Thailand's Dtac has resumed talks with state-owned operator and concession owner CAT over a potential long-term infrastructure partnership.
The companies are exploring establishing a network infrastructure leasing partnership that would allow Dtac to continue operating following the expiration of its 1800-MHz and 850-MHz concessions in September, the Nationreported.
As part of the concession agreement, Dtac is obligated to transfer its network assets to CAT under a build operate transfer arrangement. This would include 9,000 2G towers and related transmission equipment.
But the operator wants to lease back its network assets from CAT to allow it to continue providing services after the concession ends.
As part of a prospective joint venture agreement being negotiated in 2014 and 2015, Dtac would have taken a 51% stake in an infrastructure joint venture with CAT taking the remainder.
But the Bangkok Postreportshttps://www.bangkokpost.com/business/telecom/1432262/dtac-restarts-infrastructure-talks-with-cat that Thailand's Council of State recently ruled that the proposed deal would not comply with conditions of Thai constitutional law, which requires the government to hold at least 51% of core state infrastructure projects.
The Bangkok Post also reported that the companies are negotiating a telecom infrastructure partnership which would allow the two operators to collaborate on any spectrum ranges, not just the spectrum under the expiring CAT concession, and that CAT is seeking to enter a partnership that would last at least 10 years.
The deal would meanwhile allow Dtac to ensure continuity of service for its subscribers, despite the government's recent announcement that it does not expect to hold spectrum auctions that would allow the operator to buy back its expiring spectrum until after the concession expires.