Rushing Into 3G Not In Public Interest

[webfact]

EXCLUSIVE INTERVIEW

Rushing into 3G 'not in public interest'

By Nophakhun Limsamarnphun,

Jintana Panyaarvudh,

Kornchanok Raksaseri

The Nation

Published on November 4, 2009

Rushing into 3G 'not in public interest'

Korbsak says licences could cost TOT, CAT a pile in lost revenue

Korbsak

Deputy premier Korbsak Sabhavasu expressed concern yesterday that the public would not get maximum benefit from the introduction of 3G telecom services planned by the Information and Communications Technology Ministry.

The ICT Ministry will put a proposal to the Council of Economic Ministers today concerning impacts from 3G telecom licences on state-owned TOT and CAT, whose revenues are likely to drop sharply once the 3G licences are issued.

One study cited by Korbsak in an exclusive interview with The Nation showed the state would get less revenue after issuing 3G licences due to a proposed change in benefits paid to the government.

Based on the National Telecommunication Commission (NTC) plan, state-owned TOT and CAT will be affected in terms of revenue, as current telecom concessions will be converted into licences.

Under the concession deals, telecom firms pay 25 per cent of their revenue to the state, which was due to collect an estimated total of Bt300 billion towards end of the concessions.

But if operators manage to move their customers to the new 3G with the choice of number portability, then they will pay only 6 per cent of revenue, which is a big decline from the current contracts.

"It would be unfair to the public if licences are given too cheaply at the expense of over 60 million people, as only some 200,000 people use mobile phones [with 3G capacity].

"On the other hand, I don't think it's bad for the public if we can get high bid prices for 3G licences [even though some critics have suggested such a huge cost would be passed on to consumers]. The fee for end-users would eventually be based on international and market rates. I heard a licence will cost Bt10 billion.

"I also wonder why we should issue four licences in one go as we have three telecom operators right now. Too many licences may hinder competition. In fact, there could be as many as five 3G licences if the one for TOT is also counted.

"One solution might be that the four licences are distributed (handed out) for a set price.

"In my opinion, there is no need to hurry this 3G policy. We will still be fine without it, as such a hurry could cause damage in terms of public interest. We can wait. 3G is good for mobility but otherwise it's not necessary and we can also upgrade Edge," he said.

Korbsak also voiced concern about changes made to telecom concession deals by the Thaksin Shinawatra government, which the Council of State considered illegal, but no action had been taken to remedy them.

"I don't want such a hurry for 3G while these problems have yet to be solved. I'm not sure if it's the NTC's duty to take charge," he said.

-- The Nation 2009/11/04

[frenchFARANGbkk]

3G in Thailand? Is it a dream?

[Nowhereman60]

No need to Rush?????????? Sure everyone else has it now, why rush now............

[gotlost]

Lets wait for 4G and I want more money!

[kalbo123]

There are only 200000 people with phone's that have 3g capacity... could that be because there is no 3g available?

What a nonsense!

[apetley]

Is he just totally ignorant or is there some hidden agenda to delay the introduction?

I really want to know as it is amazing that such short sightedness can exist these days.

Thailands neighbours must be finding it hard not to laugh out loud being given such a head start by people like this.

[gotlost]

There are only 200000 people with phone's that have 3g capacity... could that be because there is no 3g available?

What a nonsense!

They are in Bangkok at 30,000 baht a pop. But what about the INTERNET I'm already on AIS 3G in CM.

[tartempion]

Oh, I just remember Thailand did not want to conform to WTO on VOIP issues by 2000, they simply delayed to nominate the NTC members for political reasons, thus they could not make any decisions in due time and kept VOIP in the hands of CAT and TOT way into the first decade of this new era.

Delaying 3G in turn is normal procedure in this backwards running country

[jayjayjayjay]

When are we going to be spared of this idiot!

[MJo]

Not in public interest.... Maybe not in his personal interest....

Might be reply to the statement issued by GSMA and NTC last week...

Article published in Cellular News last week

GSMA Supports Thai Government's Move to Open 3G Auction

­The GSM Association has welcomed and supported the Thai Government initiative to license the 2100MHz spectrum band for 3G Mobile Broadband. The GSMA urged the government to proceed with the license auction without delay.

At a seminar endorsed by the National Telecommunications Commission (NTC), the GSMA highlighted that Thailand will gain significant economic and social benefits through this new wave of investment in mobile infrastructure. Based on calculations by LECG, a global economic consultancy, annual industry investment of US$1 billion per year could mean annual GDP gains of US$2.3 billion and nearly 80,000 jobs per year over the period of 2010-2014. The LECG report also highlights that the upcoming 2100MHz spectrum license offers Thailand a significant opportunity to encourage further investment and competition in the mobile telecommunications sector. A well-designed and transparent spectrum auction process is likely to generate the most efficient use of scarce spectrum.

"The GSMA believes that any further delays and changes in the licensing programme would affect the country's credibility, increase uncertainty and the risk perception associated to it. This would in turn reduce the chance of receiving the investments that are vital to the Thai economy to recover from global recession," said Sebastian Cabello, Regulatory Manager, GSMA. "The impact of Mobile Broadband technologies in emerging markets is transformative and will play a crucial role in narrowing the "digital divide" in broadband between developed nations and nations like Thailand."

A recent World Bank econometrics analysis of 120 countries estimated that for every 10-percentage-point increase in the penetration of broadband services, there is an increase in economic growth of 1.3 percentage points (Qiang 2009). This growth effect of broadband is even stronger in developing countries than in developed economies. In Thailand, in particular, investing in advanced mobile networks would boost its incipient software applications and local content industries, increasing enterprise connectivity and enabling greater mobility across its territory.

"Although 65.3 million Thai citizens have access to mobiles today, only 1.8 million enjoy broadband services, which highlights that the population is desperately in need of broadband access, a need that may be addressed through investment in 3G networks if they have any hope catching up with neighboring countries," said Cabello. LECG estimates the annual consumer benefit from the introduction of 3G services in Thailand will exceed US$1 billion per year by 2014, contingent on a clear policy framework that promotes open and fair competition for all players.

Posted to the site on 1st November 2009

[Scott]

Well, it seems they have learned their lesson. They opened up the mobile phone market and now look what has happened to the telegraph!

They'll never make that mistake again.

[grantbkk]

Should there not be a price to pay for 5 years of inaction? Because of the weak IT infrastructure companies are eliminating Thailand from their global business plans. Broadband here is a joke! Any attempt to roll out 3G will fail until the government secures revenue schemes for certain corrupt politicians. The government is again trying to justify its ineptitude with rambling excuses geared for their constituency. No one can really believe that by arresting modern technology and withholding it from the public for personal gain is nothing more than corruption.

[KhunDave]

A quite shocking display of short-sightedness.

[Losangels]

Get rid of TOT and CAT and we'll get 3G here in this country

[Gary A]

Apparently the corrupt politicians still have not figured out how to get their monthly divvy from the wannabe operators. The 4G system is right around the corner and this IT hub called Thailand hasn't moved up to 3G.

[bkkjames]

Apparently the corrupt politicians still have not figured out how to get their monthly divvy from the wannabe operators. The 4G system is right around the corner and this IT hub called Thailand hasn't moved up to 3G.

Maybe if we delay it enough we can become the hub of indecision.

[Arkady]

Unbelievable that this character can be allowed to get away with such imbecilic comments to the media. Of course, just looking at the narrow interests of the two grossly inefficient state enterprises, where politicians always have their noses at the trough, it is a great idea to continue the foot dragging as long as possible. On the other hand the way the state enterprises were made gatekeepers and rent collectors of the mobile phone concessions in the first place was not in the interests of the people of Thailand and guaranteed price gouging, corruption and general inefficency from the beginning. Now there is a big opportunity to correct that with 3G.

Since economic growth equals productivity gains times growth of the workforce and the workforce is not growing very fast how is Thailand going to achieve economic growth, while the people are deliberately denied new technology that generates productity gains? In addition commerce is denied the opportunity to benefit from sales of the new technology. The greatest benefit would surely come from 3G's ability to provide broadband connectivety to the the vast majority of the Thai population that is without it. He should be looking to break up TOT and CAT's franchises further, especially CAT's stranglehold on the international Internet gateway that slows all traffic to a snail's pace, not perpetuate the rot. Anyway 4G is already being rolled out in some states in the US.

This guy is the overseas educated second generation product of an upcountry political family of Chinese origin that made it big from construction of US bases around Pattaya. His father, Pramual Subhavasu, who made a big fuss about being given the finance portfolio in the Chatichai government (because it had always been held by technocrats before and it was thought unprofitable by politicians but, in the event, there was a little issue of new foreign banking licenses that Japanese banks wanted really badly that made the ministry more interesting). was famous for coming out with left of field statements that stunned reporters. It seems the acorn never falls very far from the tree. I would have thought the Democrats could have done a lot better but then they are .... well Thai politicians after all.

[animatic]

The model cement in a 7/11 bag dropped regularly in the Air con system

has worked it's wonders, and ALL logic is now erased from MCOT.. sniff, sniff.

Common boys breath deeply of the rarefied air in your ivory tower...

No rush to gain 1.3 percent of economic advancement,

when the pols can't also make 13 percent personal economic advancement

to allow it to happen. Perils of transparent government?

[jayjayjayjay]

Should there not be a price to pay for 5 years of inaction? Because of the weak IT infrastructure companies are eliminating Thailand from their global business plans. Broadband here is a joke! Any attempt to roll out 3G will fail until the government secures revenue schemes for certain corrupt politicians. The government is again trying to justify its ineptitude with rambling excuses geared for their constituency. No one can really believe that by arresting modern technology and withholding it from the public for personal gain is nothing more than corruption.

This is why it is necessary and this "yellow idiot" should be bound up and shot at Preah Vihear Temple. Westerned managed listed companies will be the infrastructure developers, if it don't work, nobody will use it, unlike the big government strategy "this idiot" constantly promotes.

off topic but on topic~ animatic, you know my stance against PAD, if not pro RED, I am at least pro business and development. When you cheer so loudly for democracy you've got to look deep into the political games behind the rot. It is for this very reason I think PAD is a group of idealistic fringe dwellers without the ability to make decent policies or manage to say the least a chicken farm. This guys is supposed to be one of your heros!!!!!!!!!!!

Edited November 4, 2009 by jayjayjayjay

[Samuian]

Should there not be a price to pay for 5 years of inaction? Because of the weak IT infrastructure companies are eliminating Thailand from their global business plans. Broadband here is a joke! Any attempt to roll out 3G will fail until the government secures revenue schemes for certain corrupt politicians. The government is again trying to justify its ineptitude with rambling excuses geared for their constituency. No one can really believe that by arresting modern technology and withholding it from the public for personal gain is nothing more than corruption.

This is why it is necessary and this "yellow idiot" should be bound up and shot at Preah Vihear Temple. Westerned managed listed companies will be the infrastructure developers, if it don't work, nobody will use it, unlike the big government strategy "this idiot" constantly promotes.

off topic but on topic~ animatic, you know my stance against PAD, if not pro RED, I am at least pro business and development. When you cheer so loudly for democracy you've got to look deep into the political games behind the rot. It is for this very reason I think PAD is a group of idealistic fringe dwellers without the ability to make decent policies or manage to say the least a chicken farm. This guys is supposed to be one of your heros!!!!!!!!!!!

Well sorry, but it seems you are under the delusion that Mr.Korbsak, the "yellow idiot" (very bad rant, man!) , is the one who"makes all this up"... are you so shortsighted?

What has Praeh Vihar to do with 3G, CAT and TOT?

after all it's TiT , we'll see... soon enough!

... besides I have doubts that this interview was made in english - but translated...

However, isn't TRUE already selling 3G iPhones?

edited to add:

"korbsak also voiced concern about changes made to telecom concession deals by the Thaksin Shinawatra government, which the Council of State considered illegal, but no action had been taken to remedy them.

"I don't want such a hurry for 3G while these problems have yet to be solved."

quoted form OP..

Edited November 4, 2009 by Samuian

[Hardback]

"Too many licences may hinder competition"

HUH?

I thought more licenses meant more competition.

I guess I just don't understand his culture.

[RubbaJohnny]

Reason Siamphore sorry semipoor never really telgraphed here was they couldn't join the dots

I think more chance of return to the Aldiss lamp or Ali G than 4G

Who needs CAT and licences?

Snouts in trough what a surprise.

Great thing living in atech backwater all the smart expats will leave for singapore Souel etc leavin a contented dichotomy

(hardcore of whoremongers wit their own board STD)

and Bhuddists altrusits and brainybloggas

Edited November 4, 2009 by RubbaJohnny

[tominbkk]

I heard 4G is being readied to roll out in the West. Thailand just keeps getting farther and farther behind.....

[BangnaBound]

Until Thailand gets the international gateway issue solved, I’m all for holding back on 3G. What’s the point of adding more subscribers to the current inadequate bandwidth?

[Project504naha]

3G in Thailand? Is it a dream?

3G in Thailand......................hahahahahahahaha...............................aha

hahahahahahahahahahaha

[bkkjames]

I heard 4G is being readied to roll out in the West. Thailand just keeps getting farther and farther behind.....

Don't say it too loudly or some official will take credit for not rolling out 3G as 4G is already on the horizon.

[meom]

No need to Rush?????????? Sure everyone else has it now, why rush now............

Everyone?

Worlwide there’s about 300 billion mobile phone subscribers out of which 200 million had 3g as of June 2007. Two years later for sure there are more but nowhere near everyone. Maybe 20% worldwide.

[Yoshitaka]

Is it true that Cambodia already have 3G?

Can anyone confirm? Please.

[MaiChai]

This kind of backward bumbling would never happen in Singapore, Malaysia, etc. How does revenues for CAT help the people? If CAT was running everything we would still be using the telegraph! It has been PROVEN that mobile companies competeing against each other offer value for consumers and accelerate the adaption of technology. Not beauocratic backward governement departments!

[skippybangkok]

EXCLUSIVE INTERVIEW

Rushing into 3G 'not in public interest'

By Nophakhun Limsamarnphun,

Jintana Panyaarvudh,

Kornchanok Raksaseri

The Nation

Published on November 4, 2009

Rushing into 3G 'not in public interest'

Korbsak says licences could cost TOT, CAT a pile in lost revenue

Korbsak

Deputy premier Korbsak Sabhavasu expressed concern yesterday that the public would not get maximum benefit from the introduction of 3G telecom services planned by the Information and Communications Technology Ministry.

The ICT Ministry will put a proposal to the Council of Economic Ministers today concerning impacts from 3G telecom licences on state-owned TOT and CAT, whose revenues are likely to drop sharply once the 3G licences are issued.

One study cited by Korbsak in an exclusive interview with The Nation showed the state would get less revenue after issuing 3G licences due to a proposed change in benefits paid to the government.

Based on the National Telecommunication Commission (NTC) plan, state-owned TOT and CAT will be affected in terms of revenue, as current telecom concessions will be converted into licences.

Under the concession deals, telecom firms pay 25 per cent of their revenue to the state, which was due to collect an estimated total of Bt300 billion towards end of the concessions.

But if operators manage to move their customers to the new 3G with the choice of number portability, then they will pay only 6 per cent of revenue, which is a big decline from the current contracts.

"It would be unfair to the public if licences are given too cheaply at the expense of over 60 million people, as only some 200,000 people use mobile phones [with 3G capacity].

"On the other hand, I don't think it's bad for the public if we can get high bid prices for 3G licences [even though some critics have suggested such a huge cost would be passed on to consumers]. The fee for end-users would eventually be based on international and market rates. I heard a licence will cost Bt10 billion.

"I also wonder why we should issue four licences in one go as we have three telecom operators right now. Too many licences may hinder competition. In fact, there could be as many as five 3G licences if the one for TOT is also counted.

"One solution might be that the four licences are distributed (handed out) for a set price.

"In my opinion, there is no need to hurry this 3G policy. We will still be fine without it, as such a hurry could cause damage in terms of public interest. We can wait. 3G is good for mobility but otherwise it's not necessary and we can also upgrade Edge," he said.

Korbsak also voiced concern about changes made to telecom concession deals by the Thaksin Shinawatra government, which the Council of State considered illegal, but no action had been taken to remedy them.

"I don't want such a hurry for 3G while these problems have yet to be solved. I'm not sure if it's the NTC's duty to take charge," he said.

-- The Nation 2009/11/04

Quite simple,

From what i remember they were 4x more staff per fixed line than the private operators ( True / TT& T). If you strip out concession fees, they actually make a loss.

So if i were him, would be advocating that this should be canned. He should change the word from "public" to TOT / CAT, and then the text makes sense

Edited November 5, 2009 by skippybangkok