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Foreign Business Act May Be Tightened After DTAC Row


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OWNERSHIP

Foreign Business Act may be tightened after DTAC row

By Petchanet Pratruangkrai

Sirivish Toomgum

The Nation

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The Commerce Ministry may propose an amendment to the Foreign Business Act to close the gap that leads to different interpretations and legal wrangling over foreign-linked companies, including Total Access Communication (DTAC).

Deputy Commerce Minister Alongkorn Ponlaboot said the shareholding issue would be central to the amendment, as the law now focuses on factual figures, not the sense of ultimate ownership.

Regarding the DTAC case, he said, "The Business Development Department will look into the shareholder list and balance sheets as disclosed to the Thai and overseas exchange authorities. The report should be ready in the next few days."

The department will call a news conference today.

Kiat Sittheeamorn, president of the Thailand Trade Representative Office, who has tracked the ownership of Shin Corp, acknowledged that the process of proving the nationality of a company was complicated, as it involved a money trail. Likewise, to prove whether DTAC is a Thai or a foreign company, investigation into investments, shareholding ratios and the distribution of returns to shareholders would be necessary.

He noted that it was clear that Kularb Kaew Ltd, a piece of the Shin Corp jigsaw, is a nominee given that Thai shareholders share in only 3-4 per cent of returns against about 50 per cent holding.

The public prosecutors cannot pursue the case, though, given the missing Kularb Kaew shareholder.

The issue flared up again after TrueMove's complaint to the Crime Suppression Division that DTAC was a foreign-owned entity, operating in circumvention of the Foreign Business Act. Norway's Telenor and its local strategic partner DTAC both quickly released statements yesterday countering the complaint, affirming that Telenor's ownership in DTAC complied with Thai laws and regulations.

At a seminar yesterday on the political parties' policies on information and communications technology, politicians expressed surprise with True's move.

Buranat Samutharak, spokesman of the Democrat Party, said he had doubts over why TrueMove initiated the complaint, as it was the duty of the state agencies, not the private telecom operators, to examine which companies may or may not circumvent the Foreign Business Act and bring them to prosecution.

The complaint "is just to make it become front-page news, which hurts both of them", he added.

He said that if it were suspected that any companies have levels of foreign ownership exceeding what is legally permissible, the state agencies would step in to probe such cases and make them comply with the law.

Buranat said the country had clear laws and regulations governing foreign ownership in Thai firms and clear commitment with the World Trade Organisation on the matter of foreign investment in Thailand.

The Foreign Business Act, like the Telecom Business Act, caps foreign shareholding in Thai firms at 49 per cent.

Supachai Jaisamut of the Bhum Jai Thai Party said the legal case between the two companies did not bring any benefit to consumers.

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-- The Nation 2011-06-16

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DTAC have been doing very well in Thailand thanks to Norways biggest telecom company Telenor.

They have a lot of ownership in several countries and are always pushing to use the latest technology.

Maybe some of the Truemove bosses are a bit jealous and trying to hurt the company ? Then they mess with the wrong people, it will only hurt themselves.

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That is the last time I am using or buying anything from TrueMove. This is not the way to fight with one's competition. The way they do things is disgusting

Agreed, I'm about to get a smartphone plan and was going to go to true because the internet is faster, but after this I will definitely get dtac and deal with slower internet just so I don't have to give a dime to the xenephobic, scumbag dirty pool players down at true :annoyed:

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I use DTAC but no 3g is a pain and all of the Thai mobile providers are expensive for internet (a free tablet for all Thai kids??).<div>true may be tough on their competition but is not the real problem the overseas investment / business laws?</div>

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I read some one post in the News thread about this, that DTAC took the 3G license refusal on the chin and said, &lt;deleted&gt; it, we'll start with 4G then. Which would be a good slap in the face of True.

DTAC would have to get the 4G license, though, and build the infrastructure for it. Will they still be willing to do this now when they are being childishly attacked?

Jealousy is an ugly thing.

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I use DTAC but no 3g is a pain and all of the Thai mobile providers are expensive for internet (a free tablet for all Thai kids??).<div>true may be tough on their competition but is not the real problem the overseas investment / business laws?</div>

I pay 215 baht for 70 hours on the internet through DTAC.

I use a mobile bluetoothed to my PC.

I could pay 900 baht I think for 24/7 coverage and I honestly think 3 baht per hour isn't expensive.

True and CAT are actually trying to stifle ALL 3G competition for 3G and gain a monopoly. Do you think it will be better if they can do that?

If they gain a monopoly they can do and charge what they want an never mind the customer, after all where else can they go.

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I am sure that DTAC has a plan for 4G and are willing to build the infrastructure for it with a lot of financial support from the Norwegian owners.

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I am sure that DTAC has a plan for 4G and are willing to build the infrastructure for it with a lot of financial support from the Norwegian owners.

Sure, and Telenor has the experience already. I believe Norway is the 1st country in the world to have nearly full 4G coverage.

However, will DTAC still be willing to do it here if they get all these childish insults thrown in their faces?

Just goes to show that successful foreign businesses are hated here. The locals just can't take it because *shock, horror* they lose face! Oh noes....

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That is the last time I am using or buying anything from TrueMove. This is not the way to fight with one's competition. The way they do things is disgusting

Agreed, I'm about to get a smartphone plan and was going to go to true because the internet is faster, but after this I will definitely get dtac and deal with slower internet just so I don't have to give a dime to the xenephobic, scumbag dirty pool players down at true :annoyed:

Ditto!! TRUE (who are basically a bunch of farmers, "Chicken & Pigs") screwed over Orange years ago once they had been taught the ropes, as well as pushing for Shin Corp to be disbanded and now they use more dirty tricks. Their service is appalling and they always use playground-type tactics with competitors, as well as treat their own customers with disdain.

As a foreign shareholder in a company here, I shall be canceling any True products that might be used by our staff in this coming week.

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Unfortunately, my wife loves her 3GS and we finally managed to get our 3 office phones lines and internet hooked up a while ago.

All provided by the Evil Empire. *Monty Burns mode* Yeessss, excellent...

I believe a company can't become big without being evil. (That's why my own company will have to stay small.) I'll settle for a good life (which for me requires being able to look into the mirror every morning, even if that means less money in the bank).

A company also cannot become big without having many customers, that's where your wife fits in. Marketing and customer service (which not all appreciate with regards to the company in question, apparently) are key ingredients to success. IOW being evil is not enough, you also need to create a loyal customer base to become big.

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Unfortunately, my wife loves her 3GS and we finally managed to get our 3 office phones lines and internet hooked up a while ago.

All provided by the Evil Empire. *Monty Burns mode* Yeessss, excellent...

I believe a company can't become big without being evil. (That's why my own company will have to stay small.) I'll settle for a good life (which for me requires being able to look into the mirror every morning, even if that means less money in the bank).

A company also cannot become big without having many customers, that's where your wife fits in. Marketing and customer service (which not all appreciate with regards to the company in question, apparently) are key ingredients to success. IOW being evil is not enough, you also need to create a loyal customer base to become big.

My wife does have loyal customers. That way, even though our company is small we still do OK because we have mostly repeat customers.

We are aiming for steady, but slow growth, striving to provide a good product and good quality service.

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I read some one post in the News thread about this, that DTAC took the 3G license refusal on the chin and said, &lt;deleted&gt; it, we'll start with 4G then. Which would be a good slap in the face of True.

DTAC would have to get the 4G license, though, and build the infrastructure for it. Will they still be willing to do this now when they are being childishly attacked?

Jealousy is an ugly thing.

just bought a DTAC sim as an replacement for the True. They told me, it needs some days (2-3 days) for the Number Portability :) bye bye True !

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Unfortunately, my wife loves her 3GS and we finally managed to get our 3 office phones lines and internet hooked up a while ago.

All provided by the Evil Empire. *Monty Burns mode* Yeessss, excellent...

I believe a company can't become big without being evil. (That's why my own company will have to stay small.) I'll settle for a good life (which for me requires being able to look into the mirror every morning, even if that means less money in the bank).

A company also cannot become big without having many customers, that's where your wife fits in. Marketing and customer service (which not all appreciate with regards to the company in question, apparently) are key ingredients to success. IOW being evil is not enough, you also need to create a loyal customer base to become big.

My wife does have loyal customers. That way, even though our company is small we still do OK because we have mostly repeat customers.

We are aiming for steady, but slow growth, striving to provide a good product and good quality service.

I have loyal customers too. Alas, I will never become a giant MNC, because I have ethics. Only if you want to become a really big company you need to shed that idea of being a good person.

As they said in Waal Street (the movies): "Greed is good". For those who just want to make money.

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just bought a DTAC sim as an replacement for the True. They told me, it needs some days (2-3 days) for the Number Portability :) bye bye True !

This is news! Why did I read this in the headline news, I wonder.

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