Kudun and Partners has advised Digital Phone Company (DPC), a subsidiary of Thailand’s largest telecommunications operator, Advanced Info Service (AIS), in an arbitration proceeding against state-owned CAT Telecom.
A Thai arbitration tribunal ruled that DPC did not need to compensate CAT Telecom following the expiration of their concession agreement. CAT Telecom can petition the ruling.
Kudun and Partners’ team was led by partners Somboon Sangrungjang and Pariyapol Kamolsilp, with the help of associates Kongwat Akaramanee and Attapon Tanasanti. “As the telecommunications sector remains one of the most heavily regulated industries in Thailand, we have taken the approach of understanding the client’s industry,” Sangrungjang told Asia Business Law Journal.
The case began in January 2018, when CAT submitted to the alternative dispute resolution office of the Thai Arbitration Institute, referring to the agreement for operations of cellular telecoms services between CAT and DPC, which had already expired.
Under the dispute, CAT had demanded that DPC transfer the ownership of an infrastructure holding, including a call centre system and 4,657 towers, as well as claiming compensation of THB13.4 billion (US$450 million) plus an additional claim for opportunity loss of THB116 million per month, with 7.5% interest per year.