New proposal for TOT to take over Thai Mobile

27 May 2008

A tentative agreement has been reached in the long-running debate over the ownership of Thai Mobile, reports the Bangkok Post, as state-run telco TOT agreed to purchase its sister company CAT Telecom’s 42% stake in the failed cellco for THB2.4 billion (USD75 million), to take its holding to 100%, whilst assuming total debts of THB7 billion. However, TOT wants to pay the asking price in installments over twelve years whilst CAT is seeking a five-year payment period. The preliminary agreement was reached at a meeting of the ‘super board’ of both state enterprises, ahead of submission to their respective boards for approval this week, with the ICT ministry allowing a further ten days for the two parties to arrive at a final deal. Thai Mobile is the country’s sole owner of 2GHz UMTS mobile frequencies but has failed to roll out 3G services and has an estimated GSM user base of just 45,000, most of them reportedly civil servants and state enterprise staff.

Thailand, CAT Telecom, Thai Mobile, TOT