REPORTS CORRECTION OF CONCESSION CONTRACT
24 September 1996
Due to Advanced Info Service Plc (ADVANC) has negotiated about
concession contract with Telephone Authority of Thailand (TAT) and has
already reached the agreement. Both have signed in the contract in
September 20, 1996 and the company would like to report important
information concerning the contract as follows:
1. The company has been granted to operate NMT 900 and GSM Cellular
Mobile Telephone system across the country from 20 years to 25 years since
the first operating day.
2. The company can invest in the construction of network system
necessary but to inform TAT first, and
2.1 The company is to use the linked signal system or anything
made by the company without any expenses. TAT, however, can benefit from
the network or any assets by allowing the company to manage profits for
TAT. The service fee and other compensations will be negotiated
periodically.
2.2 TAT has to pay any damage or loss revenue to the company if
TAT has done anything which eliminated the right to manage profits from
the linked signal system of the company.
2.3 TAT has no right to sell, transfer, rent, or mortgage and
will not allow anyone to ruin the system or increase the burden of system
maintenance.
3. In the case TAT granted private firms to operate Mobile Cellular
system, the proportion of compensations will not be different in which to
take advantage of the company.
4. If TAT can not provide the linked signal system to the company, the
company will lease the system from other sector but will come back if TAT
is ready.
5. The company will:
5.1 pay low compensation for the 21-25th year of Bt1,460,060,000
per year or 30% of revenues.
5.2 The compensation will be calculated from service revenue not
including VAT and to be effective when sign in the contract.
6. In the case there is a change in technology which causes the
company's network to work inefficiently, the company has right to modify
or adjust the network to match a new technology using the company's
expenses. And if the company is willing to have additional service of
mobile phone, it will negotiate with TAT later.
7. TAT allows the company to link Mobile Cellular network to the
International telephone lines system of Communication Authority of
Thailand (CAT).
Translated by the Nation