Thailand Seeks Talks On Wireless Contracts

[Jai Dee]

Thailand seeks talks on wireless contracts

Thailand's government will "renegotiate" contracts of three mobile-phone providers, Advanced Info Service, Total Access Communication and True, after lawmakers said that their extended concessions had breached rules.

Thailand's Council of State, the government's legal advisory body, said that the mobile concessions had been extended and conditions had been changed by agencies without the required cabinet approval.

"We will need to renegotiate with them, but we will not cancel the concession contracts," the information minister, Sitthichai Pookaiyaudom, told a seminar in Bangkok on Monday. "We will set up two committees to renegotiate with all of them. It should take two to three months to reach conclusions. We want to get it done within this government."

Renegotiation may raise the revenue-sharing percentage, forcing Advanced Info, Thailand's biggest mobile-phone company, to pay the government more of its sales, according to Chirasit Vuttigrai, an analyst at DBS Vickers Securities. Chirasit lowered Advanced Info's shares to "hold" from "buy" and cut its 12-month stock price target by 13 percent in a client note sent before Sitthichai's comments.

The government wants to standardize the revenue-sharing agreements and concession lengths to create "more transparency" and a better "environment for investment," Sitthichai said.

Under the original concessions subsequently changed without cabinet endorsement, the three mobile companies should now be paying the government 30 percent of revenue, he said.

Advanced Info currently pays 20 percent, and Total Access and True each pay about 25 percent, according to Prasit Sujiravorakul, an analyst with Capital Nomura Securities in Bangkok.

"If possible, I want all the revised contracts to be equal, creating level fields to all players as they are not equal now," Sitthichai said. "I will not cancel and take over the contracts, even though we are authorized to do that. We don't want to create panic in the industry and interrupt the service."

Source: Bloomberg - 22 May 2007

[Jai Dee]

Government won’t cancel mobile phone concessions, says ICT minister

Thailand's Information and Communication Technology Minister Sitthichai Pokaiyaudom on Monday said the government would not cancel concessions given ealier to all mobile phone operators although the revisions to the concessions have been found improper and illegal.

The Council of State, which serves as a legal advisor to the government, ruled that mobile phone operators must comply with Royal Act on Private Participation in State Affairs (B.E. 2535) since their investment value exceeds one billion baht.

Speaking at a seminar on “In-depth Analysis of Turning Point of Investment in Thai Telecommunications,” he said all mobile phone operating concessions in Thailand needed to be renegotiated following the Council of State’s interpretation.

It is expected the renegotiation process would take around four to five months.

He said he had discussed the issue with Prime Minister Surayud Chulanont and shared in common the view that there would be no move to freeze or cancel the concessions given earlier, to avoid a disruption of the industry’s services, which could affect a large number of phone users.

He said he was confident that any adjustment to the concessions would neither cause damage to the state nor affect investments.

However, Mr. Sitthichai conceded he was concerned with the cabinet resolution because members have discretion to view it as they determine.

Should renegotiation produce a result that causes damages to the state, the cabinet might consider cancelling the concessions.

Supachai Chearavanont, president of True Corporation Plc, said he supported the government’s initiative because it could lead to the concession conversion and the liberalisation of the telecommunication industry.

He was confident the government would not cancel the concessions. But in the short run, new investment would not be made because investors were waiting for a clear direction.

Vichien Mektrakarn, president of Advanced Info Service Plc, said should the government want to change the concessions, it must regard a fair revenue sharing, equal concession period and just allocation of frequencies.

Thana Thien-artchariya, Senior Executive Vice President of Total Access Communication Co, said he agreed with the government’s initiative, but it must not be made on the assumption that it stems from the private sector’s fault.

Source: TNA - 22 May 2007

[Mid]

posted this one earlier ,

check under moving the goal posts ......................

just your friendly junta reinforcing the welcome to foreign investors .