Thai Court Drops 3G Bombshell

[webfact]

Court drops 3G bombshell

By Usanee Mongkolporn

The Nation

Injunction order says licence auctioneer NTC itself in transition; Planned auction on Monday hinges on NTC's appeal today against verdict

The Central Administrative Court has hampered hopes for the long-overdue 3G (third generation) telecom development in Thailand in the near future with a bombshell injunction on the licence auction scheduled to kick off on Monday.

In a 16-page verdict, the court reasoned that if the auction was allowed to proceed as scheduled by the National Telecom Commission (NTC), it would lead to a number of obstacles because the NTC itself is currently in a transition period, awaiting the creation of a new regulatory body.

The NTC will today appeal against the court's decision, and hope for a quick, favourable verdict, without which Monday's bidding would need to be called off.

NTC commissioner Natee Sukonrat said the telecom body will appeal today. If the court accepts the appeal, the NTC will go ahead with holding the auction on Monday as planned. If the court rejects the appeal, the NTC will stop all auction activities. This could mean a considerably lengthy delay as the establishment of the National Broadcasting and Telecom Commission hinges on a bill awaiting parliamentary approval.

The licence auction is scheduled to take place at Evason Hua Hin and Six Senses Spa hotel from September 20-27, with two 3G licences up for grabs at a starting price of Bt12.8 billion per licence.

The court's verdict put Information and Communications Technology Minister Chuti Krairiksh in the hot seat and dealt a severe blow to the country's three major telecom firms - AIS, DTAC, and True - which were all set to bid for the lucrative licences. Chuti last night said it was "my fault" to have failed to prevent CAT Telecom, an agency under his watch, from seeking the court's injunction.

Citing the 2007 Constitution, the court said there would be a new regulatory body called National Broadcasting and Telecom Commission (NBTC) soon with the powers to oversee both the broadcasting and telecom sectors.

To avoid creating future trouble for the NBTC, the court said, the NTC's plan to auction the 2.1G radio frequencies for the 3G mobile services should be suspended.

A bill to set up the NBTC is now pending in the House of Representatives following key amendments made by the Senate.

The House of Representatives is expected to set up a joint committee with the Senate to consider the proposed legislation, which was earlier expected to be enacted by the end of this year. The joint deliberation could last long, and Chuti himself seemed uncertain if the auction could be called within next year or bidders will have to wait until next year.

Observers believe the planned NBTC is unlikely to be functioning until the middle of next year at the earliest when all commissioners are appointed.

Although the NTC was given provisional power to fill the void as the country awaits the setting up of the NBTC, telecom analysts blame the NTC for having waited too long. They said that with NBTC close to coming into existence, the current NTC would be perceived more and more as lacking the authority to auction the licences.

One analyst also warned that if the 3G auction is postponed for an extended period, telecom operators might not invest more on the existing networks as they have to transfer their network assets to the state concession owners TOT and CAT under the Build-Transfer-Operate (BTO) when their concessions end.

The concessions of TrueMove, AIS, and DTAC will end in 2013, 2015, and 2018 respectively.

Thana Thienachariya, head of corporate affairs and strategy of Total Access Communication, declined to comment on the matter, pending the company's examination of the court order. But he is concerned that the industry would be affected if the auction is delayed.

Wichien Mektrakarn, chief executive of Advanced Info Service, said the NTC has to hurry with its appeal. What the private telecom operators can do is wait and see if the court will accept the NTC appeal.

Supachai Chearavanont, True Corp chief executive, said he was disappointed by the court's verdict, but hoped the NTC could make the appeal successfully.

"If the auction is delayed indefinitely, the country will lag behind in terms of technology adoption."

Information and Communications Technology Minister Chuti Krairiksh said he is confident the 3G auction would take place within this year. He added that the government has supported the development of the 3G technology.

In a petition filed with the court, state-owned CAT Telecom said the NTC's planned auction was unlawful and could financially affect its concession revenues.

The telecom operators that can obtain the licences will migrate the customers from the state concessions to the licences to save regulatory cost.

CAT estimated that the state agency would lose Bt15 billion as a result of customer migration to the licences.

As regulator, the NTC insisted that it had followed international standards in designing the auction, and had carefully studied the various pros and cons.

The auction would benefit the entire telecom industry by promoting greater competition, adding that the NTC acknowledged, however, that this would adversely affect any currently dominant entities that could not improve their efficiency.

Justification for the injunction

- The court views that the auction could affect the work of the upcoming National Broadcasting and Telecommunications Commission.

- There is no spectrum allocation master plan

- The court will also ask the Constitution Court to rule if the NTC has overall regulatory authority under Section 305 of the 2007 Constitution

- The court views that granting an injunction now will affect only three bidders. If the auction takes place and later the Constitution Court rules that the NTC's authority is against the 2007 Constitution, this could lead to possible bigger impacts to the related parties.

- According to the court, the injunction will not affect the NTC work and the public telecom service as there are already two 3G telecom operators, TOT and CAT Telecom, and the network of existing private telecom operators have already covered nationwide.

-- The Nation 2010-09-17

[arkom]

While in other news...every other country in the world are staring migrate over to 4G. We might as well face it, Thailand will probably never get anything faster than EDGE...what a joke!!

[jonclark]

While in other news...every other country in the world are staring migrate over to 4G. We might as well face it, Thailand will probably never get anything faster than EDGE...what a joke!!

Agreed, even with a map the Thai telecoms industry still couldn't find its' own arse.

[SomTumTiger]

I have had True 3G for a year, works great. Works in most major cities in Thailand. Stop the bitching and switch to True lol.

[whybother]

I have had True 3G for a year, works great. Works in most major cities in Thailand. Stop the bitching and switch to True lol.

You've been PAYING for True 3G for a year.

What they haven't told you is that it is just going across the 2.5G network.

[jybkk]

I have had True 3G for a year, works great. Works in most major cities in Thailand. Stop the bitching and switch to True lol.

Just wait a bit. They are operating under a temporary trial license. CAT will probably soon go after that one soon: "If I can't make money out of 3G, I'll make sure nobody does"

[Thai at Heart]

Love him or loathe him, you can bet this mess would probably have been solved if Thaksin was around.

They have been running around in circles saying that Thaksin damaged the country. One can hardly say that this mess is in the benefit of the "country" can one?

[whybother]

Love him or loathe him, you can bet this mess would probably have been solved if Thaksin was around.

They have been running around in circles saying that Thaksin damaged the country. One can hardly say that this mess is in the benefit of the "country" can one?

Ofcourse he would have solved. He would have made sure he made billions of baht from it, too.

[Payboy]

Love him or loathe him, you can bet this mess would probably have been solved if Thaksin was around.

They have been running around in circles saying that Thaksin damaged the country. One can hardly say that this mess is in the benefit of the "country" can one?

Ofcourse he would have solved. He would have made sure he made billions of baht from it, too.

Progress has a price. See Suvarnabhumi.

[selftaopath]

While in other news...every other country in the world are staring migrate over to 4G. We might as well face it, Thailand will probably never get anything faster than EDGE...what a joke!!

Wonder why so many Thai people smile and laugh so much? Maybe because Thailand is the JOKE. The entire civilized world is learning this. Let's all laugh at the joke in which we live.

[dominique355]

Let me get that straight: One government agency (CAT) is suing another government agency (NTC) because the plaintiff government agency is afraid of loosing money if the government plan will be implemented.

Well, here we see our Government at Work, always the welfare of the public in sight and clear leadership!

And is shows again what happens if two government agencies without a clear plan fall into a deep conflict of interest between serving the public and filling its own pockets. Perhaps the NTC should sue CAT and TOT for dissolution and establish an agency with only the public interest in mind. Wake up, this is the 21st century!

[Thai at Heart]

Love him or loathe him, you can bet this mess would probably have been solved if Thaksin was around.

They have been running around in circles saying that Thaksin damaged the country. One can hardly say that this mess is in the benefit of the "country" can one?

Ofcourse he would have solved. He would have made sure he made billions of baht from it, too.

Oh of course, he would have got paid one way or another. The prospect of having to spend his own company's money to implement 3g was reported one of the big reasons for him to sell to Singtel. Of course it took the IMF mess to break the IMIE code and once that was done, other companies came into the market and telephone prices dropped from 1000 USD per piece to the levels today.

The entrenched mess that is CAT is something that ALL political parties should get solved. The licensing, pricing and functioning of the internet here lags behind the region.

If any government can't see that there is more to "helping" the country than insuring that CAT exists in its present form there is something wrong.

[whybother]

Love him or loathe him, you can bet this mess would probably have been solved if Thaksin was around.

They have been running around in circles saying that Thaksin damaged the country. One can hardly say that this mess is in the benefit of the "country" can one?

Ofcourse he would have solved. He would have made sure he made billions of baht from it, too.

Progress has a price. See Suvarnabhumi.

And look at all the problems at Suvarnubhumi. "Progress" would be better without all the corruption.

[Gonzo the Face]

Have no idea what the real problem is.

What I do know is , if there is this much interest and furious activity afoot, then there has got to be a humungous number of pockets looking to be filled.

If it were solely for the good of the people or country, there would be little or no interest.

G

Edited September 17, 2010 by Gonzo the Face

[SamritT]

THIS IS THAILAND. Don't like, then go home.

[nowork114]

THIS IS THAILAND. Don't like, then go home.

I expected that - Thailand has been subject of worldwide laughter since the coup and if they can't blame Thaksin, blame foreigners ...

[Pib]

To 3G or not to 3G, that is the question for Thailand. I'm beginning to think the answer is "not to 3G" for another year or so. Just too many governmental agency/union rice bowls are being messed with and they don't like it. Combine this with provisions of the law that apparently the government hasn't fully complied with and this makes it too easy for disgruntled parties to file a court case on apparently valid grounds and get a ruling in their favor until the government cleans up the loose ends. I have no doubt the government will get 3G implemented; it's just the 3G party may almost be over by the time they get there. Best of luck in getting the loose ends tied up.

Edited September 17, 2010 by Pib

[Daewoo]

Love him or loathe him, you can bet this mess would probably have been solved if Thaksin was around.

They have been running around in circles saying that Thaksin damaged the country. One can hardly say that this mess is in the benefit of the "country" can one?

Thaksin caused this whole bloody mess...

Thaksin blocked the development of oppositon Telco's because he didn't want to sink money into building networks for Shintel while he was trying to sell it... and he didn't want other opperators building networks better than his while it was on the market... 2 years after he sold it, the governement is still trying to work out the mess (not helped by his family/'associates' who are still in there protecting his remaining interests)...

Rival networks don't want to throw money into GSM, and then throw more into 3G when it does arrive... EDGE just meets the 3G speed requirement, but is nothing like UMTS for speed, there is no global standards so different vendor equipment can not interwork... No serious development has been put into GSM by vendors for almost a decade...

THAT is the reason Thailand is 5 years behind Malaysia, and 8 years behind the other developed Asian countries...

Daewoo,

20 Years International Telecommunication Engineering Professional.

[gotlost]

I have had True 3G for a year, works great. Works in most major cities in Thailand. Stop the bitching and switch to True lol.

AIS 3G is the only 3G in the Chiang Mai area.

[jonclark]

THIS IS THAILAND. Don't like, then go home.

Thailand is my home

[Buchholz]

Love him or loathe him, you can bet this mess would probably have been solved if Thaksin was around.

And in true Thaksin style, 3G would have been awarded only to AIS as a monopoly, shortly followed by more regulatory laws that hampered all other competitors. Indeed, by 2010, the entire telecommunications field would have been reduced to one company, his AIS.

[RKASA]

"One analyst also warned that if the 3G auction is postponed for an extended period, telecom operators might not invest more on the existing networks as they have to transfer their network assets to the state concession owners TOT and CAT under the Build-Transfer-Operate (BTO) when their concessions end"

Oh yes the end game - You built it we take it. You know what great service is in store for the future. I would pull the plug now and save the loses. Brake out the old logs and sticks we will be pounding out our messages soon enough. They are from the government and they are here to help themselves.

Everyone made money when Thaksin lowered fees and that is the reason this PM has proposed the same thing. That money saved was used to put service into un served areas - then via economy of scale and mass purchases of handsets and airtime by new customers everything got cheaper and cheaper. Please tell be where the Thai people are screwed here - did Thaksin make money - daaa - yes they all did and other companies got lower fees then AIS did so they must have made even more.

That money was earned by a company that provided a working service to people that paid for it - people whom in the past had been deigned even getting any service from ToT and CAT for years and they are happy back at playing the stop progress game that gives them power over people.

When are they going to audit CAT and ToT and find out what has happened to all the fees they did collect? If the records look anything like the wire they run on the poles I am sure they couldn't even do it.

[Wolfie]

True's share price dropped almost 25% this morning, down to 5.25b a share from almost 7b a share... somethings got them spooked

[Rama]

THIS IS THAILAND. Don't like, then go home.

AMAZING Thailand. If we want to have corruption and want to stay in the 20th century (this is the 21st century btw) and keep our people ignorant and you don't like - go home!

[Wiggy]

Why not start the bidding for 5G or 6G? By the time it's all done we'll be up to speed (pun intended) with proper countries and not remaining a banana republic. Oh, and before the "go home" stuff this is my home too.

[Deeral]

It looks, has always looked as if 3G is the subject of Thai corruption and a few self-serving businessmen who, if it means they can't control and make money out of 3G, would rather their fellow countrymen had nothing at all.

This attitude pervades the Thai elite who it seems will do anything to keep Thailand's wealth in their own hands, by whatever means it takes.

Edited September 17, 2010 by Deeral

[RKASA]

True's share price dropped almost 25% this morning, down to 5.25b a share from almost 7b a share... somethings got them spooked

What an opportunity to spin - red shirts kill true's stock

cue the cast

[HerbalEd]

Love him or loathe him, you can bet this mess would probably have been solved if Thaksin was around.

They have been running around in circles saying that Thaksin damaged the country. One can hardly say that this mess is in the benefit of the "country" can one?

Delayed 3G service is one thing .... ripping off billions of baht, and summary executions are another. I'll take slower mobile service over Thaksin any day.

[nikkoid66]

Too much money and conflicting interests in these 3G auctions. In France too, it took quite a time before the 3G licenses were allowed, the court had no balls to rule and dumped the problem. It is a temporary delay, buy True stocks as they will jump hi after the problem will be solved...

[rubl]

I had a dream. We skipped 3G and went directly to 4G. It's only when I tried to look at the calendar to see what year that I woke up

Mind you both 3G and 4G may be a wee bit too expensive for the average Thai. Thai school kids seem more than happy with what they can do with what they have now.