ZTE ends standoff over TOT 3G tender

Melissa Chua
20 Apr 2011

ZTE has withdrawn a petition attempting to block Thailand’s TOT from awarding a nationwide 3G expansion contract.

The deal, worth 16.29 billion baht ($542.27 million), had been awarded to the SL consortium of Samart Telcom and Loxley. ZTE and Ericsson had been disqualified during the final bidding round – the former for providing ‘unrealistic financial calculations’ and the latter for the exclusion of antenna related products in its bid.

Both ZTE and Ericsson had expressed displeasure at the disqualification, with the former saying it would lower prices by 5 billion baht if it won the contract. The two companies subsequently filed petitions to Thailand’s administrative court seeking injunctions to block the signing of the contract.

According to the Bangkok Post, industry sources said ZTE had withdrawn the court case after reaching a mutually beneficial agreement with TOT, the details of which were not disclosed.

ZTE’s withdrawal may not, however, permit the deal between TOT and the SL consortium to go ahead. Ericsson Thailand has said it will move forward with its own case and has already submitted the paperwork in support of its petition to the court.

The contract between TOT and the SL consortium was due to be finalized February 11.

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