Thai Govt Eyeing 2G, 3G Licence Transition

[webfact]

Govt eyeing 2G, 3G licence transition

By USANEE MONGKOLPORN

THE NATION

Korn keen to ensure state benefits as concessions are ended, licences sold

While the government has vowed to create a level playing field in the telecom industry this year by terminating private concessions, the national regulator is trying to avoid getting caught up in this complicated issue in case it derails its 3G spectrum licensing plan.

Finance Minister Korn Chatikavanij said yesterday he wants to see complete termination of the private telecom concessions in order for concession holders to obtain 15-year licences from the National Telecom-munications Commission (NTC) within the year, to promote a fair and competitive telecom industry between 2G players and 3G players.

The move also aims to ensure smooth granting of the NTC's 3G spectrum licence in a way that the state interests are not affected. Korn admitted the plan's success depended on support from all involved parties, from private telecom operators to the NTC.

NTC commissioner Natee Sukonrat said the watchdog welcomed talks with the government, but the NTC should avoid being drawn deeply into this complicated issue because of concerns it might cause the NTC to delay its plan to auction the 3G licences in September.

He said it was better for the government to finish talking with private concession holders first on the concession termination, and give final details to the NTC later. The NTC was willing to grant 2G licences for them.

He also questioned if terminating the concessions to get the 2G licences meant the government wanted to give the telecom operators another 15 years to hold on to the 2G spectrums, as in his view they should be taken back for re-allocation for other uses.

He questioned if the government could finish the concession termination quickly, saying it might be hard for officials and operators to reach satisfactory agreement on the details.

The NTC is expected to publish the final licensing draft plan in the Royal Gazette this month.

It wants to hasten auction of the licences in September before the terms of its three commissioners run out in that month.

If the plan is delayed, the authority of the four commissioners still in their posts at that time to grant the licences could be challenged.

Korn still believes the government and the NTC can work together on the matter.

The Finance Ministry will submit an outline of concession termination to the economic ministers' council today.

Among the highlights are:

 The Finance and ICT ministries will set up a joint committee to steer concession termination and finish the termination details in 100 days;

 Termination of the 2G private telecom concessions and concession holders getting their licences. Then 2G licence holders will pay 12.5 per cent of annual revenue as a licence fee. They might also have to pay an upfront fee for the concession termination, dependent on their concession terms, customer numbers, and frequency use.

The Finance Ministry has already recommended the NTC increase the 3G annual licence fee from the present 6 per cent to 12.5 per cent, as well as create a level playing-field among the 2G and 3G players.

But Korn said the figure of 12.5 per cent was just a model figure and he would talk to the NTC about finalising it.

He will first discuss what would be an additional fee of 6.5 per cent on the 3G licence if the NTC agreed to raise the licence fee to 12.5 per cent.

Korn said one option was for the additional fee might be determined as a spectrum fee.

Korn added that the 12.5 per cent figure was based on an assumption the government would not lose benefits from the 3G licensing.

He said the government did not oppose the NTC's 3G licence auction but wanted to make sure the licensing would create fair competition in the industry between the 2G and 3G players.

"We don't oppose the 3G licensing and we want to see it happening," Korn said.

The NTC is expected to raise at least Bt40 billion from the auction of the three licences. It will transfer all proceeds from the auction to state coffers.

Korn said after the termination of the TOT and CAT Telecom concessions, both could still seek revenue from their networks by leasing them to companies to provide the service on a retail basis.

-- The Nation 2010-07-19

[webfact]

Cabinet agrees to cancel 2G cellular lease

BANGKOK (NNT) -- The Economic Cabinet meeting on Monday has resolved to terminate the 2G cellular lease.

According to Finance Minister, Korn Chatikavanich, a proposal of the 2nd Model Scheme by the Ministry of Information and Communication Technology (MICT) for the operation of the 2G cellular networks under the Act of Private Participation in State Undertakings, B.E. 2535 (1992) will be canceled. The Ministry of Finance and MICT have been assigned to proceed with the resolutions.

Meanwhile, the Cabinet has also delayed the process to issue 3G licenses, which ICT Minister Juti Krairiksh has been tasked to follow up with the resolutions and inform the cabinet within one month.

The 2G contract, however, can only be terminated by mutual consents, Mr Korn said.

-- NNT 2010-07-19

[Rucharee]

Cabinet agrees to cancel 2G cellular lease

BANGKOK (NNT) -- The Economic Cabinet meeting on Monday has resolved to terminate the 2G cellular lease.

According to Finance Minister, Korn Chatikavanich, a proposal of the 2nd Model Scheme by the Ministry of Information and Communication Technology (MICT) for the operation of the 2G cellular networks under the Act of Private Participation in State Undertakings, B.E. 2535 (1992) will be canceled. The Ministry of Finance and MICT have been assigned to proceed with the resolutions.

Meanwhile, the Cabinet has also delayed the process to issue 3G licenses, which ICT Minister Juti Krairiksh has been tasked to follow up with the resolutions and inform the cabinet within one month.

The 2G contract, however, can only be terminated by mutual consents, Mr Korn said.

-- NNT 2010-07-19

This is to completely kill off Shin, AIS, Thaksin, Temasek, Yinluck, etc.

Edited July 19, 2010 by Rucharee

[Jimi007]

Huh, I wonder why they have been talking about 3G for years and nothing ever happens. Could this be the reason: "The Finance Ministry has already recommended the NTC increase the 3G annual licence fee from the present 6 per cent to 12.5 per cent, as well as create a level playing-field among the 2G and 3G players." The Finance Ministry owns TOT (Telephone Of Thailand) and CAT possibly the largest Internet Service Provider in Thailand. Plus they need the current contracts holders of 2G to terminate their contracts "by mutual consents, Mr Korn said."

To quote two other recent articles: "The Finance Ministry owns 100 per cent of TOT and CAT Telecom. It is working out the details of the concession conversion plan. One option isto covert the existing private telecom concessions under TOT and CAT into NTC licences with 15 year terms, the same term as for the 3G licence. It wants to see the conversion completed before the NTC grants the 3G licences. Many parties have said that the 3G licences will financially affect TOT and CAT by paving the way for private concession holders that obtain 3G licences to migrate customers from the high regulatory cost concessions to the lower regulatory cost licences.The overall licence cost will account for 6 per cent of the licence holders' annual revenue, while the concession fee costs private concession holders around 25 per cent of their annual revenue."

The National Telecommunications Commission (NTC) on Wednesdayordered all mobile-phone operators July 14 not to charge different rates forcalls within ("on-net") and outside ("off-net") their ownnetworks. Mobile-phone operators have launched on-net rate promotionsfeaturing lower call charges than the off-net rate, to encourage their users tomake calls within their own providers' networks. This is to avoid paying thelarge interconnection fee between different networks.NTC regulations require the caller's network to pay the interconnection fee to the network of the call recipient. The more an operator's subscribers call different networks, the more it has to pay ininterconnection fees."

Why bother, why doesn't the Finance Ministry just own and run all telecommunications in Thailand. It sure looks like they want to... Or at least make the most they can out of it. At this rate when will there ever be 4G here?

Edited July 19, 2010 by Jimi007

[Rucharee]

Huh, I wonder why they have been talking about 3G for years and nothing ever happens. Could this be the reason: "The Finance Ministry has already recommended the NTC increase the 3G annual licence fee from the present 6 per cent to 12.5 per cent, as well as create a level playing-field among the 2G and 3G players." The Finance Ministry owns TOT (Telephone Of Thailand) and CAT possibly the largest Internet Service Provider in Thailand. Plus they need the current contracts holders of 2G to terminate their contracts "by mutual consents, Mr Korn said."

To quote two other recent articles: "The Finance Ministry owns 100 per cent of TOT and CAT Telecom. It is working out the details of the concession conversion plan. One option isto covert the existing private telecom concessions under TOT and CAT into NTC licences with 15 year terms, the same term as for the 3G licence. It wants to see the conversion completed before the NTC grants the 3G licences. Many parties have said that the 3G licences will financially affect TOT and CAT by paving the way for private concession holders that obtain 3G licences to migrate customers from the high regulatory cost concessions to the lower regulatory cost licences.The overall licence cost will account for 6 per cent of the licence holders' annual revenue, while the concession fee costs private concession holders around 25 per cent of their annual revenue."

The National Telecommunications Commission (NTC) on Wednesdayordered all mobile-phone operators July 14 not to charge different rates forcalls within ("on-net") and outside ("off-net") their ownnetworks. Mobile-phone operators have launched on-net rate promotionsfeaturing lower call charges than the off-net rate, to encourage their users tomake calls within their own providers' networks. This is to avoid paying thelarge interconnection fee between different networks.NTC regulations require the caller's network to pay the interconnection fee to the network of the call recipient. The more an operator's subscribers call different networks, the more it has to pay ininterconnection fees."

Why bother, why doesn't the Finance Ministry just own and run all telecommunications in Thailand. It sure looks like they want to... Or at least make the most they can out of it. At this rate when will there ever be 4G here?

And in plain English?

I am confused.

[animatic]

I think this takes much of the BS out of the process and will force them to install 3G

and finally make the system move again. The old system was total grid lock and

this needs to be totally thrown out.

[Jimi007]

Huh, I wonder why they have been talking about 3G for years and nothing ever happens. Could this be the reason: "The Finance Ministry has already recommended the NTC increase the 3G annual licence fee from the present 6 per cent to 12.5 per cent, as well as create a level playing-field among the 2G and 3G players." The Finance Ministry owns TOT (Telephone Of Thailand) and CAT possibly the largest Internet Service Provider in Thailand. Plus they need the current contracts holders of 2G to terminate their contracts "by mutual consents, Mr Korn said."

To quote two other recent articles: "The Finance Ministry owns 100 per cent of TOT and CAT Telecom. It is working out the details of the concession conversion plan. One option isto covert the existing private telecom concessions under TOT and CAT into NTC licences with 15 year terms, the same term as for the 3G licence. It wants to see the conversion completed before the NTC grants the 3G licences. Many parties have said that the 3G licences will financially affect TOT and CAT by paving the way for private concession holders that obtain 3G licences to migrate customers from the high regulatory cost concessions to the lower regulatory cost licences.The overall licence cost will account for 6 per cent of the licence holders' annual revenue, while the concession fee costs private concession holders around 25 per cent of their annual revenue."

The National Telecommunications Commission (NTC) on Wednesdayordered all mobile-phone operators July 14 not to charge different rates forcalls within ("on-net") and outside ("off-net") their ownnetworks. Mobile-phone operators have launched on-net rate promotionsfeaturing lower call charges than the off-net rate, to encourage their users tomake calls within their own providers' networks. This is to avoid paying thelarge interconnection fee between different networks.NTC regulations require the caller's network to pay the interconnection fee to the network of the call recipient. The more an operator's subscribers call different networks, the more it has to pay ininterconnection fees."

Why bother, why doesn't the Finance Ministry just own and run all telecommunications in Thailand. It sure looks like they want to... Or at least make the most they can out of it. At this rate when will there ever be 4G here?

And in plain English?

I am confused.

It's all about money! The Finance Ministry wants more... In essence they want to increase our rates to call or use a G3 network. Another tax increase on the public.

[Rucharee]

Huh, I wonder why they have been talking about 3G for years and nothing ever happens. Could this be the reason: "The Finance Ministry has already recommended the NTC increase the 3G annual licence fee from the present 6 per cent to 12.5 per cent, as well as create a level playing-field among the 2G and 3G players." The Finance Ministry owns TOT (Telephone Of Thailand) and CAT possibly the largest Internet Service Provider in Thailand. Plus they need the current contracts holders of 2G to terminate their contracts "by mutual consents, Mr Korn said."

To quote two other recent articles: "The Finance Ministry owns 100 per cent of TOT and CAT Telecom. It is working out the details of the concession conversion plan. One option isto covert the existing private telecom concessions under TOT and CAT into NTC licences with 15 year terms, the same term as for the 3G licence. It wants to see the conversion completed before the NTC grants the 3G licences. Many parties have said that the 3G licences will financially affect TOT and CAT by paving the way for private concession holders that obtain 3G licences to migrate customers from the high regulatory cost concessions to the lower regulatory cost licences.The overall licence cost will account for 6 per cent of the licence holders' annual revenue, while the concession fee costs private concession holders around 25 per cent of their annual revenue."

The National Telecommunications Commission (NTC) on Wednesdayordered all mobile-phone operators July 14 not to charge different rates forcalls within ("on-net") and outside ("off-net") their ownnetworks. Mobile-phone operators have launched on-net rate promotionsfeaturing lower call charges than the off-net rate, to encourage their users tomake calls within their own providers' networks. This is to avoid paying thelarge interconnection fee between different networks.NTC regulations require the caller's network to pay the interconnection fee to the network of the call recipient. The more an operator's subscribers call different networks, the more it has to pay ininterconnection fees."

Why bother, why doesn't the Finance Ministry just own and run all telecommunications in Thailand. It sure looks like they want to... Or at least make the most they can out of it. At this rate when will there ever be 4G here?

And in plain English?

I am confused.

It's all about money! The Finance Ministry wants more... In essence they want to increase our rates to call or use a G3 network. Another tax increase on the public.

OK, I get it.

So what is wrong with paying more for a newer model/ technology.

Would you pay the same for a brand new toyota camry, and a 1999 model?

[Jimi007]

Huh, I wonder why they have been talking about 3G for years and nothing ever happens. Could this be the reason: "The Finance Ministry has already recommended the NTC increase the 3G annual licence fee from the present 6 per cent to 12.5 per cent, as well as create a level playing-field among the 2G and 3G players." The Finance Ministry owns TOT (Telephone Of Thailand) and CAT possibly the largest Internet Service Provider in Thailand. Plus they need the current contracts holders of 2G to terminate their contracts "by mutual consents, Mr Korn said."

To quote two other recent articles: "The Finance Ministry owns 100 per cent of TOT and CAT Telecom. It is working out the details of the concession conversion plan. One option isto covert the existing private telecom concessions under TOT and CAT into NTC licences with 15 year terms, the same term as for the 3G licence. It wants to see the conversion completed before the NTC grants the 3G licences. Many parties have said that the 3G licences will financially affect TOT and CAT by paving the way for private concession holders that obtain 3G licences to migrate customers from the high regulatory cost concessions to the lower regulatory cost licences.The overall licence cost will account for 6 per cent of the licence holders' annual revenue, while the concession fee costs private concession holders around 25 per cent of their annual revenue."

The National Telecommunications Commission (NTC) on Wednesdayordered all mobile-phone operators July 14 not to charge different rates forcalls within ("on-net") and outside ("off-net") their ownnetworks. Mobile-phone operators have launched on-net rate promotionsfeaturing lower call charges than the off-net rate, to encourage their users tomake calls within their own providers' networks. This is to avoid paying thelarge interconnection fee between different networks.NTC regulations require the caller's network to pay the interconnection fee to the network of the call recipient. The more an operator's subscribers call different networks, the more it has to pay ininterconnection fees."

Why bother, why doesn't the Finance Ministry just own and run all telecommunications in Thailand. It sure looks like they want to... Or at least make the most they can out of it. At this rate when will there ever be 4G here?

And in plain English?

I am confused.

It's all about money! The Finance Ministry wants more... In essence they want to increase our rates to call or use a G3 network. Another tax increase on the public.

OK, I get it.

So what is wrong with paying more for a newer model/ technology.

Would you pay the same for a brand new toyota camry, and a 1999 model?

It seems to me it will affect all users of mobile phones. I'm sure most Thai people could care less about 3G as they probably don't know what it is or want it. Do you think they put 3G nation wide? Wasn't there just another proposal to put a CDMA wireless internet network throughout the country as well? Maybe it should be all nationalized then, why bother with the auction of 3G at all as I said in my prior post.

[webfact]

UPDATE

PM wants NTC to back govt telecom plan

By Usanee Mongkolporn

The Nation

BANGKOK: -- Abhisit will meet watchdog tomorrow to seek agreement on termination of concessions and 2G/3G licensing

Prime Minister Abhisit Vejjajiva will seek help from the national regulator to create a level playing field for both 2G and 3G - second and third generation - telecom services.

A National Telecommunications Commission (NTC) source said the premier would hold a meeting with the watchdog tomorrow to discuss the issue.

This follows approval by the council of economic ministers yesterday of a Finance Ministry proposal to terminate mobile-phone concessions held by private operators so concession holders can obtain 2G licences from either the NTC or the upcoming National Broadcasting and Telecommunications Commission.

The move is an attempt by the government to promote fair competition in the industry under the same licensing conditions for all players.

The NTC board will also discuss the government's concession-termination plan tomorrow, according to commissioner Natee Sukonrat.

As part of the Finance Ministry's proposal to the economic ministers' meeting, the ICT and Finance ministries will set up a joint committee to finalise the concession-termination plan within 30 days, in order to keep pace with the NTC's plan to auction 3G licences in September.

The committee will also propose to the NTC the granting of an equal spectrum amount to each of the 2G licence holders, so that they each have sufficient bandwidth for their use without holding too many spectra.

The government has realised that it needs to get the NTC on board in order to successfully implement the plan. It is not the government, but the NTC, which has the authority to grant the 2G licences.

If the NTC allocates 3G licences before the government finishes the concession termination, it will be more difficult for the latter to convince concession holders to participate in the termination plan. This is because a 3G licence fee at 6 per cent of the licence holder's revenue is lower than the 12.5 per cent of the 2G licence fee proposed by the Finance Ministry in the concession-termination plan.

However, the NTC wants to move as quickly as possible to grant the 3G licences on schedule.

"If all the parties aren't able to collaborate fully, the concession termination plan might fail," Information and Communications Technology Minister Chuti Krairiksh said yesterday.

Abhisit reportedly asked at the economic ministers' meeting whether it was possible to request the NTC to delay the 3G auction schedule. He is also reported to have said that if this were not possible, it would be acceptable to keep to the current timing.

Chuti will chair the joint concession-termination committee made up of seven members, including representatives from the Finance Ministry, the ICT Ministry and the Council of State. The Council of

State is involved given legal aspects need to be taken into account when terminating the concessions.

Among the expected members are Rom Hiranpruk, Somkiat Tankitva-nit and Thaweesak Koranantakul - all ICT experts.

Chuti said the panel would make sure concession termination led to fair competition.

Moreover, he added that it would not invalidate the government's probe of some past concession amendments that allegedly breached the concessions.

Yesterday's meeting of economic ministers also decided that the government should support the NTC plan to grant 3G licences.

However, a telecom industrialist expressed doubt that concession termination could be implemented quickly, given its complicated nature and the involvement of many parties, and the question of whether the government had the authority to ask the NTC to give its full cooperation.

"It is a very challenging task for the government," he said.

The four mobile-phone concession holders are Advanced Info Service (AIS), Total Access Communication (DTAC), TrueMove and Digital Phone Co.

The share price of AIS closed at Bt86.75 per cent yesterday, up 0.6 per cent, while that of DTAC closed at Bt39, up 4.7 per cent. The price of True Corp, the parent of True Move, ended at Bt3.32, up 5.7 per cent.

The Finance Ministry wants to terminate the concessions before the NTC grants the 3G licences, or its wholly owned units TOT and CAT Telecom would be adversely affected by the licensing.

This is because incumbent telecom operators are likely to shift customers from the concessions to the 3G licences in order to save on regulatory costs, at the expense of TOT and CAT.

Mobile-phone operators have paid around 25 per cent of their revenue as concession fees, while the 3G licence fee will cost them 6 per cent.

-- The Nation 2010-07-20

[jayjay0]

I am thoroughly confused. I thought mankind now had 4G why are we talking about 2G and 3G.

Be kind to me I am tech challenged.

[webfact]

Loxley: 3G Available This Year

Loxley executive vice president said 3G technology will be officially made available to the public within the year.

Loxley plans to differentiate itself from the competition by presenting itself as the one true provider of 3G service with its new trademark.

Suroj Lamsa, executive vice president of Loxley, which is a current 3G frequency carrier on the TOT network, said the possibility of converting mobile phone concessions to pave the way for 3G licenses will ensure fairness for bidders and provide the maximum benefits to users. He expects 3G to be made officially available within the year.

In anticipation of the 3G frequency, Loxley will introduce its aircard under a new trademark called 'i-Kool Real 3G' in an effort to differentiate itself as the real provider of 3G technology as opposed to other major companies operating 3G systems on a trial basis.

Suroj said Loxley have about 10,000 existing customers and each pays an average 400 baht service fee every month.

They will be introducing new trademark and after-sales services via counter service, which is expected to increase the number of Loxley clients to 30,000 over the next eighteen months.

-- Tan Network 2010-07-20

[Rucharee]

UPDATE

PM wants NTC to back govt telecom plan

By Usanee Mongkolporn

The Nation

-- The Nation 2010-07-20

Is this an order from the PM to a supposedly independent organization?

[Phil Conners]

OK, I get it.

So what is wrong with paying more for a newer model/ technology.

Would you pay the same for a brand new toyota camry, and a 1999 model?

That's actually a very poor example. A Toyota Camry 2010 cost less in baht now than a Toyota Camry 1999 cost in 1999. Include general inflation and the cost now is considerably less.

Technology is getting bigger, better, faster and cheaper. That's just the way it is.

Edited July 20, 2010 by Phil Conners

[Rucharee]

Loxley: 3G Available This Year

Loxley executive vice president said 3G technology will be officially made available to the public within the year.

Loxley plans to differentiate itself from the competition by presenting itself as the one true provider of 3G service with its new trademark.

Suroj Lamsa, executive vice president of Loxley, which is a current 3G frequency carrier on the TOT network, said the possibility of converting mobile phone concessions to pave the way for 3G licenses will ensure fairness for bidders and provide the maximum benefits to users. He expects 3G to be made officially available within the year.

In anticipation of the 3G frequency, Loxley will introduce its aircard under a new trademark called 'i-Kool Real 3G' in an effort to differentiate itself as the real provider of 3G technology as opposed to other major companies operating 3G systems on a trial basis.

Suroj said Loxley have about 10,000 existing customers and each pays an average 400 baht service fee every month.

They will be introducing new trademark and after-sales services via counter service, which is expected to increase the number of Loxley clients to 30,000 over the next eighteen months.

-- Tan Network 2010-07-20

I think I am beginning to smell a rat here.

Please correct me if I am wrong.

So the FM want to revoke old concession given to the 3 operators (AIS, DTAC & TRUE)

And issue new one to LOXLEY (they will be the highest bidder I am sure, as they might have access to the sealed enveloped).

Than LOXEY will run all communications as a monopoly.

And who own Loxley? Maybe FM?

[webfact]

Cabinet Supports 2G Licensing

Cabinet has issued its support to a proposal by the Finance and ICT ministries to cancel all 2G mobile phone concessions and replace them with licenses.

3G concession, however, will be carried out in September.

-- Tan Network 2010-07-20

[Tokay]

I'm not going to even bother counting how many G's they claim to have or want, as I'm only interested in if it will work at all.

Good chance it won't.

[webfact]

topic continues here:

3G licensing in Thailand to go ahead

//CLOSED//