- This is the first time that the concession grantor and concession grantee reach a formal partnership to settle tower disputes and lease towers and equipment for the benefit of both parties, in addition to generating revenue to the government.
- dtac will rent 8,815 telecom towers nationwide from CAT, including related network equipment.
- The agreements mark the start of a new strategic partnership and continued friendship between the two companies.
September 14, 2018 – CAT Telecom Public Company Limited, Total Access Communication PLC., and dtac TriNet Company Limited have signed a service agreement for long-term use of telecom towers and concession network equipment. It benefits all parties, as dtac has now secured the ability to provide its customers with continued service after the end of concession, while CAT can expand its business for new revenue generation.
Ms. Alexandra Reich, Chief Executive Officer, Total Access Communication PLC. or dtac said, “The agreement is an exciting first for the Thai telecom industry and a great benefit to our customers as the contracts between dtac and CAT have been signed before the concession expiry. From now on, both parties will be strategic partners to drive the Thai telecom industry forward. These two agreements bring clarity on the direction of both parties’ business operations in both the near- and long-term future, eliminating any risk of interrupted services. dtac and CAT are now ready to forge ahead with a strong friendship and partnership that provides a sustainable network and infrastructure for the future.”
These historical contract signings between CAT Telecom Public Company Limited, Total Access Communication PLC., and dtac TriNet Company Limited consist of:
1. the tower dispute settlement and tower service agreement.
2. the telecommunication equipment service agreement.
dtac TriNet will pay CAT an advanced service fee of 3.2 billion baht on the signing day. The combined amount of the annual service fee, payable monthly, from the two agreements will be approximately 3 billion Thai Baht annually for a period of 8 years, with a renewal option.
Ms. Reich said, “dtac customers can be confident they will enjoy smooth services after the expiry of the concession. The friendship between CAT and dtac yields the most possible benefits to customers and the Thai telecom industry during this transition period.”
Colonel Sanpachai Huvanandana, President of CAT Telecom Public Company Limited said, “These contract signings represent the first time that the facility owner and concessionaire establish a long-term strategic partnership. CAT has been aiming to develop the country’s network and the infrastructure, as well as the related business, to be modernized and effective, leading to the holistic development of the country’s economy, society, people, and national security. This is also the first time in Thailand that the facility owner ends all disputes over the telecom towers and becomes a strategic partner with the concessionaire.”
These contracts also allow the full utilization of telecom towers, which are the infrastructure for the nation’s crucial mobile network, and their related equipment. Without the agreements, they might be abandoned.
“This collaboration allows the business expansion and generates new revenues to CAT. We have been a national leading digital and telecom service provider. Our business is to operate and deliver a variety of telecom services to customers domestically, internationally, and overseas,” said Colonel Sanpachai.
