Saturday, April 07, 2007

COMMUNICATIONS

TOT banks on revised definition of 'access'

Srisamorn Phoosuphanusorn

TOT Plc has redefined access charges in a way that could force private mobile operators under CAT Telecom concessions to bow to their original contract conditions.

The definition change by the TOT board's audit committee has ignited hopes at the state telecom enterprise that it can win access-charge disputes with the mobile operators DTAC and True Move.

Djit Laowattana, a TOT board spokesman, said the modified definition should help when it files lawsuits against the two companies sometime this month.

Under the legal definition, he said, access charges are the fees that TOT recovers for the compensation costs arising from the use of its network for the purpose of modifying the different systems of private operators into a single TOT platform.

In the past, he said, access charges had been widely acknowledged as the fees imposed by TOT for allowing other networks access to each other via its fixed-line facilities. However, TOT now believes it can make a case for a more comprehensive definition of access.

DTAC and True Move hold concessions from CAT Telecom. They must pay TOT an access charge of 200 baht per number per month for postpaid clients.

Market leader Advanced Info Service, which operates under a concession with TOT, does not have to pay access charges. Also, it pays a revenue-sharing charge of 20% for the remaining life of its concession through 2015, compared with 20% to 30% for DTAC and True Move.

DTAC and True Move stopped paying access charges last Nov 17 and began paying interconnection charges instead to eliminate what they say is a clear competitive advantage held by AIS.

The National Telecommunications Commission, the industry regulator, last year approved interconnection charges, the fees that operators charge each other for handling traffic across their networks.

However, TOT, which earns up to 14 billion baht annually from access charges paid by CAT concessionaires, has been resisting pressure to adopt the new system.

Sigve Brekke, DTAC's chief executive, said his company would continue to refuse to pay access charges unless a court orders it to do so. But, he said, DTAC would respect any decision the court makes.

Executives of DTAC and True Move met with the TOT board this week and all parties agreed that a court ruling was needed to resolve the impasse.

Mr Brekke expressed confidence that DTAC had a great chance to win the legal case with TOT over access charges.

If the court decides in favour of TOT, he said, DTAC would revise its interconnection payment system with other private operators. DTAC already has signed interconnection agreements with AIS, True Move and TT&T.

"If we lose the case, DTAC will pay only the access charges to TOT, not both interconnection and access charges," said Mr Brekke.

Bangkok Post

Last Updated : Saturday April 07, 2007

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