DTAC files suit seeking termination of NBTC foreign-dominance regulations

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.