UPDATE 1-Thai AIS fails to reach deal with Apple on iPhone

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BANGKOK Jan 9 (Reuters) - Advanced Info Service ADVA.BK, Thailand's largest mobile phone operator, said on Friday it had failed to reach agreement with Apple Inc (AAPL.O) to offer the 3G iPhone in the Thai market.

"We don't accept Apple's proposal to bring iPhone to the Thai market because we don't think it will be good for us in terms of business," Chief Executive Vikrom Sriprataks told reporters.

AIS's smaller rival, True Move PCL, a unit of True Corp <TRUE.BK,> plans to launch the 3G iPhone in Thailand from Jan. 16, making it the first operator to sell the new phone in the fast-growing market.

AIS, partly owned by Singapore Telecommunications Ltd (STEL.SI), was willing to renegotiate with Apple if the U.S. firm offered a new proposal, Vikrom said.

In July 2008 Apple rolled out the new iPhone, which offers faster Internet access and improved e-mail features, in more than 20 countries.

At 0830 GMT, AIS shares were down 0.66 percent at 75 baht, while the overall Thai stock market was 0.73 percent lower. Shares in True Corp, which owns 75.26 percent of True Move, were up 7.1 percent at 1.97 baht. (Reporting by Pisit Changplayngam; Writing by Khettiya Jittapong; Editing by Alan Raybould)