More firms may adopt BFKT model

Last week’s conclusion that the network rental service of BFKT (Thailand) to CAT Telecom does not breach the telecom law, and the national telecom watchdog’s plan to issue network rental regulations, are expected to set the stage for other companies, including Advanced Info Service (AIS), to adopt the BFKT model to offer telecom services.

AIS chief marketing officer Somchai Lertsutiwong said that AIS would consider following a similar model, but declined to specify details. He said AIS had closely watched the final conclusion of the BFKT case.

AIS and TOT are in talks on the possible formation of the Tower Co joint venture. Under its concession contract with TOT, AIS operates its network on a build-transfer-operate basis. Under the Tower Co initial concept, AIS would transfer its 13,000 telecom towers to TOT before its concession ends in late 2015. Then TOT would rent these towers to AIS to continue providing cellular service on a network rental fee basis, instead of a concession fee basis. 

TOT president Yongyuth Wattanasin said last week that if the talks with AIS are successful, TOT will incorporate AIS’ fibre network into Tower Co and will also discuss a possible partnership to offer 3G-2.1-gigahertz telecom services.

The conclusions of the telecom committee of the National Broad-casting and Telecommunications Commission (NBTC) said the BFKT network rental service could not be deemed as “telecom business” defined under Article 4 (2) of the 2001 Telecom Law, as it has exclusively rented the network to CAT, not to any companies in general. As a result, it is not bound by Article 7 of the same law that obliges any company that wants to operate a telecom business to apply for the licence. There is also not enough evidence to prove its guilt and to file a legal suit against the company.

But the nature of its network rental service is subject to Article 4 (1), which defines telecom service as under the 2010 Frequency Allocation Law. NBTC secretary-general Takorn Tantasit said BFKT has not breached the telecom law but could be deemed to be circumventing the telecom law. 

The telecom committee also ordered NBTC’s office to draw up regulations to govern the network rental service to oblige the companies that have rented the networks in a similar manner to BFKT to apply for its operation licence. The office will propose the regulations draft for the committee’s consideration in next 30 days.

BFKT has rented the 850-megahertz network for CAT and True Group to provide third-generation cellular service under CAT-True partnership contracts. The NBTC had investigated since last June whether BFKT had breached the telecom law by operating a network rental service without a telecom licence.