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Bangkok Subway Launch Faces Delay


george

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THAI PRESS: Bangkok Subway Hits Snag Over TOT-TRUE Tussle

BANGKOK: -- The government's plan to commence the implementation of the Bangkok subway line in July may be delayed because of a legal dispute between the state-run TOT Corp. PCL and telecommunications conglomerate TRUE Corp. PCL (TRUE.TH), the Bangkok Post reports.

The report quotes Surapong Suebwonglee, the Information and Communications Technology minister, as saying the trains may not run in July, a month earlier than the initial schedule.

Surapong's comments come after TOT and TRUE, which both provide fixed-line telephone services in Bangkok, claimed the right to provide services from inside the subway tunnels to users outside the subway system.

The report quotes an unnamed source as saying said Bangkok Metro Co., the operator of the subway train, had previously granted TOT the right to construct telecom networks for the subway.

However, Bangkok Metro later canceled the agreement and awarded the contract to a consortium led by TRUE and Advanced Info Service PCL (ADVANC.TH). Advanced Info, owned by Prime Minister Thaksin Shinawatra's family, is Thailand's largest mobile phone operator.

TOT claims it needs the Council of State, the government's legal adviser, to interpret whether TRUE and Advanced Info have rights to provide such services under their concession contracts with the government.

--Dow Jones 2004-05-26

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