Dept stands back from 3G auction
The Business Development Department has delayed releasing its new criteria for foreign businesses to avoid claims of preferential treatment for local operators in the competition for third-generation cellular licences.
“The department does not want to be a tool for obstructing new telecommunication operators from joining the auction” for spectrum bands, Yanyong Limprayoonwongse, director-general of the department, said yesterday.
“The department will consider announcing the new guidelines for inspecting firms that are at risk of breaching the Foreign Business Act after the bidding has finished,” he said.
The National Broadcasting and Telecommunications Commission (NBTC) will open bidding for 3G licences during the third week of next month.
Under the FBA, the telecom business is limited to Thai operators. Foreigners cannot hold more than 49.99 per cent of the shares in a telecom or else it will be classified as foreign and not allowed to operate here.
The NBTC has also asked for the department’s clarification on the nationality of each bidder. The department has already informed the watchdog about the status of each bidder based on the percentages of Thai and foreign shareholdings.
The department can still use the old conditions to prevent foreigners and nominees for offshore entities from operating businesses prohibited under the FBA.
The new qualifications will include the percentage of shareholdings, voting rights, administrative power, sources of funds and investment capital, dividend payments and financial transactions.
