ADVANC Takes further Legal Action in Prepaid Service and Roaming Expense Dispute with TOT

Advanced Info Service Public Company Limited (ADVANC) has made an announcement on 29 January 2020, in reference to the dispute submitted to the Arbitration Institute on 30 September 2015 and 30 November 2015, by ADVANC and TOT Public Company Limited (TOT).

 

Under such dispute, TOT claimed for an additional payment of Baht 62,774 million under the amendment no.6 and no.7 to the Cellular Mobile Telephone Service agreement. TOT claimed that the amendment no.6 (amended on 15 May 2001 regarding the reduction of revenue share in prepaid service) and no.7 (amended on 20 September 2002 regarding the deduction of roaming expense) resulted in the loss of benefit to TOT when compared to the main service agreement.

ADVANC informed that on 29 January 2020, the company received the award of the Arbitral Tribunal by majority vote (3:2) ordering ADVANC to make the payment of Baht 31,076 million plus an interest of 1.25% per month commencing from 30 November 2015.

ADVANC reported that the company disagreed with such an award for the reason that it was unlawful. Therefore, the company is proceeding to submit the case to the Central Administrative Court for the revocation of the Arbitral Tribunal’s award within 90 days after receiving the award.

As the dispute is not final and ADVANC will take further legal action, such award does not impact the company’s financial status, liquidity nor the ability to service debts. Should there be any further significant update, ADVANC will inform you accordingly.