EU briefed on 'dominance'
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The National Broadcasting and Telecommunications Commission believes that the European Union now has a somewhat better understanding that its rules preventing foreign dominance in telecom operators, which are being revised, would not stand in the way of E
NBTC member Suthiphon Taveechaiyagarn said an EU delegation, led by its head of trade and economic affairs Antonio Berenguer, had met with him to seek clarification on many issues regarding the rules.
They wanted to know if the restrictions on foreign dominance go beyond the Foreign Business Act, if the rules contradict Thailand’s commitments to international trade organisations and if they detract from the investment climate for the telecom industry. Berenguer declined comment on the matter.
Suthiphon said the Telecom Business Law and the Constitution mandate the NBTC to issue foreign dominance notifications. The airwaves are a national resource and must be used for the public interest. The NBTC also has to ensure free and fair competition, which means the NBTC must regulate foreign shareholdings in local operators to exercise their rights within the law.
The Foreign Business Act and Telecom Business Act both cap foreign shareholdings in local telecom operators at 49 per cent. He also denied that the rules would limit the chance to bid for the NBTC’s third-generation-2.1-gigahertz spectrum licences to only two telecom operators. If licence applicants do not comply with the foreign dominance rules, they will not be automatically disqualified but will be given time to remedy the situation, he said.
In the second hearing of the draft of the revised foreign dominance rules, Total Access Communication expressed concern that the rules could be used to affect the NBTC’s planned auction of the 3G licences.
