True Corporation insists it will not scrap its existing third-generation (3G) network contract with CAT Telecom, saying it would be impossible.
"We're determined to amend the six issues to comply with the order by the National Broadcasting and Telecommunications Commission (NBTC) and not scrap the existing contracts and draft new ones to replace them," said chief executive Suphachai Chearavanont.
He said True is also willing to change any other issues beyond the required six ordered by the NBTC if that would be of mutual benefit.
The board of CAT Telecom last Wednesday agreed in principle to scrap the existing 3G network contract with its concessionaire True to avoid a possible legal backlash.
The state telecom enterprise is drafting an entirely new contract to replace the existing one. Under the new draft, True would become a mobile virtual network operator for CAT Telecom.
Unlike the existing contract, the new draft will require approval by the CAT board before passing to the Information and Communication Technology (ICT) Ministry for consideration and finally the cabinet.
Mr Suphachai stressed that the NBTC ordered CAT and True to amend six issues in the contracts, not change them entirely.
"We need to talk with CAT as soon as possible," he said.
True took over Hutchison CAT Wireless Multimedia, a joint venture of Hong Kong's Hutchison and CAT Telecom that had operated for a decade.
"I don't understand why everyone came out trying to suspend our 3G service and asking us to wait for a 3G licensing auction scheduled in October," said Mr Suphachai.
He said the company would not delay its 3G network expansion and customer acquisition as the ICT minister suggested.
"We'll continue our 3G business and investment plan as usual," he said.
Mr Suphachai also said True could face losses this year and next year due to the 3G investment project. The group may also be unable to pay dividends over the next two years.
He said True will definitely participate in the 3G auction, hoping to acquire 15 megahertz of the international 2100-MHz frequency.
CAT chief executive Kittisak Sriprasert said the CAT board will meet again on Aug 15 to consider the draft.