5. Assets used in operations

5.1 Main Assets

Land, Buildings and improvements, and leasehold building improvements
are mainly possessed by the Company because the Company has many
branches all over the country. Furniture, fixtures and office equipment
shall consist of tools and equipment, hardware, computer software
including equipment used in the provision of value added services for
mobile phone.

As at 31 December 2007, the main assets of the Company and its
subsidiaries are as follows:

Million Baht

+--------------------------+--------------------+---------------------+
|                          | Estimated Used     | As at 31 December   |
|                          | Period (years)     | 2007                |
+--------------------------+--------------------+---------------------+
| Property, Plant and      |                    |                     |
| Equipment                |                    |                     |
+--------------------------+--------------------+---------------------+
| Land                     | -                  | 1.07                |
+--------------------------+--------------------+---------------------+
| Buildings and            | 5 and 20           | 520.86              |
| improvements             |                    |                     |
+--------------------------+--------------------+---------------------+
| Leasehold building       | 5 and 10           | 831.92              |
| improvements             |                    |                     |
+--------------------------+--------------------+---------------------+
| Furniture, fixtures and  | 2-5                | 1,978.74            |
| office equipment         |                    |                     |
+--------------------------+--------------------+---------------------+
| Tools and Equipment      | 3 and 5            | 27,467.18           |
+--------------------------+--------------------+---------------------+
| Computer Software        | 10                 | 3,959.17            |
+--------------------------+--------------------+---------------------+
| Vehicles                 | 5                  | 237.68              |
+--------------------------+--------------------+---------------------+
| Assets under             | -                  | 498.67              |
| construction and         |                    |                     |
| installation             |                    |                     |
+--------------------------+--------------------+---------------------+
| Communication equipment  | duration of        | 25.85               |
| for rent                 | contract and 3     |                     |
+--------------------------+--------------------+---------------------+
| Total                    |                    | 35,521.14           |
+--------------------------+--------------------+---------------------+
| Less accumulate          |                    | (25,633.47)         |
| d                        |                    |                     |
| epreciation/amortization |                    |                     |
+--------------------------+--------------------+---------------------+
| Net Book value           |                    | 9,887.67            |
+--------------------------+--------------------+---------------------+

  The Company and its subsidiaries include the financial leases value
  Baht 59.47 million in furniture, fixtures and equipment, tools,
  equipments and vehicles

  As at the end of December 2007 the Company and its subsidiaries also
  rent office spaces to run the business as follows:

  1. The Company has leased office space from SC Office Park Co., Ltd.
  for a total of 13,978 square meters at 414 Shinawatra Tower 1,
  Phaholyothin Road, Phayathai, Bangkok. The lease agreement shall be
  executed every 1 year, and the current agreement has started from 1
  January 2007 to 31 December 2007, at the rental fee of Baht 5,834,774
  per month and the contract will be automatically continued after the
  end of the contract except that the Company will cancel the contract
  30 days before the contract is end. At present the Company has been in
  the contract for 10 years.

  2. The Company and its subsidiaries rent office space from SC Office
  Park Co., Ltd. totaling of 14,798 square metres at 1291/1 Shinawatra
  Tower 2, Phaholyothin Road, Phayathai, Bangkok. The rental agreement
  is done every 1 years, and the current contract has started from 1
  January 2007 to 31 December 2007, and the Company and its subsidiaries
  pay rental fee of Baht 6,516,951 a month and the contract will be
  automatically continued after the end of the contract except that the
  Company and its subsidiaries will cancel the contract 30 days before
  the contract is end. At present the Company and its subsidiaries have
  been in the contract for 10 years.

  3. The Company and its subsidiaries rent office space from SC Asset
  Corporation totaling of 2,801 square metres at 1010 Shinawatra Tower
  3, Vibhavadi-Rangsit Road, Chatuchak, Bangkok. The rental agreement is
  done every 3 years, and the existing contract will be end at 14
  November 2009, and the Company and its subsidiaries pay rental fee of
  Baht 1,132,144 a month and the contract will be automatically
  continued after the end of the contract except that the Company and
  its subsidiaries will cancel the contract 30 days before the contract
  is end.

  4. The Company and its subsidiaries rent office space from ESV Asset
  Co.,Ltd, totaling of 6,763 square metres at 1 ESV Tower, Phaholyothin
  9, Phayathai, Bangkok. The existing contract will be end at 28
  February 2010, and the Company and its subsidiaries pay rental fee of
  Baht 1,436,476 a month. The contract will be continued when the
  Company and its subsidiaries notify to extend the contract six month
  before the contract is end.

  5. The Company and its subsidiaries rent office space from Phahol 8
  Company Ltd., Thai-German Ceramic Industry PCL., Siam Real Estate
  Development Co., Ltd, Juristics Person Phaholyothin Place Building,
  Ayudhya Asset Management Co., Ltd, Logthai Properties Co., Ltd,
  Nathawut and Karn Co.,Ltd, Chiraruk Chamlongsupalak, Mr.Gavin
  Thaibunchakit, Pantip Network Co.,Ltd. and Kaset Thanasarn Co.,Ltd.
  totaling of 16,350 square metres at 408 Phaholyothin Place, Phayathai,
  Bangkok. The contract is done separately by each floor. The current
  contract is end at 14 November 2009 and the Company and its
  subsidiaries pay rental fee of Baht 4,256,304 a month. The contract
  will be continued when the Company and its subsidiaries give notice to
  extend the contract 30 days or 60 days before the contract is end,
  depending on each contract.

  6. The Company and its subsidiaries rent office space from Three Pals
  Co., Ltd. totaling of 5,287 square metres at 404 Phaholyothin Center,
  Phayathai, Bangkok. The current contract is end at 31 December 2011
  and the Company and its subsidiaries pay rental fee of Baht 1,171,380
  a month. The contract will be continued when the Company and its
  subsidiaries inform to extend the contract 30 days or 60 days before
  the contract is end, depending on each contract.

  7. The Company rents some spaces for branch offices totaling of 18,065
  square metres at Chiang Mai, Surattanee, Nakhon Sawan, Nakhon
  Ratchasima, Nakhon Pathom, Phitsanulok, Hat Yai, Chon Buri, Ayutthaya,
  Rayong, Phuket, Krabi, Udonthani, Khon Kaen and Bangkok The contract
  is done separately by each province and the rental fee total of Baht
  9,328,318 a month.

5.2 Concession Agreement

Investment costs of the cellular network of the company and its
subsidiaries are the main items under the concession agreement and have
to be transferred to the concession grantor. The Company and its
subsidiaries have the rights to operate assets under concession
agreement as long as the end of the concession agreement. The concession
agreement of the Company and its subsidiaries is made with TOT and CAT,
so the Company and its subsidiaries have the concession rights to run
the business under the concession agreement.

  Assets under concession agreement as at 31 December 2007 as follows:

+----------------------+---------+--------------+----------+---------+
| Asset type           | Cost    | Useful Life  | Year to  | Net     |
|                      |         | of           | be       | book    |
|                      | (       | Amortisation | a        | value   |
|                      | Million |              | mortised |         |
|                      | Baht)   |              |          | (       |
|                      |         |              |          | Million |
|                      |         |              |          | Baht)   |
+----------------------+---------+--------------+----------+---------+
| Capital Investment   |         |              |          |         |
| of company           |         |              |          |         |
+----------------------+---------+--------------+----------+---------+
| Digital Network      | 99      | 10 years not | 1 – 10   | 47      |
| Equipment - GSM      | ,631.81 | over 2015    |          | ,477.77 |
+----------------------+---------+--------------+----------+---------+
| Analogue Network     | 13      | End          | 1 – 10   | -       |
| Equipment - NMT      | ,735.31 | September    |          |         |
|                      |         | 2002         |          |         |
+----------------------+---------+--------------+----------+---------+
| Transmission         | 21      | 10 years not | 1 – 10   | 8       |
| Equipment            | ,753.19 | over 2015    |          | ,441.61 |
+----------------------+---------+--------------+----------+---------+
| Others               | 24      | 10 years not | 1 – 10   | 17      |
|                      | ,830.97 | over 2015    |          | ,525.75 |
+----------------------+---------+--------------+----------+---------+
| Capital Investment   |         |              |          |         |
| of ADC               |         |              |          |         |
+----------------------+---------+--------------+----------+---------+
| Tools and Equipment  | 1       | 10           | 1 – 10   | 395.56  |
|                      | ,537.60 |              |          |         |
+----------------------+---------+--------------+----------+---------+
| Total                | 161     |              |          | 73      |
|                      | ,488.88 |              |          | ,840.69 |
+----------------------+---------+--------------+----------+---------+
| Capital Investment   |         |              |          |         |
| of DPC               |         |              |          |         |
+----------------------+---------+--------------+----------+---------+
| Digital Network      | 14      | 10 years not | 1 - 9    | 4       |
| Equipment – GSM and  | ,489.02 | over 2013    |          | ,686.62 |
| Transmission         |         |              |          |         |
| equipment            |         |              |          |         |
+----------------------+---------+--------------+----------+---------+
| Total Capital        | 175     |              |          | 78      |
| Investment of the    | ,977.90 |              |          | ,527.31 |
| company and its      |         |              |          |         |
| subsidiaries         |         |              |          |         |
+----------------------+---------+--------------+----------+---------+

Main concession agreements and licenses of the Company and its
subsidiaries are as follows: (Detail of concession agreements is in
attachment 3.)

(1) Advanced Info Service Public Company Limited

  Concession agreement for operating cellular mobile telephone service

+----------------+---+--------------------------------------------------+
| Contractor     | : | The Telephone Organization of Thailand (TOT)     |
|                |   |                                                  |
|                |   | Advanced Info Service Public Company Limited     |
+----------------+---+--------------------------------------------------+
| Contract       | : | 25 Years (1 October 1990 - 30 September 2015)    |
| Period         |   |                                                  |
+----------------+---+--------------------------------------------------+
| Type of        | : | 1. The Company has been granted under            |
| Contract       |   | Build-Transfer-Operate contract to operate a     |
|                |   | nationwide NMT and GSM 900 MHz cellular network  |
|                |   | and has agreed to share the benefit to TOT in    |
|                |   | term of revenue sharing at the contract rate.    |
|                |   |                                                  |
|                |   | 2. The Company has been granted from TOT to      |
|                |   | manage the benefit from the network equipment    |
|                |   | transmission and media network by sharing the    |
|                |   | benefit to TOT at the agreement rate.            |
|                |   |                                                  |
|                |   | 3. The Company shares a total of 20% (Include    |
|                |   | VAT) of its prepaid revenue to TOT.              |
+----------------+---+--------------------------------------------------+
| Contract       | : | TOT has a right to cancel the contract           |
| Cancellation   |   | immediately when the Company goes bankrupt or    |
|                |   | breaches any terms of the contract, in case that |
|                |   | the Company is unable to remedy within 90 days   |
|                |   | after having received written notification. The  |
|                |   | Company will not have the right to get the       |
|                |   | assets back and refund from TOT.                 |
+----------------+---+--------------------------------------------------+

  Memorandum for concession agreement for operating cellular mobile
  telephone service at 27 March 1990 (No.1st)

+----------------+---+--------------------------------------------------+
| Contractor     | : | The Telephone Organization of Thailand (TOT)     |
|                |   |                                                  |
|                |   | Advanced Info Service Company Limited            |
+----------------+---+--------------------------------------------------+
| Contract Date  | : | 11 December 1991                                 |
+----------------+---+--------------------------------------------------+
| Additional     | : | In an event that AIS must lease area for         |
| Clause         |   | installation of tools and equipments from        |
|                |   | others, AIS must lease in TOT’s name. Each lease |
|                |   | period shall be not less than 3 years and renew  |
|                |   | until it reaches 22 years. AIS shall be fully    |
|                |   | responsible for any damage and damages caused by |
|                |   | moving to another leased area.                   |
+----------------+---+--------------------------------------------------+

  Memorandum for concession agreement for operating cellular mobile
  telephone service at 27 March 1990 (No.2nd)

+----------------+---+--------------------------------------------------+
| Contractor     | : | The Telephone Organization of Thailand (TOT)     |
|                |   |                                                  |
|                |   | Advanced Info Service Company Limited            |
+----------------+---+--------------------------------------------------+
| Contract Date  | : | 16 April 1993                                    |
+----------------+---+--------------------------------------------------+
| Additional     | : | From Advanced Info Service Company Limited       |
| Clause         |   |                                                  |
|                |   | To Advanced Info Service Public Company Limited  |
+----------------+---+--------------------------------------------------+

  Memorandum for concession agreement for operating cellular mobile
  telephone service at 27 March 1990 (No.3rd)

+----------------+---+--------------------------------------------------+
| Contractor     | : | The Telephone Organization of Thailand (TOT)     |
|                |   |                                                  |
|                |   | Advanced Info Service Company Limited            |
+----------------+---+--------------------------------------------------+
| Contract Date  | : | 28 November 1994                                 |
+----------------+---+--------------------------------------------------+
| Additional     | : | 1. TOT agrees to share revenue with AIS only for |
| Clauses        |   | the International Direct Dialing Service (IDD)   |
|                |   | from AIS Subscribers as follows:                 |
|                |   |                                                  |
|                |   | 1.1 IDD to unconnected-border countries: TOT     |
|                |   | shares its monthly revenue to AIS for THB3 per   |
|                |   | minute; and                                      |
|                |   |                                                  |
|                |   | 1.2 IDD to connected-border countries: TOT       |
|                |   | shares its monthly revenue to AIS for THB3 per   |
|                |   | minute. AIS is required to issue an invoice to   |
|                |   | and collect payment from its subscribers on      |
|                |   | behalf of TOT.                                   |
|                |   |                                                  |
|                |   | 2. The above revenues must be included and       |
|                |   | calculated as per annum revenue to be paid to    |
|                |   | TOT .                                            |
|                |   |                                                  |
|                |   | 3. AIS agrees to waive its revenue during 1      |
|                |   | October 1990-30 September 1994, which was        |
|                |   | collected and paid to TOT, to be included and    |
|                |   | calculated as per annum revenue to be paid to    |
|                |   | TOT.                                             |
+----------------+---+--------------------------------------------------+

  Memorandum for concession agreement for operating cellular mobile
  telephone service at 27 March 1990 (No.4th)

+----------------+---+--------------------------------------------------+
| Contractor     | : | The Telephone Organization of Thailand (TOT)     |
|                |   |                                                  |
|                |   | Advanced Info Service Company Limited            |
+----------------+---+--------------------------------------------------+
| Contract Date  | : | 20 September 1996                                |
+----------------+---+--------------------------------------------------+
| Additional     | : | 1. Extend the Contract Period from 20 years to   |
| Clauses        |   | 25 years from first operation date.              |
|                |   |                                                  |
|                |   | 2. AIS has the right to build transmission       |
|                |   | networks in all conductors to interconnect with  |
|                |   | TOT’s networks and other networks. The newly     |
|                |   | built transmission networks must be transferred  |
|                |   | to TOT but AIS is entitled to maintain and       |
|                |   | manage those networks.                           |
|                |   |                                                  |
|                |   | 3. AIS has the right to use, possess and         |
|                |   | maintain transmission networks and other assets  |
|                |   | acquired by AIS free of charge.                  |
|                |   |                                                  |
|                |   | 4. TOT has the right to exploit the unused       |
|                |   | transmission networks under AIS management.      |
|                |   |                                                  |
|                |   | 5. In cases where others or TOT use special      |
|                |   | services via such networks, AIS is entitled to   |
|                |   | exploitation as agreed with TOT.                 |
|                |   |                                                  |
|                |   | 6. AIS no longer has exclusive right to provide  |
|                |   | mobile cellular services.                        |
|                |   |                                                  |
|                |   | 7. AIS can provide IDD service directly through  |
|                |   | CAT’s networks on the condition that TOT shall   |
|                |   | not gain less per annum revenue.                 |
|                |   |                                                  |
|                |   | 8. Cancelled section 4.3 in the memorandum       |
|                |   | No.3^(rd) and that TOT shall share its revenue   |
|                |   | earned from international call at the rate of 3  |
|                |   | Baht/minute to AIS                               |
|                |   |                                                  |
|                |   | 9. AIS shall pay 30 percent of per annum revenue |
|                |   | to TOT for the year 25-30 before expenses and    |
|                |   | taxes deduction. AIS is entitled to reduce or    |
|                |   | waive service fee according to its promotions.   |
|                |   |                                                  |
|                |   | 10. Any changes or updates of networks’          |
|                |   | technology shall be done by AIS at its own       |
|                |   | expense. TOT shall own any changes or updates of |
|                |   | such networks including any related assets.      |
+----------------+---+--------------------------------------------------+

  Memorandum for concession agreement for operating cellular mobile
  telephone service at 27 March 1990 (No.5th)

+----------------+---+--------------------------------------------------+
| Contractor     | : | The Telephone Organization of Thailand (TOT)     |
|                |   |                                                  |
|                |   | Advanced Info Service Company Limited            |
+----------------+---+--------------------------------------------------+
| Contract Date  | : | 25 December 2000                                 |
+----------------+---+--------------------------------------------------+
| Additional     | : | 1. AIS is exploitation co-management.            |
| Clauses        |   |                                                  |
|                |   | 2. AIS collects service fee from subscribers and |
|                |   | deliver to TOT                                   |
|                |   |                                                  |
|                |   | 3. Per annum revenue before Value Added Tax      |
|                |   | (VAT) Ratio are as follows:                      |
|                |   |                                                  |
|                |   | 3.1 TOT’s subscribers: AIS acquires 75 percent   |
|                |   | and TOT acquires 25 percent; and                 |
|                |   |                                                  |
|                |   | 3.2 AIS’s subscribers: AIS acquires 78 percent   |
|                |   | and TOT acquires 22 percent.                     |
|                |   |                                                  |
|                |   | 4. AIS must coordinate with TOT on marketing     |
|                |   | project and must not carry out any marketing     |
|                |   | plans which will take hold of TOT’s subscribers. |
|                |   |                                                  |
|                |   | 5. AIS must produce and execute signal conductor |
|                |   | lease agreement with all subscribers and monthly |
|                |   | report to TOT for inspection.                    |
+----------------+---+--------------------------------------------------+

  Memorandum for concession agreement for operating cellular mobile
  telephone service at 27 March 1990 (No.6th)

+----------------+---+--------------------------------------------------+
| Contractor     | : | The Telephone Organization of Thailand (TOT)     |
|                |   |                                                  |
|                |   | Advanced Info Service Company Limited            |
+----------------+---+--------------------------------------------------+
| Contract Date  | : | 15 May 2001                                      |
+----------------+---+--------------------------------------------------+
| Additional     | : | Pre-Paid cellular mobile service                 |
| Clause         |   |                                                  |
|                |   | 1. AIS agrees to pay 20 percent of value on      |
|                |   | scratch cards sold monthly (VAT included) to TOT |
|                |   | by the date 15 next month.                       |
|                |   |                                                  |
|                |   | 2. During year 11-15 under the main concession   |
|                |   | agreement, AIS must reduce the service fee, to   |
|                |   | be collected from its subscribers in year 11, to |
|                |   | its subscribers not less than 5 percent in       |
|                |   | average annually. During year 16-25 under the    |
|                |   | main concession agreement, AIS must reduce the   |
|                |   | service fee, to be collected from its            |
|                |   | subscribers in year 11, to its subscribers not   |
|                |   | less than 10 percent in average annually.        |
+----------------+---+--------------------------------------------------+

  Memorandum for concession agreement for operating cellular mobile
  telephone service at 27 March 1990 (No.7th)

+----------------+---+-------------------------------------------------+
| Contractor     | : | Advanced Info Service Public Company Limited    |
|                |   |                                                 |
|                |   | TOT Corporation Public Company Limited (TOT)    |
+----------------+---+-------------------------------------------------+
| Contract date  | : | 20 September 2002                               |
+----------------+---+-------------------------------------------------+
| Additional     | : | 1. TOT permits the Company to allow other       |
| Clauses        |   | operators to access the AIS’s network, and the  |
|                |   | Company is able to use the roaming service from |
|                |   | other operators as well.                        |
|                |   |                                                 |
|                |   | 2. The Company is able to charge other          |
|                |   | operators entering the AIS’s network at the     |
|                |   | rate not exceeding Baht 3 per minute, and the   |
|                |   | company is charged by other operators from the  |
|                |   | roaming service at the rate not exceeding Baht  |
|                |   | 3 per minute either. But the company needs to   |
|                |   | inform TOT by the correspondence.               |
|                |   |                                                 |
|                |   | 3. The Company agrees to share a benefit from   |
|                |   | the roaming service to TOT.                     |
|                |   |                                                 |
|                |   | - In case of other operators roaming with AIS’s |
|                |   | network, the Company has to share the benefit   |
|                |   | at the rate (identified by the main contract)   |
|                |   | of service revenue charged from other           |
|                |   | operators.                                      |
|                |   |                                                 |
|                |   | - In case of the Company roaming with other     |
|                |   | operators’ network, the Company has to share    |
|                |   | the benefit at the rate (identified by the main |
|                |   | contract) of service revenue and other revenue  |
|                |   | charged from other operators after deducting    |
|                |   | the roaming payment to other operators.         |
+----------------+---+-------------------------------------------------+

Memorandum of National Roaming agreement

+----------------+---+-------------------------------------------------+
| Contractor     | : | Advanced Info Service Public Company Limited    |
|                |   |                                                 |
|                |   | Digital Phone Company Limited                   |
+----------------+---+-------------------------------------------------+
| Contract date  | : | 1 November 2002                                 |
+----------------+---+-------------------------------------------------+
| Roaming Detail | : | 1.  To increase the efficiency of mobile        |
|                |   |     service to customers of both contractors,   |
|                |   |     DPC has been able to roam AIS’s network all |
|                |   |     over the country since 1 October 2002, and  |
|                |   |     after 1 November 2002 the company has been  |
|                |   |     able to roam DPC’s network too.             |
|                |   |                                                 |
|                |   | 2.  Both contractors have agreed to pay roaming |
|                |   |     fee at the rate of Baht 2.10 per            |
|                |   |     minute(excluded vat).                       |
+----------------+---+-------------------------------------------------+

Internet License Type 1 No NTC/MM/INT/ISP/I/025/2550

+-----------------+---+-------------------------------------------------+
| Grantor         | : | The National Telecommunications Commission      |
|                 |   | (“NTC”)                                         |
+-----------------+---+-------------------------------------------------+
| Grant Period    | : | 23 November 2007 – 22 November 2008             |
|                 |   |                                                 |
|                 |   | (License is subjected to renewal every year)    |
+-----------------+---+-------------------------------------------------+
| License Details | : | AIS provides internet services to its customers |
|                 |   | without having its own telecommunication        |
|                 |   | network. ADC is obligated to pay for the        |
|                 |   | license fee within the time period as per       |
|                 |   | specified by the NTC.                           |
+-----------------+---+-------------------------------------------------+
| Withdrawal of   | : | NTC has sole power to withdraw the license if   |
| License         |   | appears that AIS breaches or does not comply    |
|                 |   | with the Telecommunication Business Act B.E.    |
|                 |   | 2544 (2001), Rules or Regulations issued by the |
|                 |   | NTC, or fails to remedy within the specified    |
|                 |   | period.                                         |
+-----------------+---+-------------------------------------------------+

  (2) Advanced Data Network Communication Company Limited ( ADC )

  Operating contract for non voice service by Data Kit Virtual Circuit
  Switch

+-----------------+---+-------------------------------------------------+
| Contractor      | : | TOT Corporation Public Company Limited (TOT)    |
|                 |   |                                                 |
|                 |   | Advanced Data Network Communication Company     |
|                 |   | Limited                                         |
+-----------------+---+-------------------------------------------------+
| Contract Period | : | 25 Years (25 September 1997 - 24 September      |
|                 |   | 2022)                                           |
+-----------------+---+-------------------------------------------------+
| Type of         | : | ADC has a permit to operate non voice service   |
| Contract        |   | by Frame Relay system, Data Kit Virtual Circuit |
|                 |   | Switch and/or other communication systems to    |
|                 |   | transfer data from point to point and from      |
|                 |   | point to multipoint. The company has obliged to |
|                 |   | pay the benefit to TOT by increasing registered |
|                 |   | capital shares from Baht 350 million to Baht    |
|                 |   | 457.52 million. ADC issued authorized capital   |
|                 |   | shares Baht 107.52 million which is equal to    |
|                 |   | 23.5 % of total registered capital shares. TOT  |
|                 |   | did not need to pay for those shares.           |
+-----------------+---+-------------------------------------------------+
| Contract        | : | TOT has an authorization to cancel the contract |
| Cancellation    |   | and power to give the contract to other         |
|                 |   | operators if TOT believes that ADC is unable to |
|                 |   | run the contract successfully or even breaks    |
|                 |   | one of any rule. Besides, ADC has a             |
|                 |   | responsibility to absorb cost and expense for   |
|                 |   | TOT ,and all related assets will be transferred |
|                 |   | to TOT. ADC has no rights to cancel the         |
|                 |   | contract except the occurring of unexpected     |
|                 |   | situation which affects on ADC to run the       |
|                 |   | contract properly.                              |
+-----------------+---+-------------------------------------------------+

Internet License Type 1 No NTC/MN/INT/ISP/I/022/2548

+-----------------+---+-------------------------------------------------+
| Grantor         | : | The National Telecommunications Commission      |
|                 |   | (“NTC”)                                         |
+-----------------+---+-------------------------------------------------+
| Grant Period    | : | 19 December 2005-18 December 2006               |
|                 |   |                                                 |
|                 |   | (License is subjected to renewal every year)    |
+-----------------+---+-------------------------------------------------+
| License Details | : | ADC provides internet services to its customers |
|                 |   | without having its own telecommunication        |
|                 |   | network. ADC is obligated to pay for the        |
|                 |   | license fee within the time period as per       |
|                 |   | specified by the NTC.                           |
+-----------------+---+-------------------------------------------------+
| Withdrawal of   | : | NTC has sole power to withdraw the license if   |
| License         |   | appears that ADC breaches or does not comply    |
|                 |   | with the Telecommunication Business Act B.E.    |
|                 |   | 2544 (2001), Rules or Regulations issued by the |
|                 |   | NTC, or fails to remedy within the specified    |
|                 |   | period.                                         |
+-----------------+---+-------------------------------------------------+

Internet International Gateway License Type 2 No. NTC/INT/II/002/2549

  ----------------- --- -------------------------------------------------
  Grantor           :   The National Telecommunications Commission
                        (“NTC”)

  Grant Period      :   8 December 2006 - 7 December 2011

  License Details   :   ADC provides internet international gateway
                        services, interconnection center between domestic
                        internet network to international internet
                        network, internet exchange to its particular
                        customers with having its own telecommunication
                        network. ADC is obligated to pay for the license
                        fee within the period as specified by the NTC.

  Withdrawal of     :   NTC has sole power to withdraw the license if
  License               appears that ADC violates or does not comply with
                        the Telecommunication Business Act B.E. 2544
                        (2001), Rules or Regulations issued by the NTC,
                        or fails to remedy within the specified period.
  ----------------- --- -------------------------------------------------

  (3) Digital Phone Company Limited

  Related operating network contracts of DPC are as follows:

  Transferred right contract and obligation by the contract to operation

+----------------+---+--------------------------------------------------+
| Contractor     | : | Communication Authority of Thailand Public       |
|                |   | Company Limited (CAT)                            |
|                |   |                                                  |
|                |   | Total Access Communication Public Company        |
|                |   | Limited (TAC)                                    |
|                |   |                                                  |
|                |   | Digital Phone Company Limited (DPC)              |
+----------------+---+--------------------------------------------------+
| Contract Date  | : | 19 November 1996                                 |
+----------------+---+--------------------------------------------------+
| Type of        | : | TAC accepted to transfer the partial of right    |
| Contract       |   | and obligation of assignment agreement of        |
|                |   | Cellular System Radio Telecommunication Services |
|                |   | between CAT and TAC to DPC which was authorized  |
|                |   | by CAT.                                          |
+----------------+---+--------------------------------------------------+

  Operating contract for cellular system radio telecommunication service
  Digital PCN (Personal Communication Network) 1800

+----------------+---+--------------------------------------------------+
| Contractor     | : | Communication Authority of Thailand Public       |
|                |   | Company Limited (CAT)                            |
|                |   |                                                  |
|                |   | Digital Phone Company Limited (DPC)              |
+----------------+---+--------------------------------------------------+
| Contract       | : | 16 Years (28 May 1997 – 15 September 2013)       |
| Period         |   |                                                  |
+----------------+---+--------------------------------------------------+
| Type of        | : | DPC has been granted from CAT to operate a       |
| Contract       |   | nationwide 1800MHz cellular network which was    |
|                |   | undertaken from TAC. DPC shares the benefit to   |
|                |   | CAT at the identified rate of its revenue before |
|                |   | deducting expense, tax and fee from operating    |
|                |   | expense. Besides, total benefit should not less  |
|                |   | than the committed amount for the duration.      |
+----------------+---+--------------------------------------------------+
| Contract       | : | Contract will be end when the followings are     |
| Cancellation   |   | occurred.                                        |
|                |   |                                                  |
|                |   | - The contract is due.                           |
|                |   |                                                  |
|                |   | - CAT can cancel the contract if DPC does not    |
|                |   | comply with or breaches any rule which would     |
|                |   | cause damage to CAT, and DPC does not remedy     |
|                |   | within 90 days after having received the notice. |
|                |   |                                                  |
|                |   | -By mutual agreement.                            |
|                |   |                                                  |
|                |   | -DPC goes bankrupt.                              |
|                |   |                                                  |
|                |   | -When DPC is disqualified under the business law |
|                |   | in case of operating by foreigner, and CAT has   |
|                |   | to give a notice to DPC at least 90 days.        |
+----------------+---+--------------------------------------------------+

  Memorandum for concession agreement for operating Digital PCN
  (Personal Communication Network) 1800 service at 26 August 1999
  (No.1st)

+----------------+---+-------------------------------------------------+
| Contractor     | : | Communication Authority of Thailand Public      |
|                |   | Company Limited (CAT)                           |
|                |   |                                                 |
|                |   | Digital Phone Company Limited (DPC)             |
+----------------+---+-------------------------------------------------+
| Contract Date  | : | 26 August 1999                                  |
+----------------+---+-------------------------------------------------+
| Effective Date | : | 30 June 1999                                    |
+----------------+---+-------------------------------------------------+
| Contract       | : | CAT agrees to adjust revenue sharing for DPC to |
| Details        |   | be on the same term as the contract between CAT |
|                |   | and Total Access Communication (TAC) on the     |
|                |   | ground that DPC contract is transferred from    |
|                |   | the the original TAC contract with CAT. The     |
|                |   | revision of revenue sharing is as follow.       |
|                |   |                                                 |
|                |   | 1. Adjust revenue share for year 1 to 25%, year |
|                |   | 2-9 to 20%, year 10-14 to 25%, year 15-16 to    |
|                |   | 30%                                             |
|                |   |                                                 |
|                |   | 2. DPC shall pay the minimum revenue share to   |
|                |   | CAT of no less than 5.4 billion Baht, increased |
|                |   | from the original amount of 3.6 billion Baht.   |
+----------------+---+-------------------------------------------------+

  (4) Advanced Magic Card Co., Ltd. (“AMC”)

Electronic Card Business License No 006/2548

  ----------------- --- -------------------------------------------------
  Grantor           :   Ministry of Finance (“MOF”)

  Grant Period      :   since 20 July 2005

  License Details   :   AMC is granted to operate in electronic money
                        cards for goods or services payments instead of
                        cash payments.

  Withdrawal of     :   MOF has sole power to withdraw the license if it
  License               appears that AMP breaches or does not comply with
                        the business conditions specified by MOF and the
                        Bank of Thailand, or operates its business or has
                        financial status which might likely to cause
                        great damage to general public and fails to
                        improve its financial status or remedy its
                        business operation within the specified period.
  ----------------- --- -------------------------------------------------

(5) Advanced MPay Co., Ltd. (“AMP”)

    Electronic Card Business License No 003/2548

  ----------------- --- -------------------------------------------------
  Grantor           :   Ministry of Finance (“MOF”)

  Grant Period      :   since 24 June 2005

  License Details   :   AMP is granted to operate in electronic money
                        cards for goods or services payments instead of
                        cash payments.

  Withdrawal of     :   MOF has sole power to withdraw the license if it
  License               appears that AMP breaches or does not comply with
                        the business conditions specified by MOF and the
                        Bank of Thailand, or operates its business or has
                        financial status which might likely to cause
                        great damage to general public and fails to
                        improve its financial status or remedy its
                        business operation within the specified period
  ----------------- --- -------------------------------------------------

(6) AIN GlobalComm Co., Ltd. (“AIN”)

    Telecommunications Business License Type 3 No 3Kor/49/002

  ----------------- --- -------------------------------------------------
  Grantor           :   The National Telecommunications Commission
                        (“NTC”)

  Grant Period      :   26 July 2006-25 July 2026

  License Details   :   AIN provides international telephone services,
                        value added services to international telephone
                        service, related services to international
                        telephone service and international telephone
                        network services. AIN is obligated to pay for the
                        license and any fees within the time period as
                        specified by the NTC.

  Withdrawal of     :   NTC has sole power to withdraw the license if
  License               appears that AIN breaches or does not comply with
                        the Telecommunication Business Act B.E. 2544
                        (2001), Rules or Regulations issued by the NTC,
                        or fails to remedy within the specified period.
  ----------------- --- -------------------------------------------------

(7) Super Broadband Co., Ltd. (“SBN”)

    Internet License Type 1 No NTC/MM/INT/ISP/I/022/2550

+-----------------+---+-------------------------------------------------+
| Grantor         | : | The National Telecommunications Commission      |
|                 |   | (“NTC”)                                         |
+-----------------+---+-------------------------------------------------+
| Grant Period    | : | 10 October 2007- 9 October 2008                 |
|                 |   |                                                 |
|                 |   | (License is subjected to renewal every year)    |
+-----------------+---+-------------------------------------------------+
| License Details | : | SBN provides internet services to its customers |
|                 |   | without having its own telecommunication        |
|                 |   | network. SBN is obligated to pay for the        |
|                 |   | license fee within the time period as specified |
|                 |   | by the NTC.                                     |
+-----------------+---+-------------------------------------------------+
| Withdrawal of   | : | NTC has sole power to withdraw the license if   |
| License         |   | it appears that SBN breaches or does not comply |
|                 |   | with the Telecommunication Business Act B.E.    |
|                 |   | 2544 (2001), Rules or Regulations issued by the |
|                 |   | NTC, or fails to remedy within the specified    |
|                 |   | period.                                         |
+-----------------+---+-------------------------------------------------+

International Internet Gateway License Type 2 No NTC/INT/II/008/2550

  ----------------- --- -------------------------------------------------
  Grantor           :   The National Telecommunications Commission
                        (“NTC”)

  Grant Period      :   15 October 2007- 14 October 2012

  License Details   :   SBN provides international internet services,
                        provide international gateway for domestic
                        internet service provider, internet exchange
                        service with having its own telecommunication
                        network. SBN shall provide limited service to
                        particular group of customers. SBN is obligated
                        to pay for the license fee within the time period
                        as specified by the NTC.

  Withdrawal of     :   NTC has sole power to withdraw the license if
  License               appears that SBN breaches or does not comply with
                        the Telecommunication Business Act B.E. 2544
                        (2001), Rules or Regulations issued by the NTC,
                        or fails to remedy within the specified period.
  ----------------- --- -------------------------------------------------

Telecommunications Business License Type 3 No 3Kor/50/006

  ----------------- --- -------------------------------------------------
  Grantor           :   The National Telecommunications Commission
                        (“NTC”)

  Grant Period      :   16 August 2007- 15 August 2027

  License Details   :   SBN provides telecommunication network services
                        with its own network for fixed line, ISDN, data
                        service, and value-added service. SBN is
                        obligated to pay for the license and any fees
                        within the time period as specified by the NTC.

  Withdrawal of     :   NTC has sole power to withdraw the license if
  License               appears that SBN breaches or does not comply with
                        the Telecommunication Business Act B.E. 2544
                        (2001), Rules or Regulations issued by the NTC,
                        or fails to remedy within the specified period.
  ----------------- --- -------------------------------------------------

5.3 Investment and Management Policy for subsidiaries and associates

AIS seeks to invest in the telecommunication business and other related
businesses with the consideration to favorable return on investment or
complementary and/or supplementary to the company’s core business in the
long term. The company intends to maintain its shareholding and
management in these subsidiaries by appointing its representative
directors to the board of directors of all subsidiaries, except for the
Mobile From Advance Co., Ltd, which has ceased its operation since
December 2002. This business is currently undertaken by Wireless Device
Supply Co., Ltd. In addition, Data Line Thai has ceased its operation as
its license has expired since January 2007, and it has registered of its
cessation with the Ministry of Commerce on 29 November 2007, currently
on a process of liquidation.

As of December 2007, AIS invested in 12 subsidiaries as follows;

1)  Digital Phone Co., Ltd. (DPC)

2)  Advanced Data Network Communications Co., Ltd. (ADC)

3)  Advanced Contact Center Co., Ltd. (ACC)

4)  Data Network Solutions Co., Ltd. (DNS)

5)  Data Line Thai Co., Ltd. (DLT)

6)  Mobile From Advance Co., Ltd. (MFA)

7)  Advanced MPAY Co., Ltd. (AMP)

8)  Advanced Magic Card Co., Ltd. (AMC)

9)  AIN GlobalComm Co., Ltd. (AIN)

10) Super Broadband Network Co., Ltd. (SBN)

11) Wireless Device Supply Co., Ltd. (WDS)

12) Advanced Wireless Network Co., Ltd. (AWN)