BANGKOK: True Corp Pcl, Thailand’s largest full service telecoms provider, will be able to pay for its newly acquired 4G mobile data licence through its own cash and bank financing, its chief financial officer said on Thursday.
True won the licence for 76.3 billion baht ($2.1 billion) in December auction. Noppadol Dej-Udom told Reuters the company has about 10 billion baht in cash, enough to pay the first instalment of 8.04 billion baht for the licence. The third-largest mobile operator has also received credit guarantees from banks for the rest of the fees, Noppadol added.
“We are ready to pay. The payment will be done soon,” Noppadol said. True, 18 percent owned by China Mobile, and broadband operator Jasmine International won the auction for two 4G licences with a combined value of $4.2 billion, almost 500 percent higher than starting prices. Industry analysts had said the companies may find difficulties in obtaining financing for the licences.
Regulator National Broadcasting and Telecommunication Committee (NBTC) had offered the winners flexible payment terms, which allow them to pay a majority of the bidding price in the fourth year after receiving the licence.
Settapong Malisuwan, the NBTC’s vice-chairman, told Reuters True and Jasmine have until March 21 to seek financing, and both had already been in touch about equipment imports. If the companies fail to make that deadline, the regulator can ask the companies to pay the full licence cost in addition to other fees, Settapong added.
