Foreign Companies Tired Of Thai Telecom Mess

[webfact]

Foreign Companies Tired of Thai Telecom Mess

Gregers Moller

Foreign companies operating in Thailand are loosing their patience with Thailands inability allow the implementation of new technology that is readily available in other parts of the world and even in countries usually considered behind Thailand in their development.The Joint Foreign Chambers of Commerce, an umbrella organisation for all the organisations for foreign companies opertating in Thailand, calls Thailand's mobile services "sub standard and expensive"."Artificially perpetuating an obsolete and damaging business structure for the temporary benefit of a few, hurts the many. We recommend planting the national flag on the industry as a whole (ie on a thriving, attractive, competitive sector) rather than on the dwindling fortunes of organizations which have not had the benefit of evolving with the changing environment," the JFCCT statement boldly states.

"Telecoms industri in handcuffs"

"There is nothing so different about Thailand which makes universal global experience inapplicable here. The only thing exceptional is that basic reforms of the telecoms industry were never put in place – the industry is handcuffed to a business model nearly 20 years old (concession-based) and does not even reflect what the legislated changes (about a decade old) contemplated."

"Development has been frustrated by vested interests and the lack of an overall vision. One essential part of these global norms is the evolution of the state-owned enterprises which were formerly government departments. They command power and influence. By now in all developed economies, as well as in most developing economies and many at a lesser stage of development than Thailand, the relevant SOEs have evolved through being corporatised, at least partially privatised, and in most cases restructured, refocused, relicensed by an independent regulator, and rearranged so that they are effective players in a multi-operator, competitive environment. This has typically occurred by the time of 3G introduction.

Thus 3G comes prematurely for Thailand, yet very late. Thailand had a plan (the SOEs were corporatised) but it stalled at that stage. It seems that the clearer the need for change, the more actively progress is blocked by narrowly-focused positions, seemingly promoted by those vested interests who may benefit from the status quo.

Concessions in Thailand were a tool to kick start mobile services. But they are now an anachronism and draft legislation contemplates evolution. They also prevent free and fair competition and support inefficient practices. The SOEs would be loss making without the concession revenues.

More problems

Thailand’s present telecoms structure will not support an effective 3G market. Recent examples of proposals which make further investment unattractive include:

• Proposals for the creation of new monopolies by way of mandated single network infrastructure and basic services supply from an SOE

• Multiple regulatory regimes for mobile services, with the need to separate 2G and 3G businesses, resulting in needless investment and operational complexities and inefficiencies..

• Misleading messages to the public about foreign dominance and national interests. (Laws which protect against predatory or anti-competitive business practices, and which prevent unfair market domination already exist. These apply to the telco industry just as they do to other industries.

With regard to expressed concerns about national security, standard due diligence procedures can address those issues in the context of normal commercial telecommunication services. All the existing 2G operators have, or have had, foreign partners which, along with their local investors, have contributed skills, capital, processes and technology to the market for the benefit of the Thai economy. This is a natural and positive effect of foreign investment and should be encouraged, not blocked. The sudden concern about foreign involvement may lead to the conclusion that the protection of vested interests is more important than economic development).

• Recent additional requirements such as return of 2G spectrum to the SOEs bring uncertainty to investments already made.

These terms are unattractive, especially at a time when the need to restore investor confidence is critical. We question why SOEs are getting involved in 3G at all. There is a good role as fixed line providers and network providers where network capacity and broadband services are provided to other players at cost-based rates.

JFCCT's recommendation

The government can, and should receive revenues for the use of frequency -- a public resource. But artificially perpetuating an obsolete and damaging business structure for the temporary benefit of a few, hurts the many. We recommend planting the national flag on the industry as a whole (ie on a thriving, attractive, competitive sector) rather than on the dwindling fortunes of organizations which have not had the benefit of evolving with the changing environment.

For 3G to be effective, the first step in structural reform is needed first – concession conversion whereby the SOEs would, on terms, transfer concession ownership to the Ministry of Finance. The JFCCT strongly recommends concession conversion first before 3G spectrum is issued, and that the unattractive and unworkable provisions in the 3G rules be removed.

www.jfcct.org/ict

source: scandasia.com

-- SCANDASIA

2010-07-29

[Piengrudee]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

[tingtongfarang]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

I think most farangs wonder why they are even talking about 3G, its out of date already and here they still talk about selling the licences.

[marquess]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

And that is perhaps the reason why most of Thailand's competitors already have 3G and are considering moving on to 4G, yet we don't even have 3G here. Myopic nationalist policies that help keep the rich in place and the poor in 'their' place! Keep peddling backwards you're bound to get there eventually!

[stuandchris]

Piengrudee's response is typical of what is holding Thailand back.

Like it or not it is now a global economy and communications is one of the prime factors for any company wishing to invest.

Thailand is one of the few remaining economies that wish to compete in the world and yet cannot abide any foreigner having a real say in the economy.

In most modern economies Germans cotrol electronics in other countires, Americans technology, Britain investment services etc etc. The world doesn't come to an end. Indeed countries that receive the investment benefit from tax revenue, employment, better health care etc.

It seems much more preferable to protect TOT etc as they are Thai. Whilst this continues whose fault will it be when the investment gains over the last thirty years start to evaporate?

Probably the nasty farang companies who provide jobs, pay taxes etc.

Still better to protect the few on the gravy train and keep falling behind the rest of Asia.

[RKASA]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

State enterprise is not the Thai people. The Thai people are the customers which pay 25% more so the company can make its extortion payments to ToT and CAT. State Enterprizes have been slowing progress for tens of years and doing anything about it has been a crime.

Defending ToT and CAT with worry about the Thai people is just Sondi propaganda put out for their own benefit and the truth of the matter has always been void.

AIS in 2008 paid ToT 19Billion baht and passed that cost on to every Thai that used the service. How is stopping or reducing that going to cause the Thai people to loose out. Loose out on what - higher prices and limited service.

[RedNIvar]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

Old man Piengrudee, it is time for you and your like to get with the program. All your so called backward neighbors have gone to 3G. Thailand is left behind, because you cannot figure out which corrupt politician will be able to line his pocket. BTW, for every dollar a farang earns in Thailand, up to 37% goes back to the government. Most Thai's I know try finding various loop holes to get out of paying taxes and all Farang's I know pay their taxes.

[gyruss71]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

I wonder why your posts are all against Farang. But I think I got the point... Just trolling, gotcha!

...or I really hope it for you...

[Maverell]

If Thailand wants to be a global player they have to accept that it is not all one way. They want farang money, but hate to give farang anything.

It has to change. If it doesn't then Thailand will fall even further behind the pack as the rest of developed Asia accelerates away. The only losers will be the Thai people.

This farce over telecoms is an example.

[Payboy]

Thailand is left behind

Doesnt really matter, as long as it is not behind Cambodia

Wait, no, must move quickly, Cambodia already has 3G!!!

[AmericanInExile]

But Thailand is still an IT "hub" isn't it?

[RedNIvar]

But Thailand is still an IT "hub" isn't it?

I'm not sure about that. I know that Malaysia and Singapore are more IT savvy. There is no tax for computer and all IT hardware especially in Malaysia. All the big IT companies have their bases there as well.

I do know that Thailand is a hub for bootleg software. If that qualifies it as an IT hub, then Yes.

[apetley]

But Thailand is still an IT "hub" isn't it?

No, just the 2G Hub.

[jybkk]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

I think most farangs wonder why they are even talking about 3G, its out of date already and here they still talk about selling the licences.

That's incorrect. 3G is anything but outdated.

4G standards are not finalized yet and only deployed experimentally in small zones, notably in Sweden.

You can't "skip" 3G because it is not meant to be replaced by 4G. Similarly, 3G did not replace 2G in the countries where it is deployed. Those are complementing network: 2G (gsm) is still used for calls and sms while 3G is used for internet. 4G will, for example bring the possibility of HD video streaming while roaming.

3G is shamefully late in Thailand but not too late. And the bright side is that once they finally obtain the 3G licenses (this is a licensing issue, not a technological or financial one) , operators will directly deploy the latest 3G revisions (usually called 3.5 and 3.9G and LTE) which will quickly make up for the delay.

[lynnnayko]

But Thailand is still an IT "hub" isn't it?

i don't think so.

[tajartale]

If there were ever entities that deserve to go out of business, it's TOT and CAT. But the idea that Thais can just show up for their paycheck, no matter how ridiculously bad they are at the job, seems so entrenched at this point, it's not just the fat cats that will fight privatization, but the unions as well. Same thing happening with the State Railway/Thai Airways/etc. It's not the 19th century anymore, but what to do when you have invested so little in education, huge sections of the population can't perform the skills that are needed?

Meanwhile, for the same price, your broadband speeds in Korea are up to 30x faster, even Cambodia has 3G, Vietnam is well on its way to highspeed rail while Thais watch the rice paddies dry up out the window and, incredibly, worry about having too _few_ people 'on the land' (pray tell, what are all these people supposed to be doing to make money on the land?).

If the PM wants to show what a smart boy he is, maybe try breaking the backs of these monopolies once and for all. Maybe try guaranteeing access to schools. Maybe try building new trains out to the Northeast (instead of to the beach, give me a break!). Or any number of things that would actually instill competition into the various monopolies across Amazingly still-functioning Thailand...

Other countries are doing these things instead of just talking about them. When will people here start to see?

[Piengrudee]

Thaksin try to benefit the phone users by dropping the cut taken by TOT & CAT for doing nothing. he was badly burned. Now, no one dare to touch TOT & CAT for that reason. Not even Mark or Korn. Else, double standard.

[Ned]

The less Thailand develops the cheaper the cost of living here......future hyperinflation not withstanding. The country continues in a race to the bottom as a cheap labour and environmentally hazardous product investment destination with places not dreamt of as competitors thirty years ago. Then it was an ambition to join the Tiger Economies of South Korea, Taiwan and Singapore. Now it's looking like a matter of survival in the near future on the same field as Cambodia, Vietnam and Bangladesh! There's hope yet for those farang struggling to survive here financially. It's never going to get too expensive to live here for most foreigners. That's good news isn't it?! No?!Yes?!

[slapout]

It is pretty sad state of affairs when we can see Thailand and countries like her, who have been exposed to western ideas and hardware for several centuries, but are still playing catch up in virtually every sector. Those farang who attempt to point out the inadequacies are called Thai/racist critics, or worse and when their own people mention the same, it is usually accompanied by an excuse, where no group/individual is blamed.

The real sad part is, once some idea or hardware is brought in, the continual improvement/upgrade/education, which is shown to work and be required will often be ignored or dismissed as not needed. It would seem several gold egg laying geese has come to Thailand over time, but sadly, they seem to have been killed for a snack.

[MAJIC]

Thaksin try to benefit the phone users by dropping the cut taken by TOT & CAT for doing nothing. he was badly burned. Now, no one dare to touch TOT & CAT for that reason. Not even Mark or Korn. Else, double standard.

All the Tax free profits he made from the sale of his telephone empire,wish I could get burned that badly.

[givenall]

But Thailand is still an IT "hub" isn't it?

I'm not sure about that. I know that Malaysia and Singapore are more IT savvy. There is no tax for computer and all IT hardware especially in Malaysia. All the big IT companies have their bases there as well.

I do know that Thailand is a hub for bootleg software. If that qualifies it as an IT hub, then Yes.

I have lost hope for Thailand to be a player in the globalized world. We can start to see Thailand continue to fall back and it is getting worse faster and faster

[dumball]

The large companies should pull out and then see where Thailand is for Thai gets them .

I remember when Quebec Canada used to pull that kind of shit , thought Canada was nothing without them and demanding more and more concessions , companies pulled out corporate headquarters , Quebec sure smartened up in a hurry .

How often have you read about Quebec threatening to detach itself in recent years ? I thought not .

[geriatrickid]

That's incorrect. 3G is anything but outdated.

4G standards are not finalized yet and only deployed experimentally in small zones, notably in Sweden.

You can't "skip" 3G because it is not meant to be replaced by 4G. Similarly, 3G did not replace 2G in the countries where it is deployed. Those are complementing network: 2G (gsm) is still used for calls and sms while 3G is used for internet. 4G will, for example bring the possibility of HD video streaming while roaming.

3G is shamefully late in Thailand but not too late. And the bright side is that once they finally obtain the 3G licenses (this is a licensing issue, not a technological or financial one) , operators will directly deploy the latest 3G revisions (usually called 3.5 and 3.9G and LTE) which will quickly make up for the delay.

Whoah, Even an IT challenged guy like me reads the news and looks at IT developments, just so I can learn about even more complex devices and systems that I can't figure out. From what I see, 4G is available in selected markets in the USA. Canada's major wireless companies are redeveloping to 4G capabilities, China reports that it has a network and it is even available in Tashkent. Yes, Sweden and Norway have a working network, but one can do wonders in a small area. When one gets to large geographic land masses like the USA/Canada and the use of 4G, that does suggest that change is on the way. The regulators and companies in Canada/USA started working on the scheme 2 years ago, so I don't think it is unreasonable to say that it takes time to implement advancements like 4G.

Thailand demonstrates a retarded growth in all things related to advanced technology and science. I use the word retarded in its purest sense. By the time the 4G system is ready to go in Thailand, it will have been surpassed by 5G, which South Korea is already planning for. That;'s the thing about technology. You have be in the game to keep up and Thailand isn't even sitting on the bench. Maybe, Thailand should forget about 4G for the time being and instead address its basic telecommunications and ISP weaknesses first. In terms of bang for the baht, I don't know what the advantages to Thai society will be of having a wireless 4G capability, when businesses can't even obtain reliable internet service.

[nikster]

Thaksin try to benefit the phone users himself and his cronies by dropping the cut taken by TOT & CAT for doing nothing. he was badly burned. Now, no one dare to touch TOT & CAT for that reason. Not even Mark or Korn. Else, double standard.

There, corrected that for you.

TOT, CAT, and all the sticky fingers in the pudding are very much holding back Thailand and the Thai people. It's not just foreign companies that are tired of this never-ending stupid mess of corruption, it's everyone else too. Every Thai should be tired of it. Thailand already has laws that prevent the "sellout" of Thai companies, but even that Thailand is unable to enforce - isn't AIS Singaporean now, and how can that be? A strong country defends it's laws.

Edited July 29, 2010 by nikster

[Pib]

But Thailand is still an IT "hub" isn't it?

Yes it is, but it's a "IT" hub for being neither male or female...kinda something in-between.

[moe666]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

Give us some actual facts and info on how the Thai people would lose out if some farang co. were allowed to develope 3g and 4g for Thailand.

[jybkk]

That's incorrect. 3G is anything but outdated.

4G standards are not finalized yet and only deployed experimentally in small zones, notably in Sweden.

You can't "skip" 3G because it is not meant to be replaced by 4G. Similarly, 3G did not replace 2G in the countries where it is deployed. Those are complementing network: 2G (gsm) is still used for calls and sms while 3G is used for internet. 4G will, for example bring the possibility of HD video streaming while roaming.

3G is shamefully late in Thailand but not too late. And the bright side is that once they finally obtain the 3G licenses (this is a licensing issue, not a technological or financial one) , operators will directly deploy the latest 3G revisions (usually called 3.5 and 3.9G and LTE) which will quickly make up for the delay.

Whoah, Even an IT challenged guy like me reads the news and looks at IT developments, just so I can learn about even more complex devices and systems that I can't figure out. From what I see, 4G is available in selected markets in the USA. Canada's major wireless companies are redeveloping to 4G capabilities, China reports that it has a network and it is even available in Tashkent. Yes, Sweden and Norway have a working network, but one can do wonders in a small area. When one gets to large geographic land masses like the USA/Canada and the use of 4G, that does suggest that change is on the way. The regulators and companies in Canada/USA started working on the scheme 2 years ago, so I don't think it is unreasonable to say that it takes time to implement advancements like 4G.

Thailand demonstrates a retarded growth in all things related to advanced technology and science. I use the word retarded in its purest sense. By the time the 4G system is ready to go in Thailand, it will have been surpassed by 5G, which South Korea is already planning for. That;'s the thing about technology. You have be in the game to keep up and Thailand isn't even sitting on the bench. Maybe, Thailand should forget about 4G for the time being and instead address its basic telecommunications and ISP weaknesses first. In terms of bang for the baht, I don't know what the advantages to Thai society will be of having a wireless 4G capability, when businesses can't even obtain reliable internet service.

Those are Pre-4G technologies branded as 4G by operators mostly because it looks cool.

Have a quick look at wikipedia and you will see that 4G standards are not defined yet and most of them use technologies like Wimax or LTE which might... or might not... end up as the 4G standard.

Regardless of the technical nitpicking from my part, I completely agree with you that this delay is catastrophic for Thailand...; but not very surprising either. It's very sad to see that the delay in development is completely due to political stupidity. Those technologies and equipments are already completely developed before they reach thailand and the associated business models have been tested before. Thailand Operator just have to copy and apply, and I'm confident they can do it quite properly. To do so they first need those 3G licenses and that's where we're stuck for several years already. Some are stalling because they're afraid to be caught in some irregular operations, while the other delay until they can find the way to get a bigger part of the cake. That's a disgrace.

However, I'd like to insist on the fact that you can't "skip" one generation to prepare the following. Most of them rely on the existence of the predecessor and are not necessarily meant to offer a complete coverage of the country.

4G will bring new services but won't replace 3G.

[powderpuff]

Since the airport is already completed - opportunities for graft & corruption are limited.

[AZBill]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

I think most farangs wonder why they are even talking about 3G, its out of date already and here they still talk about selling the licences.

I agree. We are already far beyond 3G in Farangland so I doubt this was a farang who wrote this. The comment about it being written by farang clearly shows a lack of what is going on outside of Thailand and is indemic to the problem so clearly presented in the article - that Thailand is just lagging behind the rest of the civilized world in this area and refuses to pull its head out of the sand.

[asiawatcher]

Clearly written by Farang for Farang gains only. Thai people, TOT & CAT will loose out.

And your comment is clearly why Thailand remains intellectually crippled and corrupt!