TOT to sue CAT for up to USD4.6 billion

11 Apr 2011

The board of directors of Thai state-run telco TOT has voted in favour of suing CAT Telecom over what it claims are overdue access charges, reports Thai newspaper The Nation. Before November 2006, CAT and private cellcos holding concessions from CAT – True, DTAC and AIS – paid an access charge of THB200 (USD6.50) per month per number to TOT for routing their subscribers’ calls via TOT’s network to other networks. However, during that month national regulator the NTC introduced an interconnection charge regime which resulted in the operators paying each other for interconnection, which led to the stopping of payments to TOT. In addition, CAT also stopped sharing 50% of its concession revenue with TOT. TOT filed a damage claim at the time but the Civil Court dismissed the case on the grounds that it was beyond its purview. Last year the country’s telecoms ministry set up a panel to investigate the matter, and despite calling TOT and CAT in for talks, no agreement was reached. In February this year the panel concluded that TOT should sue for compensation. TOT says that the accrued charges and concession fees that it is owed amount to THB140 billion (USD4.6 billion).

Thailand, CAT Telecom, TOT