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View Full Version : True and Hutch mobile are dealing for business



Kanok Karn
3rd January 2011, 14:22
True Corporation has successfully taken over the small Hutch mobile business in a transaction valued at 4.35 billion baht, after more than one month of deal negotiations.

The telecom conglomerate announced yesterday that Real Move, its 3G investment arm, would purchase a 92.5% stake in Hutchison Wireless Multimedia for 4.35 billion baht. Real Future Co would acquire all shares in an affiliated company, BKFT (Thailand).

The takeover will give Real Move control of three firms under the Hutchison Wireless Multimedia Holdings: Hutchison CAT Wireless Multimedia, Hutchison Multimedia Services (Thailand) and Hutchison Telecommunications (Thailand).

BFKT owns the Hutch network that serves the 25 central provinces including Bangkok. It has leased the network to Hutchison CAT Wireless Multimedia, a 74:26 joint venture between Hong Kong-based Hutchison and CAT Telecom, to provide service under the Hutch brand. Its 15-year marketing contract with CAT ends in 2015.
In a statement to the SET, True said that BFKT would continue providing telecom services to CAT, the rental of 3G high-speed packet access (HSPA) services in particular, meanwhile, would be a reseller of the service by purchasing mobile network capacity from the state telecom enterprise.

A planned auction of commercial 3G licences by the National Telecommunications Commission (NTC) earlier this year was scrapped following a legal challenge to the authority of the regulator to award the licences.
True said the deal would potentially give True Move, the country's third-largest mobile operator, a key advantage over its two bigger rivals, AIS and DTAC, in the race to roll out 3G wireless broadband services.