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Thailand: State 3G provider seeks to bypass expensive legislation in joint venture

By  |  March 31, 2013

TOT, a state-owned leading provider of 3G mobile telecom access, is reportedly eager to finalize its joint venture with Advanced Info Service (AIS) within 2013 as part of its business survival plan. As the nation’s Frequency Allocation Law would require TOT, as well as CAT Telecom, to transfer concession fees to the Broadcasting and Telecommunications Commission, the two bodies are looking for non-concession revenue sources to endure. If TOT’s joint venture with AIS is finalized, AIS would transfer its network assets to TOT, renting the assets from TOT for the duration of their partnership. Specifically, reports say TOT would obtain 13,000 telecommunications towers from AIS before the concession ends in 2015. Sources have additionally told the media that AIS will also be required to ensure the revenue made by TOT for the rentals would at least equal that of TOT’s current annual concession revenue.

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