Advanced Info Service Public Company Limited (ADVANC) has announced that on 4 September 2019, the company has entered into the tower dispute settlement and tower service agreement with TOT Public Company Limited (TOT).
TOT and ADVANC agreed to settle the dispute no. 53/2557 in the Arbitral proceedings regarding the telecommunication towers, resulting in the towers under the dispute are owned by TOT.
In the agreement, Advanced Wireless Network Company Limited (AWN), ADVANC’s subsidiaries, agreed to use telecommunication towers from TOT while TOT agreed to use the space and maintenance services from AWN for 10 years starting from January 2019. Both parties agreed to a usage base fee for the use of the tower, space rental and maintenance service with an estimated total net value for 10-year period of approximately 28 billion baht.
Previously, AWN had paid the tower service fee to TOT on a monthly lump sum basis of approximately 300 million baht since the end of the concession. Entering into this agreement allows both parties to fairly make long term use of the towers in supporting AWN’s telecommunications service as well as for TOT to secure revenue from tower rental on an appropriate term considering its actual and potential use.