Hutchison selling network to CAT

       CAT Telecom is expected to wrap up negotiations to buy the Code Division Multiple Access (CDMA) 2000 1-x cellular network in 25 provinces from Hong Kong telecom giant Hutchison Telecom in December.

       CAT's chairman of the executive committee, Krisda Kaweeyarn, said yesterday that the Hong Kong telecom informed CAT two weeks ago its agreement to sell the network to CAT.
       In the next step CAT will appoint a financial adviser to conduct due diligence in the transaction while asking Hutchison Telecom to sign the network sales memorandum of understanding with CAT.
       "After the MoU, we'll talk with Hutchison Telecom on more details of the network purchase. We expect to conclude the deal in December," he added.
       CAT operates its CDMA network in 51 provinces, while Hutchison-CAT Wireless Multimedia provides the cellular service on the separate CDMA network in 25 provinces under the Hutch brand and under CAT's service-marketing agreement.
       Hutchison-CAT, the join venture of CAT and Hutchison Telecom, has leased the CDMA network in 25 provinces from BFKT, wholly owned subsidiary of Hutchison Telecom, to provide the cellular service. CAT wants to merge the two separate CDMA networks to enhance the service offering.
       Krisda said that after the complete transaction, CAT would terminate the BFKT network-leasing agreement and Hutchison-CAT service marketing agreement. Then CAT will seek a partner to jointly provide the service on the merged network.
       He said that telecom operators in the US, China, South Korea and Japan have shown interest in being CAT's partner in the matter, given that they have provided the CDMA service in their countries as well.
       In a related matter, the CAT board directors will convene on Wednesday to officially appoint Jirayuth Rungsrithong as the state agency's new president.