TrueMove Fires Latest Salvo In Row Over DTAC Ownership

[webfact]

TELECOMS

TrueMove fires latest salvo in row over DTAC ownership

By Sirivish Toomgum

The Nation

Complaint over foreign holdings filed with NTC

TrueMove yesterday filed a further complaint against Total Access Communication (DTAC) over what it claims is its rival's foreign ownership.

The complaint this time was lodged with the national telecom watchdog, following similar approaches last week to the Crime Suppression Division and the Business Development Department.

TrueMove asked the National Telecommunications Commission to initiate a probe into whether its rival's operations breach the Constitution and telecom law.

It also asked the NTC to consider forcing DTAC to comply with Article 84 (1) of the Constitution by either stopping the company competing with local players or withdrawing its business licence.

Acting NTC secretary-general Takorn Tantasit said he would forward the complaint for the board's consideration.

However, the five-member NTC board is reportedly unlikely to convene today, given the lack of a quorum.

Takorn said that if the NTC board decided to examine the case, it would take some time before its investigation could be completed.

He added that the board would also need to consider whether the commission indeed has the authority to conduct such a probe, given that DTAC is not an NTC licence holder, but a concession holder of CAT Telecom.

TrueMove's filing yesterday questioned whether DTAC's operations might contradict Article 8 of the Telecom Business Act of 2001, which states that any Type 2 or Type 3 licence holder must not be a foreign entity as described in the Foreign Business Act of 1999. The law caps foreign shareholding in Thai firms at 49 per cent.

TrueMove also questioned whether DTAC was in compliance with Article 84 (1) of the Constitution, which forbids the state from operating a business in competition with a private operator. TrueMove interprets this article as also forbidding foreign enterprises from competing with Thai businesses.

Norway's Telenor is DTAC's strategic partner, with a 49-per-cent stake in the company. Norway's Trade and Industry Ministry owns 53.97 per cent of Telenor.

TrueMove's representative in filing the case, Suphasorn Honchaiya, declined to say at which state authorities the company would press its case against DTAC again in the near future. However, she said the company would continue to file similar complaints with a number of agencies.

TrueMove is also considering taking its case to the Ombudsman, with a view to the complaint being brought before the Constitution Court in regard to DTAC's alleged charter violation, she added.

TrueMove filed its first complaint against DTAC at the Crime Suppression Division (CSD) on June 14, followed by a similar move the next day at the Business Development Department (BDD). It alleged that its rival was a foreign entity doing business in Thailand by circumventing the foreign business law, which determines who is a foreign entity and caps foreign shareholding in local firms.

The BDD will hold a news conference today about its progress in the case, while the CSD will call TrueMove in to seek additional information this week. On Monday, the BDD said it expected to complete by next week its investigation into the full share structure of DTAC to ascertain whether it is using nominees to hold shares for foreign shareholders, taking the foreign shareholding beyond the legally permissible level.

Last week, the department said that according to DTAC's registration filings, the company is 51 per cent owned by Thais and 49 per cent by foreigners, which means DTAC is a Thai company, according to Article 4 of the Foreign Business Act.

However, it set up a committee to conduct a deeper probe into DTAC's shareholding, after TrueMove's complaint last Wednesday.

TrueMove has denied that the complaint against DTAC stems from the latter's filing of a complaint at the Central Administrative Court against CAT Telecom and its board in connection with the deals CAT signed with True Corp in January for collaboration on third-generation wireless broadband service.

After TrueMove lodged its complaints with the CSD and DBD last week, DTAC and Telenor denied the allegations and affirmed that Telenor Group's ownership of DTAC was in compliance with the laws and regulations of Thailand.

-- The Nation 2011-06-22

[SaamBaht]

Business friendly Thailand.

[KKvampire]

True acting like a child who always had everything it wanted from its parents ,all the presents and latest toys,but suddenley it stopped when it was an adult and had to compete in the market place

[jackdawson]

they totally have it in for the european managed (owned ?) DTAC

DTAC might be advised to wave a white flag now ; there's NO winning this one

[Thai at Heart]

they totally have it in for the european managed (owned ?) DTAC

DTAC might be advised to wave a white flag now ; there's NO winning this one

And you don't think that if PTP wins, they won't change the relevant laws to protect Temasak and Telenor? True is staring the telecoms market right between the eyes if PTP wins the election.

[dominique355]

I wish True would fight its competitors in the market with better products and better service. God know there is room for improvement!

[BigFun]

Can Farang ever really understand Thainess? 55555

[Disinto]

What a childish action. Instead of trying to improve their network, they just hit below the belt. Despicable.

[Arkady]

Every one knows that:

1. The FBA is a ridiculous law that remains in place to perpetuate inefficiency and corruption at the expense of Thai consumers.

2. The shareholder structures of both DTAC and AIS are only in compliance with the FBA at the most superficial level but their foreign governmental owners have used money and influence to break Thai law (however stupid)in a sleazy way that would be impossible to get away with in their own countries.

3. True as a Thai entity is unable to compete in the sector on a level playing field but is capable at doing suspect deals with state enterprises.

No one comes out of this smelling of roses. Meanwhile, Thailand has a backward and uncompetitive telecoms sector plagued with government and state enterprise interference and anachronistic laws and regulations. The AEC agreement might eventually render the FBA redundant in cases like these, since ASEAN companies will be able to own 70% in the service sector. There is as yet no strict definition of what qualifies as an ASEAN company and Telenor should be able to use a Singapore subsidiary to qualify.

[Napat9]

Sad day if DTAC is ever forced to close it's doors here... Not only will many of us have to set up new mobile accounts (most likely with True), but it will be goodbye to one of the most customer friendly businesses I've ever been with in Thailand. I will sorely miss them if they go.

If DTAC has hidden it's real ownership, as many foreigners do for smaller businesses and residential properties, I hope they find the right people to bribe so they can continue to operate here.

[animatic]

True is scared of DTAC and no denying it.

DTAC is an efficiently run company and has better thinkers making moves to circumvent those True has tried through the old school tie, good ole'boys network.

True can't compete on a level playing field because of incompetence, so they try now to stop a DTAC move forward by attempts to prevent that move forward being discussed till these accusations are resolved..

True deserves to have it's ass handed to it,

with expiry stamped on it, like out of date meat at Tesco.

With ASEAN rules coming into affect, this is Trues last chance to take a hit at DTAC.

Edited June 22, 2011 by animatic

[KKK]

TrueMove unable to compete or provide decent services sinks low by trying to create a monopoly closing down its competitors.

[Disinto]

True is scared of DTAC and no denying it.

DTAC is an efficiently run company and has better thinkers making moves to circumvent those True has tried through the old school tie, good ole'boys network.

True can't compete on a level playing field because of incompetence, so they try now to stop a DTAC move forward by attempts to prevent that move forward being discussed till these accusations are resolved..

True deserves to have it's ass handed to it,

with expiry stamped on it, like out of date meat at Tesco.

Amen to that

[EvilDrSomkid]

Every one knows that:

1. The FBA is a ridiculous law that remains in place to perpetuate inefficiency and corruption at the expense of Thai consumers.

2. The shareholder structures of both DTAC and AIS are only in compliance with the FBA at the most superficial level but their foreign governmental owners have used money and influence to break Thai law (however stupid)in a sleazy way that would be impossible to get away with in their own countries.

3. True as a Thai entity is unable to compete in the sector on a level playing field but is capable at doing suspect deals with state enterprises.

No one comes out of this smelling of roses. Meanwhile, Thailand has a backward and uncompetitive telecoms sector plagued with government and state enterprise interference and anachronistic laws and regulations. The AEC agreement might eventually render the FBA redundant in cases like these, since ASEAN companies will be able to own 70% in the service sector. There is as yet no strict definition of what qualifies as an ASEAN company and Telenor should be able to use a Singapore subsidiary to qualify.

Not sure if I agree with point 2, but for the other points, agreed.

Strange nothing is in the news of DTAC trying to protect itself for these petty attacks.

If I were DTAC, I would run a serious (legal) counter attack to humiliate TRUE.

The gloves have come off.

[Arkady]

Every one knows that:

1. The FBA is a ridiculous law that remains in place to perpetuate inefficiency and corruption at the expense of Thai consumers.

2. The shareholder structures of both DTAC and AIS are only in compliance with the FBA at the most superficial level but their foreign governmental owners have used money and influence to break Thai law (however stupid)in a sleazy way that would be impossible to get away with in their own countries.

3. True as a Thai entity is unable to compete in the sector on a level playing field but is capable at doing suspect deals with state enterprises.

No one comes out of this smelling of roses. Meanwhile, Thailand has a backward and uncompetitive telecoms sector plagued with government and state enterprise interference and anachronistic laws and regulations. The AEC agreement might eventually render the FBA redundant in cases like these, since ASEAN companies will be able to own 70% in the service sector. There is as yet no strict definition of what qualifies as an ASEAN company and Telenor should be able to use a Singapore subsidiary to qualify.

Not sure if I agree with point 2, but for the other points, agreed.

Strange nothing is in the news of DTAC trying to protect itself for these petty attacks.

If I were DTAC, I would run a serious (legal) counter attack to humiliate TRUE.

The gloves have come off.

Yes, they probably should. All they do is re-state that their shareholding structure is in compliance with

Thai law with no further explanation to rebuff the accusations, indicating to my mind they are on shaky ground. I haven't studied the structure in detail but I believe they have Thai nominee shareholders buried one or two layers back who only receive 10% of the dividends they should be entitled to from a "Thai" company that owns DTAC shares through a private company preferred share scheme. AIS has a similar structure but the investigations into Kularb Kaew have been left on ice for a few years due to some excuse. These structures could be attacked more vigorously through the angle of any land the companies own via the Land Code which is more clear cut on foreign nominee structures, if any one had a mind to do it, although I don't want to give the sleaze buckets at True any ideas. Basically they have both management control and the majority of the economic benefits from the nominee companies. I don't know how things are in Norway but, personally, I find it a bit of a stretch that Singapore's sovereign wealth fund resorts to such obvious mechanisms to circumvent Thai law. If that happened in Singapore, they would throw the book at both the foreign investors and the nominees. In their case they thought it was no problem because they were dealing with Thaksin and thought his dynasty would rule indefinitely without any inconvenient interruptions. I am totally against the FBA and all foreign ownership restrictions on companies and land but don't think it is appropriate for foreign governments to try to circumvent laws in other countries.

[webfact]

TRUE Steps Up Legal Drive against Rival

The country's number-three cell phone company asks the telecommunication regulatory panel to scrap the license of its rival telecom firm for allegedly breaching the constitutional rule against foreigners operating in the industry.

True Move Company today submitted a complaint with the National Telecommunication Commission, or NTC, asking it to revoke the operational license granted to the Total Accesses Communication, or DTAC, the country's second largest mobile phone operator.

The NTC now functions as the National Broadcast and Telecommunication Commission, or NBTC, though the establishment of the new panel in charge of regulating the telecommunication industry has not been completed yet.

True Move claims that 53.97 percent of DTAC's shares are held by Telenor, which is operated under the supervision of the Norwegian Trade and Industry Ministry .

The company said DTAC violated the Constitution's Article 84 which bans any government agency from competing with private sector's businesses.

True Move's representative Supasorn Horachaiya stated the main purpose of his company's petition is to seek an NTC ruling to determine if DTAC is illegally owned by foreigners.

Supasorn said another complaint his firm filed today is on an additional issue for which it is requesting an investigation into whether its rival violated the Telecommunication Business Act requiring that licenses for operators in the industry be granted to Thai companies as stipulated by the Constitution's Article 84.

Supasorn went on to say his company is considering filing more complaints with the Office of the Auditor General and the National Anti-Corruption Commission to seek a speedy ruling.

He maintained his company will keep filing complaints against DTAC until the ruling is made.

NBTC's acting Secretary General Thakorn Tanthasit said his panel should take at least one week or two to complete its investigation into the allegations.

Meanwhile, Thakorn is unsure if NBTC has power to revoke a company's telecommunication license given it is only a regulatory body, but at its meeting, it will consider the petition regarding the matter.

-- Tan Network 2011-06-22

[ferryb]

Business friendly Thailand.

The best move for us customers is to trow away your true sim and change it for a dtac sim and cancel "UBC" as well to show how Thai friendly farangs are. That would be a True Move.

[Thai at Heart]

CP has bought and paid for its protection against competition long ago. They will try everything they can to continue to operate with as little competition as they can.

[webfact]

Commerce Minister: DTAC Scrutiny to be Concluded on July 4

The Business Development Department says it could disclose the findings about whether the country's second largest cell phone service provider violated foreign ownership rules.

Commerce Minister Porntiva Nakasai said she expects the Business Development Department will reach its conclusion on the complaint filed by True Corporation accusing Total Access Communication or DTAC of having violated the Foreign Business Act as True claims foreigners own the majority of DTAC's shares, within the next ten days.

Porntiva stated that she has instructed the department to carry out the investigation fairly and maintained that the ruling will not be in favor of any particular party.

The department's Director General Banyong Limprayulwong said his agency has already sent a letter inviting dispute parties True Move, DTAC and the firms or individuals related to the allegation for its interrogation scheduled to begin tomorrow.

Banyong said the investigation should be completed before July 4th.

He said if DTAC is found to be owned by foreigners, his department will seek prosecution against both the company and nominees for violation of the Foreign Business Act which entails an imprisonment sentence of up to three year, or fine between 100,000 baht and 1 million baht, or both.

Bangyong suggested if the court ordered DTAC to suspend its operation, the company is permitted to revise its shareholders structure to meet the legal requirements and seek renewal of license from the foreign business panel.

-- Tan Network 2011-06-23

[animatic]

Scrutiny of DTAC stops the day AFTER the election....

DTAC need not have a press campaign,

only prove to investigators that the allegations are false.

And then sue, S.O.P, those that made the allegation for fraudulent prosecution or the like.

Edited June 23, 2011 by animatic

[KKvampire]

Any falang here who subscribe to true tv should cancel

cant think whyany of you pay 1500~2000bht a month for such garbage anyway,particularly if you not interested in american tv shows and movies or uk premier football

[EyesWideOpen]

Pretty pathetic move by True. They should be investing their time in improving their business. For example, when I call the True help line, they ask me to punch a number for English. After I punch the correct number, it launches off into Thai.... I have decided I will fire my own shot over the bow, by changing my provider to Dtac.

[Disinto]

Pretty pathetic move by True. They should be investing their time in improving their business. For example, when I call the True help line, they ask me to punch a number for English. After I punch the correct number, it launches off into Thai.... I have decided I will fire my own shot over the bow, by changing my provider to Dtac.

Actually, the funniest thing is that when you call their English hotline, you have to wait a bit just to find a vacant agent. Eventually after one or two minutes, they automated voice will say that no agent is available and that you have to leave your number for someone to call you back.

1/ There's no option to wait for a little longer

2/ TrueMove will actually call back after a day or two. Not exactly a good experience...

The only solution is to call during off peak hours. Not exactly convenient...