Thai Minister Wants to Resolve Alleged Irregularities in Mobile Phone Service.

Jul. 28--The future of a planned new national mobile-phone network hangs in the balance until the Communications Authority of Thailand can clarify questions about alleged irregularities and lack of transparency in the project.

The demand for clarifications has come from Wan Muhamad Nor Matha, the transport and communications minister, following the state agency's uncharacteristically speedy approval of a proposal by a little-known company.

The company, SBP Holding, offered to build a network worth 29.9 billion baht and lease it back to the CAT for 15 years. The network would use CDMA (code division multiple access) technology, which has failed to find a market in many countries where other technologies such as GSM have a foothold.

Mr Wan Nor has asked for detailed answers to questions about the project's history; short- and long-term project management strategy; projected benefits to taxpayers and consumers; the project's economic impact; the market potential of CDMA technology; why the CAT chose to lease instead of investing in infrastructure itself; why it picked only one company; and the credibility of the company form a legal and investment standpoint.

The CDMA project is the biggest mobile phone venture proposed by the state enterprise to the government. But the speed with which it was approved by the CAT board and the constraints of the technology itself have raised questions about the project's viability.

CAT management took less than three months to review the proposal by SBP Holding to construct a CDMA network in the provinces and lease it to the CAT.

The CAT board spent a mere two hours deliberating before giving the CAT the green light, emphasising the "trust" factor between the project partners. The lease-back proposal was considered the sweetener in the deal for the CAT.