DTAC files petition against CAT-True tie-up; downgrades Singapore listing status

26 Apr 2011

Thailand’s second largest cellco by subscribers, Digital Total Access Communication (DTAC), has filed a complaint with the Central Administrative Court, questioning the legality of the recent agreements between state-run CAT Telecom and True Corp (True Move) on joint investment in HSPA and CDMA services, reports Thai newspaper The Nation. DTAC has requested an injunction order requiring CAT to refrain from executing the obligations under these agreements until all relevant authorities have been given an opportunity to review and approve the transactions between CAT and True, which recently took over the CDMA business of CAT’s previous Thai joint venture partner, Hutchison. CAT has entered into several retail/wholesale agreements with True’s subsidiaries including Real Move and BFKT to jointly roll out and operate HSPA infrastructure and CDMA services. However, Jon Eddy Abdullah, CEO of DTAC, claimed that: ‘The transaction is anti-competitive, unlawful and discriminatory against other operators.’ He continued: ‘We are disappointed that the government has chosen not to act more proactively to ensure compliance with Frequency Act (Section 46), the State-Private Participation Act and competition law requirements.’

In other news, DTAC’s shareholders last Thursday approved a plan to change its listing status on the main board of the Singapore bourse to a ‘secondary’ from its existing ‘primary’ listing. The change in listing status will help reduce the company’s compliance obligations with Singapore bourse regulations. The company has no immediate intention to delist from the Singapore stock market despite the marginal portion of around 1% of existing shares traded on that market, stated chairman Boonchai Bencharongkul.

Thailand, CAT Telecom, Digital Total Access Communication (DTAC), True Move