charge revenue sharing issue, a similar case has also been filed with the Arbitrators by upcountry fixed line operator TT&T. In addition, mobile phone operator DTAC is also incurring unfair access charges.
At present, TOT is no longer the industry’s regulator and delaying the concession conversion process is futile. Private operators should get together and work towards liberalization of the industry and fair competition. Despite their differences, True and TOT have been able to get along together, and have sought an independent body such as Arbitrators to settle their disputes.
“All the problems facing the telecommunications industry will gradually fade away. Whether it is the Arbitrator ruling or the NTC who has the authority to liberalize the industry as well as to initiate concession conversions, all these factors will contribute to an interconnection regime where both parties are able to collect access charges instead of only one party, as in the case of TOT. Under these fair competition conditions, many operators will want to enter the market whereby elevating the service quality and offering more choices for the public who are the end consumers.”
“TOT, by suggesting to terminate True’s concession on the grounds that the company has violated joint-operation agreements, is essentially making not only the telecommunications industry but also the country revert back to the monopolistic state without competition. All this contradictory for country that is in the process of moving towards liberalization to give the most benefits to the consumers and ultimately to the entire nation,” concluded Mr. Supachai.
For more information, please contact:
PR Department, True Corporation Plc
Pimolpan Siriwongwan-ngarm
Tel: +66 (0) 2699 2772 Email: [email protected]
Sisadhi Reuben
Tel: +66 (0) 2643 2463 Email: [email protected]
Nawanooch Sanpabopit
Tel: +66 (0) 2699 2744 Email: [email protected]
PR Solution
Prapas Chornsarum
Tel: +66 (0) 2254 2862-3 Email: [email protected]
Chittruethai
Tel: +66 (0) 2656 8059 Email: [email protected]
About True Corporation Plc
True Corporation Public Company Limited is Thailand's only fully-integrated communication solutions provider, convergence solutions leader and premier lifestyle enabler. We provide consumers, small and medium enterprises, and corporations with a full range of voice, data and multimedia solutions customized to meet their needs. We are the largest wireline service provider in Bangkok, the largest broadband provider in the country and a major player in the wireless, cellular and Internet markets. Principal subsidiary companies in the True Group include UBC, Thailand's dominant pay television operator, and True Move, a major mobile phone service provider. True is more than just technology; we are about passion, innovation and service. We bring people together and provide fulfillment through communications. We give people the freedom to live different lifestyles, by providing them with the power to communicate as well as access knowledge, information and entertainment, whenever, wherever, and how they like. Everyday we work in partnership with our customers to develop solutions that can lead to opportunities, and add value to their lives at home, in the office and on the move. For more information please visit: http://www.truecorp.co.th End.