Court tells TOT to talk with DTAC on cross-network fees

KOMSAN TORTERMVASANA

The Central Administrative Court has ordered TOT Plc to negotiate an interconnection contract with the mobile operator DTAC. The court yesterday turned down an appeal from TOT seeking to overturn an earlier order from the National Telecommunications Commission (NTC) to hold interconnection talks.

The TOT board is expected to meet today to discuss the state telecom enterprise's response to the verdict and whether to begin talks with DTAC.

Interconnection is a framework on how toll revenues are to split between operators for calls routed across different networks. But implementing interconnection fees has been a legal quagmire, with TOT refusing to acknowledge the authority of the NTC to impose the framework and supersede the terms of existing agreements.

DTAC and True Move both stopped paying access charges as required under their concessions in November 2006 in favour of the NTC's interconnection framework.

TOT, which faces the potential loss of billions of baht in annual revenues if interconnection goes forward, has filed a lawsuit seeking payment of the access charges. The NTC, meanwhile, has imposed fines of 60,000 baht per day against TOT since February for its refusal to comply with directives to negotiate an interconnection agreement.

NTC secretary Suranant Wongwittiyakumchorn said the court essentially turned down a request from the TOT to overturn the fines and directed the state enterprise to hold talks with DTAC.

Mr Suranant said the NTC was within its rights to fine TOT, as all telecom operators were obliged to comply with the order to enter into the interconnection framework.

TOT's petition to the Administrative Court had sought to overturn the fines pending a separate ruling on the legality of the interconnection framework. ''We believe that TOT will pay the fines and enter the negotiation process,'' he said.

DTAC chief executive officer Sigve Brekke welcomed the court ruling.

''The court decision is clear that TOT should negotiate an interconnection agreement with DTAC for the general benefit of the public,'' he said.

''The interconnection framework is laying the ground for liberalisation and fair competition within the industry.''