Telenor ASA (2010)
Notes to the financial statements /Telenor Group [extract]
19. Intangible assets [extract]
DTAC operates under a concession right to operate and deliver mobile services in Thailand granted by the Communication Authority of Thailand (“CAT”). CAT allows DTAC to arrange, expand, operate and provide the cellular system radio communication services in various areas in Thailand. The concession originally covered a 15-year period but the agreement was amended on 23 July 1993 and 22 November 1996, with the concession period being extended to 22 and 27 years, respectively. Accordingly, the concession period under the existing agreement expires in 2018.
Revenues generated by the new infrastructure will be determined under the terms of the original licence granted to the operator. However, in this case there is no pre-existing obligation to incur the cost of the extension work, meaning that it will only be recognised when the expenditure is made. Accordingly, that new cost is not an additional component of the cost of the original intangible asset but will be a new intangible asset in its own right, giving rise to new construction revenues and recognised using the same principles as the original as described at above.