TOT, Thailand’s state-owned operator, is reportedly holding off from leasing unused spectrum to AIS – the country’s largest mobile operator – which would enable it to offer 4G.

According to the Bankgok Post, TOT is worried about falling foul of the law. The report highlights Section 46 of the Frequency Allocation Act (2010), which says spectrum can only be allocated via an auction.  The section also stipulates that spectrum owners must manage their own spectrum rights.

Citing TOT president Yongyuth Wattanasin, the Bankgok Post says the state-owned operator wants to think more carefully about entering into any agreement with AIS and “avoid any possible legal backlash in the future”.

TOT entered into an agreement in January with AIS to rent out 5MHz of unused spectrum, for one year, in the 2.1GHz frequency band.

Yongyuth said TOT’s legal team and 3G committee are looking into the contract details before submitting it to the board next month.

TOT’s president admitted that it would financially hurt the state-owned operator if AIS decided to scrap the contract, preferring instead to launch 4G on 1800MHz spectrum, which is scheduled to go under the hammer in August.