CAT Telecom's board on Monday approved a 49:51 joint venture with Total Access Communication (DTAC) for managing the latter's transmission network, to end a legal dispute over the ownership of the network under DTAC's concession from CAT, valued at more than Bt10 billion.
DTAC would hold the majority 51 per cent in the joint venture.
Sanpachai Huvanandana, acting chief executive officer of CAT, said DTAC would be required to inject cash into Tower and Fibre Joint Venture Co, according to the proportion of its shareholding, and transfer its network to this joint venture.
Then DTAC could continue using the network until its concession ends in 2018 without having to pay any rent.
DTAC yesterday declined to comment on this matter.
CAT and DTAC have been engaged in a legal battle over 10,419 telecom towers under the concession.One of the main disputes is the company's refusal to transfer the network under the concession to CAT.
Sanpachai said the court's ruling in favour of CAT on May 21 had given the agency bargaining power in setting up the joint venture with DTAC.