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DTAC Files Suit Seeking Termination Of NBTC Foreign-Dominance Regulations


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DTAC files suit seeking termination of NBTC foreign-dominance regulations

USANEE MONGKOLPORN

The Nation

Total Access Communication (DTAC) has filed a lawsuit at the Central Administrative Court seeking termination of the national broadcasting and telecom watchdog's regulations aimed at preventing foreign dominance of Thai telecom operators.

The filing last Friday was on the grounds that the regulations, which took effect in August, are unlawful.

A source at the National Broadcasting and Telecommu-nications Commission (NBTC) said that DTAC, which has Norway's Telenor as its strategic partner, had been concerned that the regulations might adversely affect its plan to bid for a licence to use the 2.1-gigahertz spectrum to provide cellular broadband service. The NBTC is expected to auction the new spectrum licences next year.

In the court filing, DTAC claims that there is no specific provision of law empowering the NBTC to issue the regulations. While the regulations were drafted on the basis that a foreign-controlled entity is harmful to the national security interest of Thailand, the company says the watchdog has failed to clarify why it is so harmful.

The NBTC already has specific measures against national-security threat behaviour, such as phone-tapping, the company argues.

The suit adds that the regulations are against the policy of the current government regarding the attraction of foreign investment. Moreover, certain requirements of the regulations are against basic Thai law, such as shareholders' right to appoint a board of directors, and cannot be complied with by operators.

NBTC member Colonel Settapong Malisuwan yesterday said DTAC had informed the agency about the filing, and he understood that the company was acting to protect its interests.

According to DTAC chief executive officer John Eddy Abdullah, it is the company’s belief that the regulations would restrict competition and create an unlevel playing field, which would have a long-term negative effect for Thai consumers. The regulations contradict Thailand's international trade commitments and does not support Thailand's ambitions and long term strategy to attract more foreign investments into the country. They should not be also applicable to the telecom concessionaires and existing licensees as they obstruct competition on equal terms, and denies access to international best practices that benefit consumers.

The filing is timely, as the NBTC will hold a public hearing among specific groups on the foreign-dominance regulations tomorrow to see whether they should be reviewed.

The regulations have been opposed by many parties on the grounds that they discourage foreign investment in Thailand and might contravene the country's free-trade commitments to global organisations.

Supporters of the regulations consider they are needed to protect telecommunications spectra, which are a precious national resource, and the national interest.

The now-defunct National Telecommunications Com-mission took many years to develop a draft of the regulations. It was also concerned about the use of nominees to hold shares in local telecom companies on behalf of foreigners to the point where actual foreign shareholding exceeds the permissible level of 49 per cent.

The regulations define foreign dominance as direct and indirect control over a company's policies and the appointment of directors and high-ranking management.

While DTAC has Telenor as its foreign strategic partner, market leader Advanced Info Service has Singapore Telecom.

True Corp is the only telecom operator without a foreign strategic partner.

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-- The Nation 2011-12-01

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Interesting arguement. But, many countries cite control of airwaves as in the national interest. Although quite why having a Thai's owning a company makes it more or less likely to act against the national interest is a bit perverse. It isn't as though people haven't ever acted against their own national security.

A large section of the country has been running around saying that Thaksin wasn't acting in the national interest during his time in power by lining his own pockets. Then he sold his company to an entity attached to a country with one of the lowest corruption rates in the world, and yet this is not in the "country's" interests.

For most industries the interests of the country should extend to the a. interests of the consumer b. interests of the employees and c. interests of the shareholders. Keeping these industries in oligopoly and preventing more competition from foreign entities is becoming less and less in the national interest and eventually there will be a big shake up among the old money in Bangkok because it will become harder and harder to protect these industries.

Maximising revenue for entities like CAT are not in the national interest since it makes no provision for maximising the benefits of the consumer.

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“foreign ownership is a threat to national security“? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

I guess someone has never read a financial report in his life. Educate yourself. Download the Annual reports from AIS / DTAC / True for the last 10 years - freely available on the internet.

If there ever has been pocket lining, its AIS, TOT and CAT which have had the cushy ride. ( TOT would go bust without their concession revenues )

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So where were the watchdogs of NBTC while AIS was being sold to Singapore??

Yeh, or DTAC sold to Telenor a few years back. DTAC shat in their own dinner plate. Started slinging mud around re- the CAT / True 3G deal, and some of it came back. Som Nom Na ! Eddie's arrogance has blown back in his face

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"foreign ownership is a threat to national security"? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

I guess someone has never read a financial report in his life. Educate yourself. Download the Annual reports from AIS / DTAC / True for the last 10 years - freely available on the internet.

If there ever has been pocket lining, its AIS, TOT and CAT which have had the cushy ride. ( TOT would go bust without their concession revenues )

Are TOT and AIS not part of the Thaksin empire? and did not that iconic Thai beverage company Chang decide to list itself in Singapore rather than Thailand?

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“foreign ownership is a threat to national security“? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

I guess someone has never read a financial report in his life. Educate yourself. Download the Annual reports from AIS / DTAC / True for the last 10 years - freely available on the internet.

If there ever has been pocket lining, its AIS, TOT and CAT which have had the cushy ride. ( TOT would go bust without their concession revenues )

Yes, AIS, TOT & CAT have had a far too easy time in telecoms, but the original poster is correct about the True cable monopoly. There have been barely disguised moves by True to get DTAC removed from the telecoms arena because of 'foreign ownership'. I like choice & would hate to see True given any artificial boost by xenophobic moves to throttle the opposition.

Thailand has fallen behind Laos & Cambodia - to mention just two neighbours - in 3G & needs to stop playing politics & get on with sorting out the telecoms mess that it has allowed to develop. DTAC is only trying to protect its interests, which are considerable.

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"foreign ownership is a threat to national security"? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

Perhaps Thailand doesn't want to become the next link in the Echelon US/UK/ Aus/ Can/ Global spying network!! What does your comment about True mean? They don't have a monopoly now do they?

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"foreign ownership is a threat to national security"? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

Perhaps Thailand doesn't want to become the next link in the Echelon US/UK/ Aus/ Can/ Global spying network!! What does your comment about True mean? They don't have a monopoly now do they?

True want to stifle competition, Be it with telcom or TV Just remember it wasn't AIS or TOT who filed a complaint against DTAC in Thailand. . Do you know anything about business in Thailand? If major Thai corporations want to succeed they don't do it the "honest old fashioned way" that is offer a better service at a better price than the competition. It's done like everything else here with political deals and taking legal steps, and of course bribery.

Edited by KKvampire
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"foreign ownership is a threat to national security"? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

I guess someone has never read a financial report in his life. Educate yourself. Download the Annual reports from AIS / DTAC / True for the last 10 years - freely available on the internet.

If there ever has been pocket lining, its AIS, TOT and CAT which have had the cushy ride. ( TOT would go bust without their concession revenues )

Read and written more financial reports in a previous career than you are ever likely to have seen

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"foreign ownership is a threat to national security"? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

I guess someone has never read a financial report in his life. Educate yourself. Download the Annual reports from AIS / DTAC / True for the last 10 years - freely available on the internet.

If there ever has been pocket lining, its AIS, TOT and CAT which have had the cushy ride. ( TOT would go bust without their concession revenues )

Read and written more financial reports in a previous career than you are ever likely to have seen

Ok..... But then I would suggest dyslexia cause u obviously don't understand them

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So it is true that DTAC is Farang own afterall.

Ahaa !!!!! That must be why they have great customer service, and prices that are far below True. I actually was pissed off at True for trying to use the government to stifle competition , so switched to DTAC. :jap: Best move ever !!!

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"foreign ownership is a threat to national security"? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

Perhaps Thailand doesn't want to become the next link in the Echelon US/UK/ Aus/ Can/ Global spying network!! What does your comment about True mean? They don't have a monopoly now do they?

True want to stifle competition, Be it with telcom or TV Just remember it wasn't AIS or TOT who filed a complaint against DTAC in Thailand. . Do you know anything about business in Thailand? If major Thai corporations want to succeed they don't do it the "honest old fashioned way" that is offer a better service at a better price than the competition. It's done like everything else here with political deals and taking legal steps, and of course bribery.

For somebody who thinks they know so much about business in Thailand your posts are surprisingly fact free and project a simplistic viewpoint on business in LoS.. Do you think that big corporations elsewhere do business in the honest old fashioned way? Look into Apple's current attempts to win market share by filing patent violation suits on competitors who dare to produce a viable aleternative to iTech. Siemens is a another good example of an honest corp ( since they closed their slush fund bank and paid the US goverment over 1 billion $ in fines). Its interesting that True's complaint against DTAC wasn't an objection to foreign ownership but was a request for transparancy in reporting since DTAC's foreign partner has been declaring 50% ownership of DTAC in overseas stock echanges whilst reporting 49% on the SET

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"foreign ownership is a threat to national security"? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

Perhaps Thailand doesn't want to become the next link in the Echelon US/UK/ Aus/ Can/ Global spying network!! What does your comment about True mean? They don't have a monopoly now do they?

True want to stifle competition, Be it with telcom or TV Just remember it wasn't AIS or TOT who filed a complaint against DTAC in Thailand. . Do you know anything about business in Thailand? If major Thai corporations want to succeed they don't do it the "honest old fashioned way" that is offer a better service at a better price than the competition. It's done like everything else here with political deals and taking legal steps, and of course bribery.

For somebody who thinks they know so much about business in Thailand your posts are surprisingly fact free and project a simplistic viewpoint on business in LoS.. Do you think that big corporations elsewhere do business in the honest old fashioned way? Look into Apple's current attempts to win market share by filing patent violation suits on competitors who dare to produce a viable aleternative to iTech. Siemens is a another good example of an honest corp ( since they closed their slush fund bank and paid the US goverment over 1 billion $ in fines). Its interesting that True's complaint against DTAC wasn't an objection to foreign ownership but was a request for transparancy in reporting since DTAC's foreign partner has been declaring 50% ownership of DTAC in overseas stock echanges whilst reporting 49% on the SET

A bit behind the game , so much for your analysis of True.

http://www.thaivisa.com/forum/topic/516460-true-corp-backs-laws-restricting-foreign-firms/

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"foreign ownership is a threat to national security"? How pathetic,more likelu

a threat to owner of the likes of TRUE lining his pockets because of no monopoly

Perhaps Thailand doesn't want to become the next link in the Echelon US/UK/ Aus/ Can/ Global spying network!! What does your comment about True mean? They don't have a monopoly now do they?

True want to stifle competition, Be it with telcom or TV Just remember it wasn't AIS or TOT who filed a complaint against DTAC in Thailand. . Do you know anything about business in Thailand? If major Thai corporations want to succeed they don't do it the "honest old fashioned way" that is offer a better service at a better price than the competition. It's done like everything else here with political deals and taking legal steps, and of course bribery.

For somebody who thinks they know so much about business in Thailand your posts are surprisingly fact free and project a simplistic viewpoint on business in LoS.. Do you think that big corporations elsewhere do business in the honest old fashioned way? Look into Apple's current attempts to win market share by filing patent violation suits on competitors who dare to produce a viable aleternative to iTech. Siemens is a another good example of an honest corp ( since they closed their slush fund bank and paid the US goverment over 1 billion $ in fines). Its interesting that True's complaint against DTAC wasn't an objection to foreign ownership but was a request for transparancy in reporting since DTAC's foreign partner has been declaring 50% ownership of DTAC in overseas stock echanges whilst reporting 49% on the SET

Your on the dollar. I think DTAC claimed something like 79% or soemthing on the Singapore stock exchange, where in Thailand only 49%.

Eddy started slinging poop forgetting he had a few skeletons in his closet.

Edited by skippybangkok
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