Thai state-owned operator CAT has been ordered by regulators to amend its disputed 3G contract with private operator True within 30 days, or face the revocation of its 3G license.
Telecom and broadcasting regulator NBTC has made the ultimatum on the basis that the arrangement – whereby True is providing 3G services over CAT's nationwide network – has been deemed illegal, Bangkok Postreported.
But CAT and True are reportedly in talks to hammer out a solution to the problem, including potentially True selling back BFKT (Thailand) to CAT, which could eliminate any concerns.
Thailand's Frequency Allocation Act 2010 requires spectrum owners to manage spectrum rights on their own. Under the CAT-True deal, BFKT is responsible for procuring towers and equipment for the 3G network.
Both the senate and the ICT ministry have stated that the deal appears to be in violation of the Act, but CAT believes that a transfer of ownership of BFKT would bring the arrangement in line with the rules.
True's mobile division, TrueMove, has been offering 3G services under the brand TrueMove H.
True and CAT first entered the controversial 3G agreement, which involved True taking over a mobile business previously operated by Hutchison, in January 2011.