True Move Accuses DTAC Of Operating Illegally

[webfact]

DTAC NATIONALITY

True cites evidences of non-Thai status

By The Nation

True Move Co Ltd today filed a complaint with the Crime Suppression Division to initiate proceedings against Total Access Communication Plc (Dtac), charging that Dtac operates the telecom business in violation of Thai laws.

In its complaint, True Move is urging the police to investigate the nationality of Dtac, which has Norway's Telenor as a major shareholder.

True referred to evidence from "The report on foreign shareholding and foreign controlled in telecommunication business" by the Telecommunications Committee of the House of Representatives published on April 21, 2011 which indicated that Dtac Total Access is a "foreign" entity by law since its shareholding structure comprises only 28.65 per cent Thai ownership. The remaining 71.35 per cent is owned by foreigners where shares are spread among individuals and various companies, all of which are nominees.

Proceedings are urged against individuals and companies which facilitate "foreign-owned entities" namely Dtac, by circumventing Section 4 of the Foreign Business Act BE 2542.

Under the law, foreign ownership is limited at 49 per cent.

Suphasorn Honchaiya, representing True Move in submitting the complaint, said that the company welcomes foreign investment but it must be genuine and transparent in terms of information disclosure.

Since Dtac has Telenor, a foreign state enterprise as a major shareholder, it is therefore necessary for Dtac to come out and openly declare its ownership structure in operating a telecommunications business in Thailand, she said, It should not spread its shares among nominee individuals and companies to conceal the company's nationality while at the same time misleading the public in believing that Dtac is in fact a Thai company, she added.

"Therefore if Dtac, which has the foreign state enterprise Teleneor as a major shareholder, is allowed to operate or control telecommunications businesses in the country, regardless of whether directly or indirectly, this will not only affect national security due to air waves being valuable and limited national assets, but can also cause huge damages for Thailand," she said.

She noted that while Dtac has reported its foreign shareholding amount as only 49 per cent to the Ministry of Commerce, the foreign state enterprise Telenor has reported to the Stock Exchanges in Norway and Singapore that it owns approximately 66.50 per cent in Dtac.

"True Move Company Limited is also pushing for a clear-cut interpretation regarding Dtac's nationality. If there is a final interpretation by the Criminal Court, this would help clear up many issues in the telecommunications industry.

"The filing of a report with the Crime Suppression Division against Dtact as well as against related individuals and companies, is to ensure that everything is done in accordance with the law and also to prevent any facilitation and/or circumvention of the law which forbids foreign entities to operate businesses in the telecommunications industry in Thailand," concluded Suphasorn.

Dtac earlier filed a complaint against True Move's deals with CAT Telecom, a state enterprise and the owner of its concession.

-- The Nation 2011-06-14

[janverbeem]

The filing of a report with the Crime Suppression Division against Dtact as well as against related individuals and companies, is to ensure that everything is done in accordance with the law

If they so worried that everything is according the law than they should start with looking into the structure themselves set up with Cat regarding their 3G deal.

[beano2274]

Looks like the gloves have finally come off between these two - it's going to be very interesting to see where all this leads.

Hopefully DTAC will finally get the 3G they deserve and we can finally start getting fast internet from a truly farang friendly company, but this may yet be a long way off.

Time for a coup - get the generals in and get those 3G licenses signed off... ;-)

good idea to get the Military involved as in Vietnam the military are already testing 4G!!!!!!!!

[REM]

Watching these companies bicker and fight reminds me of watching two kids fighting over a piece of candy, or tattling on each other to a teacher!

[Jobo]

It really is just a case of Thais ganging up on the foreign competition from my perspective.

They really do not like foreign competing businesses here hence the banks being closed to (foreign) competition, not that I have sympathy for banks.

[Crushdepth]

Maybe they should bring in some foreigners to sort out the mess. We might get 3G before 2050 that way.

[REM]

Maybe they should bring in some foreigners to sort out the mess. We might get 3G before 2050 that way.

Well said!

[animatic]

Tit for Tat, via TOT.

True is jealous because DTAC decided not to even worry about 3G and go directly to 4G, which is where the world is now going while Thailand dithered. They just offered a spectrum swap in exchange for getting 4 G started... must have been a punch in the gut for True, as DTAC would suddenly be quite ahead of True, and so True loses face.

Seems True couldn't think of anything better than to try this accusation. Sour grapes from True at DTAC thinking ahead, and not navel gazing, and attempting dirty tricks to get minuscule advantage over others.

DTAC Telenor and it's local lawyers must without question know the Thai investment laws and be in compliance. Too big and experienced not to.

This should just be thrown out after considering the source and the timing.

Edited June 14, 2011 by animatic

[WyattEarp]

Low blow and another reason why I would never use True.

[Phil Conners]

Maybe they should bring in some foreigners to sort out the mess. We might get 3G before 2050 that way.

Actually in this case I think the problem is political, not technical...

[Payboy]

True

Unable even to serve a decent cup of coffee.

[SomTumTiger]

They are companies - nameless faceless corporations. Who gives a sh#t what the say or do to each other. Go read a book.

[Kilgore Trout]

They are companies - nameless faceless corporations. Who gives a sh#t what the say or do to each other. Go read a book.

Luddite

[lomatopo]

Who owns AIS?

It doesn't help that when Telenor report their financials they brag about the DTAC contribution.

DTAC is profitable; True, not so. Q1: "True posted a net loss of THB 293 million, versus a profit of 1.24 billion in the first quarter last year, mainly on a mark-to-market forex loss."

DTAC Q1:Total revenue for the quarter was THB 19.7 billion, growing

strongly 3.9% QoQ and 11.7% YoY, and was mainly driven by

voice service, value-added services, and sale of handsets.

Non-voice revenue, particularly from data service, continued

to post strong growth due to higher penetration of smart

phones in our subscriber base.

In Q111, EBITDA was THB 7.2 billion, increasing 9.1% QoQ and

19.9% YoY from higher revenues and continued improvement

in cost base. EBITDA margin also improved to 36.6% from

34.8% in Q410 and 34.2% in Q110.

Furthermore, net profit for the period amounted to THB 3.3

billion, rising 13.0% QoQ and 36.3% YoY, driven by higher

EBITDA, gain from foreign exchange, and lower financial costs.

Beginning this quarter, income tax rate returns to the normal

level of 30%.

Nobody likes a profitable competitor. Interesting that they waited until now to sic the cops on 'em?

Edited June 14, 2011 by lomatopo

[Thai at Heart]

Aha, this old chestnut. I remember when AIS was sold, the papers started to point out that another mobile company and a rather large retailer use very similar share structure. Then someone got their British visa cancelled, and lo and behold, the whole story rapidly disappeared, only to resurface 2 weeks before the election.

Makes you wonder if True is expecting something in the new election that might make their future business a little harder than it appears to have been in the last 6 months.

[Phil Conners]

Who owns AIS?

I think it used to be Shinawatra (Thaksin) but I don't know if that's still the case.

[janverbeem]

Who owns AIS?

I think it used to be Shinawatra (Thaksin) but I don't know if that's still the case.

AIs is owned by Temasek.

[Phil Conners]

Actually I think AIS is owned by Shin Corp (Thaksins old company) which he then sold to Temasek under substantial controversy.

[janverbeem]

Actually I think AIS is owned by Shin Corp (Thaksins old company) which he then sold to Temasek under substantial controversy.

same same but different,isn't it?

[TAWP]

If you cannot beat someone, set up laws prohibiting a leveled playing-field and then make complaints that other players aren't following these protectionist and un-fair laws.

Sounds like the standard M.O. here.

Edited June 14, 2011 by TAWP

[CrustyJuggler66]

As soon as DTAC receive 3g/4g or whatever True mobile is finished and they know it. So inevitably they will do anything to stop it.. True is 100% Thai and boy the cracks show because of it. Dreadful customer service, coverage, Internet, and with a cable TV service that's nothing short of embarrassing.

But they still want top dollar for all that shoddy crap they re-badge as communication services! Greedy Thailand at its worst.

[skippybangkok]

Tit for Tat, via TOT.

True is jealous because DTAC decided not to even worry about 3G and go directly to 4G, which is where the world is now going while Thailand dithered. They just offered a spectrum swap in exchange for getting 4 G started... must have been a punch in the gut for True, as DTAC would suddenly be quite ahead of True, and so True loses face.

Seems True couldn't think of anything better than to try this accusation. Sour grapes from True at DTAC thinking ahead, and not navel gazing, and attempting dirty tricks to get minuscule advantage over others.

DTAC Telenor and it's local lawyers must without question know the Thai investment laws and be in compliance. Too big and experienced not to.

This should just be thrown out after considering the source and the timing.

Groan...... another nutter showing sheer ignorance. As soon as you talk about 4G, it shows how little you know about the subject.

[webfact]

DTAC: It's not True

By Sirivish Toomgum,

Usanee Mongkolporn

The Nation

Telenor says ownership complies with laws, in response to TrueMove's complaint to Crime Suppression Division

A new round in the legal dispute between TrueMove and Total Access Communication (DTAC) has erupted following TrueMove's filing of a complaint yesterday with the Crime Suppression Division against DTAC, alleging that its rival is a foreign-owned entity running a business in Thailand in circumvention of the Foreign Business Act.

The police said they would examine the details and decide whether there were grounds for prosecution.

Norway's Telenor and its local strategic partner DTAC both released statements countering the complaint, affirming that Telenor's ownership in DTAC complies with Thai laws and regulations.

A source at the Business Development Department of the Commerce Ministry, which is responsible for matters concerning the Foreign Business Act, said the department needed time to study details of the complaint. If it were to comment prematurely, it could backfire legally and/or affect related parties, it said.

A telecom industrialist said he hoped the National Broadcasting and Telecommunications Commission would get off the ground soon to grant new spectrum licences and promote genuine and fair competition in the telecoms sector. This would enable the industry to move forward, instead of getting bogged down in legal cases such as this.

A telecom analyst said foreign stock investors might pay less attention to the legal cases than to which of the political parties will form the next government, and more importantly whether the new administration's telecom policy would benefit the whole industry or favour particular telecom operators.

DTAC's share price closed at Bt60.25 yesterday, up 2.55 per cent, while True Corp stock ended the day unchanged at Bt4.

The Telenor statement said the group's ownership of DTAC was in compliance with the laws and regulations of Thailand. DTAC is a listed company, whose ownership structure is publicly available and registered with the Commerce Ministry, it said.

Telenor Group said it also wanted to restate that it is fully committed to the future development of the Thai telecom industry and to supporting DTAC in its ambition to roll out 3G services across the country. In a separate statement, DTAC insisted that it conducted its business in accordance with the principles of good governance. It would comply with any changes that might be made to the regulations governing its activities, it added.

True Move's complaint appears to be in revenge for DTAC's filing last month at the Central Administrative Court against CAT Telecom and its board, which sought a judicial review of the legality of the agreements between CAT and True Group on their joint investment in 3G services.

Suphasorn Honchaiya, TrueMove's representative in filing yesterday's complaint, denied that this was why it had lodged the complaint. The complaint had been submitted to ensure that everything was done in accordance with the law, and also to prevent any facilitation and/or circumvention of the law, he said.

TrueMove has pushed for a clear-cut interpretation regarding DTAC's nationality. If there is a final interpretation by the Criminal Court, this would help clear up many issues in the telecommunications industry. TrueMove cited that DTAC is operating a telecoms business that is forbidden to foreign entities, by circumventing the Foreign Business Act. The Act determines who should be deemed foreigners and caps the foreign shareholding in Thai firms at 49.99 per cent. It also determines that if any Thai entity's shares are at least 50 per cent owned by foreigners, then that entity will be deemed to be a foreign entity.

TrueMove's complaint is also against individuals and companies which facilitate "foreign-owned entities" in DTAC to operate a telecom business by allegedly circumventing the same law.

In filing the complaint against DTAC, TrueMove cited the report on "foreign shareholding and foreign control in telecom business" by the House telecom committee, published on April 21 this year.

The report indicates that DTAC is a foreign entity by law since its shareholding structure comprises only 28.65-per-cent Thai ownership, with the remaining 71.35 per cent as of last year being owned by foreigners, where shares are spread among individuals and various companies, all of which are nominees.

The House committee in April asked the Information and Communications Technology Ministry, the Finance Ministry and the Lands Department to investigate the case further.

Telenor Group said in its statement that it understood that the report of the House panel was still a draft that required further approval and discussion by Parliament and other concerned parties. An executive source at True said the company had not filed a similar foreign-ownership case against Advanced Info Service, as AIS had not filed any court challenge against its deals with CAT. AIS is the flagship business of Shin Corp, which is controlled by companies associated with Singapore's Temasek Holdings.

-- The Nation 2011-06-15

[Kilgore Trout]

In filing the complaint against DTAC, TrueMove cited the report on "foreign shareholding and foreign control in telecom business" by the House telecom committee, published on April 21 this year.

Complete load of crap; if this were the case you can bet we would have 3g by now

[skippybangkok]

I believe it was Sun Tsu in the Art of War " when attacking, consider your defence". If your holding a knife to some ones throat, but you have publicly known issues ( illegal shareholding ) - its a bit stupid.

For those who say the law is unfair, look at your own countries - is every business open to all nationals ? . i.e. I know some guys of Chinese origin who were banned from a military deal in the US. duhhhh.

[KKK]

Please DTAC hit back and hit hard. Time to put True in its place. You have my vote and always will. 11 years of being a DTAC user and no complaints. Friends have tried True and given up after a few weeks/months. I don't care who owns DTAC you are doing OK by me.

[bkk_mike]

Tit for Tat, via TOT.

True is jealous because DTAC decided not to even worry about 3G and go directly to 4G, which is where the world is now going while Thailand dithered. They just offered a spectrum swap in exchange for getting 4 G started... must have been a punch in the gut for True, as DTAC would suddenly be quite ahead of True, and so True loses face.

Seems True couldn't think of anything better than to try this accusation. Sour grapes from True at DTAC thinking ahead, and not navel gazing, and attempting dirty tricks to get minuscule advantage over others.

DTAC Telenor and it's local lawyers must without question know the Thai investment laws and be in compliance. Too big and experienced not to.

This should just be thrown out after considering the source and the timing.

Groan...... another nutter showing sheer ignorance. As soon as you talk about 4G, it shows how little you know about the subject.

4G- It's maybe not true 4G as the ITU requires 4G to be 100Mps, and the current "4G" being rolled out (LTE - long term evolution) peaks at about half that speed currently. What will be officialy accepted as 4G won't be really available until we have LTE Advanced...

However LTE is being called 4G by the marketing people and is up and running in parts of Sweden, Norway, Estonia and the US already. Along with announced rollouts in places like Australia, Croatia, Sri Lanka, etc. Phones are out and everything. (Look up the HTC Thunderbolt, Samsung Droid Charge, and the LG Revolution for instance - all currently for sale in countries where LTE is being rolled out.)

The best thing about LTE though... Virtually everyone has accepted it as a standard. Finally we'll have phones that work in Korea, Japan, the US and Europe (and as a result, the rest of the world). There was a rival (UMB), but development on that has ceased...

The UK is a bit of a laggard in Europe, but even there, the spectrum auction for LTE has been announced for next year, and there are trials already happening.

Maybe you should try Google before calling someone else ignorant.

Edited June 15, 2011 by bkk_mike

[dangman]

thanks guys.

i've always been happy with dtac.. but i've recently been tempted to go to true move due to their overseas call rate promotions.

but i won't bother now.. and dtac's still got a pretty good rate with their 'economy' overseas line.

i'll stay happy

[webfact]

Phone Provider Defends Ownership Controversy

A telecommunication researcher says the complaint accusing the country's second largest cell phone operator of being owned by foreigners will only hurt competition in the industry.

Meanwhile, the company's executive insists it is operating in compliance with Thai law.

DTAC's Chief Executive Officer Jon Eddy Abdullah maintained that his firm has complied with the Thai law and disclosed its shareholder structure to the public including the Commerce Ministry.

The country's third largest cell phone service provider True Move yesterday pressed charges at the Crime Suppression Division accusing DTAC of violating Article 4 of the Foreign Business Act.

True Move claimed foreigners held shares of more than the legal limit of 49 percent.

Abdullah insisted his company is committed to run its business with good governance and it is content to act in accordance with Thai regulations.

The Business Development Department, which approved the license for DTAC's operation, has received no complaints seeking examination into the company's shareholders structure.

The department will deliberate the evidence it obtained from the plaintiff, True Move, before deciding whether DTAC violated the Foreign Business Act.

Meanwhile, Deputy Chairman of the Thailand Development Research Institute Somkiet Tangkitwanich suggested the complaint against DTAC showed players in the telecommunication industry are using state regulations as a tool to seek marketing advantages rather improve their services.

Somkiet stated the move will create no benefit to the domestic telecommunication market and consumers.

He said that every country is moving head with business liberation while the ASEAN Economic Community, which will be officially established in 2015, will allow ASEAN national operators to hold shares in companies in the region of up to 70 percent

He went on to say the investigation into whether a company is owned by a foreigner must seek recommendation from the Business Development Department.

Somkiet urges Thai operators to run their businesses constructively and place priority on the quality of their service.

He also asked the new government to liberate the telecommunication industry to eradicate monopoly.

-- Tan Network 2011-06-15

[swerver]

Looks like the gloves have finally come off between these two - it's going to be very interesting to see where all this leads.

Hopefully DTAC will finally get the 3G they deserve and we can finally start getting fast internet from a truly farang friendly company, but this may yet be a long way off.

Time for a coup - get the generals in and get those 3G licenses signed off... ;-)

Please explain Fast Internet.

Internet consists of two items

1. Transmission

2. Server

I have a fast transmitter ipStar

But as time moves on the Server company keeps loading more-and-more customers – predominantly internet shopping outfits - onto its server without increasing its server capacity and by now has a Server that has the speed of molasses. If I want fast server access I have to work the internet Saturday and Sunday nights when the internet shoppers are not in their offices and have gone to bed.

I log on and ipStar in no time at all has me connected with the Server and from there on out consistently I get in the taskbar WAIT (anywhere from 1 and as long as 3 minutes) for the Server to do its job.

Contact the ISP and all you get the typical finger pointing of not us, it’s the ipStar which is BS because the ipStar technician has checked my computer system on several occasions and always finds ipStar to work at its assigned speed. LOL in LOS.