MCOT Reports Lawsuit Progression against NBTC, Sharing 1st Installment with Playwork

MCOT Public Company Limited (MCOT) has announced that the company is in the process of filing the lawsuit to the Administrative Court. The NBTC has issued a letter dated August 28, 2020, informing MCOT of the first installment of compensation of 146,329,979.98 Baht (one hundred forty-six million three hundred and twenty-nine thousand nine hundred and seventy-nine Baht ninety-eight satang).

The NBTC also requested MCOT to comply with the NBTC’s Notification Re: Criteria, Methods and Conditions on Recall of Unused Spectrum, Article 14 “In recalling unused spectrum from the owners for reallocation, the NBTC will determine methods and conditions for compensation to be paid to those who are affected on a case-by-case basis.

 

The NBTC may determine compensation payment for the affected party in consideration with compensation for the spectrum owner. The spectrum owner is required to pay an amount of compensation and interest as specified by the NBTC to the affected party within 15 days upon receipt of compensation from the NBTC. To comply with paragraphs 1 and 2, the NBTC may choose more than one method.

 

Moreover, MCOT is requested to conform to the Resolution of the NBTC’s Meeting No. 10/2020 on June 10, 2020, which specifies MCOT to compensate the affected party, in this case, Playwork Co., Ltd., in accordance with the Company’s letter No. 6100/1250, dated June 4, 2020, within 15 days upon receipt of compensation from the NBTC”.

 

The Board of Directors of MCOT at the Meeting No. 12/2020, on September 1, 2020, considers the first installment of compensation for the recall of the 2500 -2690 MHz spectrum and is of opinion that the NBTC has the administrative authorization to perform duties as specified in Act on the Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 and amendments and to order compensation payment to MCOT, whose spectrum was recalled in accordance with the NBTC’s Notification, which is deemed an administrative order that MCOT is obliged to comply with.

As a consequence, MCOT’s Board of Directors resolves that MCOT complies with the NBTC’s letter No. Sor Tor Chor 2006/25925 dated August 28, 2020 Re: Compensation Payment for Recall of 2500-2690 MHz Spectrum, as follows:

1) To approve the receipt of the first installment of the compensation payment for the recall of the 2600-megahertz spectrum, amounting to 146,329,979.98 baht and the subsequent installments in compliance with the NBTC’s Resolution at the meeting No. 10/2020 on June 10, 2020.

 

2) To approve to pay compensation to the affected party, Playwork Co. Ltd., in equal amount within 15 days from the date of receiving the compensation payment from the NBTC. The first installment will be 73,164,989.99 baht and the subsequent installments according to the NBTC’s Resolution at the meeting No. 10/2020 on June 10, 2020, disbursed from the account of MCOT

 

In addition, MCOT stated that receiving the first installment of compensation from the NBTC does not signify that MCOT accepts the entire conditions of the compensation payment. This is for the purpose of lessening damages that may arise from the administrative order. To clarify the stance on disagreement with the conditions of compensation payment from the NBTC, MCOT has submitted the appeal against the NBTC’s Resolution in writing and reserved the rights to file the lawsuit claiming the NBTC for reconsideration of the Resolution on compensation payment.

The filing of the administrative case is in accordance with MCOT’s appeal against the NBTC’s Resolution especially determination of the amount of compensation, installments and consideration processes to align with relating laws and regulations.