Thai NTC Nods To Draft Rules On Foreign Dominance

[webfact]

NTC nods to draft rules on foreign dominance

By USANEE MONGKOLPORN

THE NATION

The National Telecommunications Commission yesterday approved draft regulations aimed at preventing foreign dominance of local telecom operators, a key element to be used in its auctioning of 3G-2.1GHz spectrum licences.

The NTC will use the regulations in the prequalification process to select eligible bidders.

The draft will be put to a hearing with the telecom operators within 15 days of its publication on the watchdog's homepage, said NTC member Suranan Wongvithayakamjorn.

Foreign telecom operators, including strategic partners of local telecom companies, are waiting to see the details of the draft out of concern that it might affect their plans to bid for 3G (third generation) licences next month.

The NTC is currently conducting a roadshow to woo overseas telecom operators to bid for the licences.

Advanced Info Service (AIS) has Singapore Telecom as its strategic partner, while Total Access Communication (DTAC) has Norway's Telenor.

Under the draft regulations, the NTC will oblige licence holders to determine measures to prohibit behaviour deemed to be foreign dominance of local operators.

The draft defines the term "foreign dominance" as foreigners' direct and indirect control or influence on the company in setting a policy and engaging in management beyond that permitted by their share ownership. This includes the use of nominees and foreign ownership that exceeds the level permissible by law.

SIGNIFICANT MARKET PLAYERS

Suranan said the NTC board also approved the determination of what would constitute "significant market players" in each segment, following its recent announcement of regulations on the issue.

The NTC determines TOT as the significant market player in the fixed-telephone business, TOT and True Corp in Internet business, CAT Telecom in the international Internet gateway segment, and AIS and DTAC in the mobile-phone service business. These entities will be subject to the regulations.

The board also approved draft regulations on "local loop unbundling", which mandates telecom operators to allow others to access their networks on a non-discriminatory basis.

The NTC also ordered five telecom operators - AIS, DTAC, True Move, TOT and CAT - to get mobile number portability (MNP) off the ground next month, or they would not be eligible to bid for the 3G-2.1GHz spectrum licences.

MNP will allow users to keep their mobile numbers when switching to another network after paying a porting fee to the network they switch to. The NTC published the MNP regulations in the Royal Gazette last August.

RATES 'TOO HIGH'

In a separate matter, Somkiat Tangkitvanit, vice president of the Thailand Development Research Institute, yesterday said mobile-phone service airtime rates could be lower than present if the NTC were to adjust interconnection rates to an appropriate level.

He made the remark at a seminar on the issue held by the NTC Consumer Protection Institute.

The regulator's interconnection-charge regulations mandate the networks of callers to pay a fee to the networks of call receivers at mutually agreed rates.

AIS, DTAC, and True Move reached interim bilateral interconnection-charge agreements for Bt1 per minute per call in 2007.

Somkiat said the rate was too high and the appropriate rate should be around 30 satang per minute.

The NTC recently issued an interim rate of 50 satang per minute to be used by those failing to reach agreement on effective rates on their own. CAT already signed bilateral agreements with AIS and DTAC to adopt such a 50-satang rate.

Somkiat claimed mobile-phone operators had made a combined profit of at least Bt26 billion per year from the differential between their on-net and off-net call rates.

On-net rates are the promotional rates for subscribers calling within their own networks.

They are cheaper than off-net rates, which are for calls to different networks.

The average on-net rate is 88 satang per minute, while the average off-net rate is Bt1.44.

The NTC ordered all mobile-phone operators to adjust the two rates to same level last month.

Somkiat is concerned, however, that some operators might opt to raise the on-net rate to the same level as the off-net rate, instead of vice versa, which would be to the detriment of consumers.

-- The Nation 2010-08-05

[SamritT]

Isn't Thaksin govt is accusing of opening the telcom sector to Farang?

[jayjay0]

The article started of right away by staing the problem with the whole system. They just mis worded it. They say

"

The NTC will use the regulations in the prequalification process to select eligible bidders."

It should have read

"

The NTC will use the regulations in the prequalification process to ban qualified bidders.