New Telecom Rules Aim To Prohibit Foreign Dominance

[george]

New Telecom rules aim to prohibit foreign dominance

BANGKOK: -- Thailand's national telecommunications regulator is moving to prevent foreign control of local telecom operators.

The National Telecommunications Commission (NTC) said a draft regulation detailing prohibitions on foreign control had been approved on Thursday.

NTC chairman General Chuchart Promprasith said the new regulations, once finalised, would be applied to NTC licensees.

They would cover a number of areas, including shareholding composition; business transaction authority; voting rights in major decisions; and benefits company executives receive from foreigners or overseas parent companies.

The draft regulation is to be posted on the NTC website (www.ntc.or.th) on Friday for comment.

Final details are expected to be published in the Royal Gazette soon.

The legal move is aimed at preventing foreigners from using nominees to dominate local Thai telecom operators.

--TNA 2006-03-24

[cclub75]

The legal move is aimed at preventing foreigners from using nominees to dominate local Thai telecom operators.

The question is : the new rules will apply to Shin ? I don't think so.

So now the deal is completed : the corrupted Thaksin has closed the doors to foreign investors who could ally with other thai operators.

Shin is again protected.

[otherstuff1957]

This is typical of something that always puzzles me about the Thai government. This announcement is basically saying that some beaurocrats are making new laws!! Isn't that what the Thai Parliament is for?

[Phil Conners]

What's new? Didn't they always have a monopoly on telecoms? Isn't that why Internet access in Thailand is about as bad and expensive as it comes?

[Thaising]

For those who are rich and powerful enough, there is a way to go through the NTC door. Monopoly is always bad for the end user that received bad services and have to paid more. TIT

[britainmal]

Here is Xenophobic Thailand at its heart again. People keep bringing up Thaksin like he is the only rich person in Thailand that is corrupt. This law will protect those rich Anti-Thaksin protesters. They don't have to worry about foreign competition just Thaksin, which they are using these protesters as a way to gain dominance of the Thai economy from Thaksin. Do the protesters really care about the poor farmers'? How do they plan to make thing better for Thailand ? I know by gettting rid of corrupt Thaksin and be corrupt themselves. What all these protesters' plans to make Thailand better? Another funny story is when Thailand talks about FTA's that will only benefit Thailand and even if it is an equal benefit FTA, it is no good because It has to only benefit Thailand.

They mentioned on Thai Radio about the story about France being a Xenophobic Country, but we all know who the really Xenophobic country is. Just give Thai Citizenship to people of non-Thai blood and you will se how Xenophonobic Thailand is. I hope Thailand wises up, but I don't think it will. Thailand could could have been an economic power house if they were more open. They already have the women and tourist market dominated.

[Plus]

It's not the NTC who made 49% shareholding rule, it's Thaksin and the parlament. What NTC is doing is preventing use of nominees to exceed that 49% limit. Temasek controls 96% of Shin through nominees. NTC is just trying to close loopholes and force companies to comply with the law. What's xenophobic about that?

And what has it got to do with PAD?

Thailand, as a country, ought to have a master plan for its telecommunications industry. I don't think they have one. Suddenly Thais find themselves being only customers while foreigners control 85% of the market, and True Move, the only Thai company still in business, has astronomical debts.

Look at auto industry - they thought it through and let Japanese dominate the market in exchange for making Thailand an export base, earning good money for the country.

In telecoms they will simply pay profits and dividends to foreigners with no benefit to themselves (oh, I forgot, Thaksin took good care of his family, that settles it).

They sold it cheaply. Now they just hope that Temasek will help them with setting up 3G, but 3G needs big initial investments in infrastructure. That infrastructure will benefit not only the company, but it will spur the growth in related industries, like content providers. That content can be potentially exported.

Does Thai government have any control over this if the industry is in foreign hands? Not much. They will have to BEG foreigners to help set up 3G for them, and in addition they will promise foreigners tax breaks and cheap loans.

So there you go, despite having Prime Minister with background in telecoms, country's industry was sold out for nothing, and is facing a bleak future.

[lukamar]

Now they just hope that Temasek will help them with setting up 3G,

They will have to BEG foreigners to help set up 3G for them, and in addition they will promise foreigners tax breaks and cheap loans.

Singapore has been covered by 3G for a couple of years. A requirement of the Shin/Temasek deal was that 3G licensing was in place by AIS. You may well find that Temasek is more dedicated to 3G technology than Shin was.

[jdinasia]

What's new? Didn't they always have a monopoly on telecoms? Isn't that why Internet access in Thailand is about as bad and expensive as it comes?

Bad ... yes ... Expensive? you have to be kidding!

[englishoak]

well it's pretty expensive considering here (uk)you get 2mg broadband 24/7 for about 1000bht per month.

[jdinasia]

worldwide I would think that that price would be cheap ... but I could be wrong ... only have experience in 5 countries

Edited March 24, 2006 by jdinasia

[Sandstone Art]

Anything to do with telecomunications now seems to trigger 'THAKSINPOBIA'

[Phil Conners]

Most places in US and Europe now have you 2048/512 kbps ADSL for the equivalent of about 1000 baht/month.

Compare that to the (effective) 400/200 kbps you get here for that price I would say this place is expensive.

You disagree that paying the same amount for 1/5 of the performance is expensive?

Edited March 25, 2006 by madsere

[Prakanong2005]

Some Examples from Singapore

Starhub the cable TV Company

56k unlimited dial up circa 393THB but why go for that when you can have 2MBps for 1470THB with all local calls free

The better comparison might be Singtel though.

Of course there are geographical and network considerations in Thailand but a bit of healthy competitions inthe cities and main commercial area's would not go amiss.

It will take a long time though given the myopic protectionism rife in Thailand and thats wht it will never be a true Tuger - cronyism and corruption has a limiting action on ecenomic growth

[jdinasia]

Most places in US and Europe now have you 2048/512 kbps ADSL for the equivalent of about 1000 baht/month.

Compare that to the (effective) 400/200 kbps you get here for that price I would say this place is expensive.

You disagree that paying the same amount for 1/5 of the performance is expensive?

Most places in the USA have broadband at 2Megs/sec? for $25 USD a month? more like 3 x that cost ... and certainly not available everywhere

[giulio]

expensive because doesn't give to you 1/5 of promised speed

in italy all my friend enjoy with 4,8mb DW and 256UP with 1500bath,and never problem about speed international...........so i understand that adsl can be more expensive but what is very bad here is speed(REAL),ping,service custommer ,so the price for 2 mb in thailand must to be very cheap and more cheap because never give to you 1/5 of promised speed

[britainmal]

It's not the NTC who made 49% shareholding rule, it's Thaksin and the parlament. What NTC is doing is preventing use of nominees to exceed that 49% limit. Temasek controls 96% of Shin through nominees. NTC is just trying to close loopholes and force companies to comply with the law. What's xenophobic about that?

They also have to open up the Telcom market under WTO Guidelines. There is nothing wrong with opening the Telcom Market to foreigners. This will help Thailand Mr. Anti-foreign Investment(MR. Plus). Thaksin was xenophobic in begaining , but now he is less xenophobic for doing a good deed by selling to Tamask. Closing the Telcom Market to foreigners is xenophonbic.

And what has it got to do with PAD?

It has a lot to do. They are a xenophobic anti-foriegn Investment oraganization that is using Thaksins' selling Shin Corp. to Tamask as a way to start up trouble.

Thailand, as a country, ought to have a master plan for its telecommunications industry. I don't think they have one. Suddenly Thais find themselves being only customers while foreigners control 85% of the market, and True Move, the only Thai company still in business, has astronomical debts.

Their Master plan must be to Liberalize their Telcom Market under free Market principles. It is about being Competitve not if Telcom sector is owned by Foreigners. There is nothing wrong with foreigners doing business in any sector in Thailand. It is about being competitve. You sound very xenophobic Mr. Plus.

Look at auto industry - they thought it through and let Japanese dominate the market in exchange for making Thailand an export base, earning good money for the country.

It is about competitive, not letting somebody dominate.

In telecoms they will simply pay profits and dividends to foreigners with no benefit to themselves (oh, I forgot, Thaksin took good care of his family, that settles it).

That is what you think foreign Investment is about. You have to be an

ignorant Thai person that makes Thailand look bad. Foreign Investment is about investing money in something and making sure the business grows no matter where it is. It is not just about colecting dividends. You are not a business person or know anything about it.

They sold it cheaply. Now they just hope that Temasek will help them with setting up 3G, but 3G needs big initial investments in infrastructure. That infrastructure will benefit not only the company, but it will spur the growth in related industries, like content providers. That content can be potentially exported.

They did not sell it Cheaply and It is Thaksin's Company not a Thai state Company. They have 3G already set up by Hutch from HK. You make no sense the infrastructure will only benefit the company. The infrastructure benefits consumers not just the Company. That is good if the content is exported. Thailand got most of its technology from other countries exporting technology to Thailand and Thailand importing it.

Does Thai government have any control over this if the industry is in foreign hands? Not much. They will have to BEG foreigners to help set up 3G for them, and in addition they will promise foreigners tax breaks and cheap loans.

What control does the Thai Governement need? They are only a regulatory agency, the private sector runs 3G. It is about being competitive not just foreigners controling things. Again it shows you are a xenophobic Thai.

So there you go, despite having Prime Minister with background in telecoms, country's industry was sold out for nothing, and is facing a bleak future.

Oh okay so just because Thaksin sold the Company to a foreigner the future is now bleak. If Thaksin sold it to a Thai I guess it would not be bleak according to xenophobic Mr. PLus. Shin and AIS are were started by Thaksin himself not by Thailand. Wake up Mr "Xenophobic " Plus you are really hurting Thailand with these uneducated remarks. I think you need to attend Britainmal University and

learn about International Business and Economics.