Singtel's AIS to rent 155 telco towers from CAT Telecom under settlement

SINGAPORE Telecommunication's (Singtel) Thai associate Advanced Info Service (AIS) on Wednesday agreed on a settlement with CAT Telecom over telecommunication tower disputes between CAT and AIS subsidiary Digital Phone Company.

The settlement consists of three disputes which have been under the arbitration process, and two disputes under Thailand's civil court, in total legal claim of 860 million baht (S$37.4 million), excluding default interest and other damage claims.

The settlement resulted in the ownership of 155 telecommunication towers under dispute going to CAT. AIS and CAT entered into a tower dispute settlement and tower service agreement for the long-term use of the towers.

AIS subsidiary Advanced Wireless Network (AWN) agrees to rent the towers from CAT, while CAT agrees to use the space and maintenance service from AWN for five years from July 1, 2020 to Sep 15, 2025 for a net total value of 186 million baht, inclusive of the expense for dispute settlement and other compensation.

Singtel shares were trading at S$2.30 as at 9.05am on Friday, down S$0.02 or 0.9 per cent.