'Licence needed' for telecom infrastructure fund

The working group, which considered the establishment of a fund by a telecom operator, decided that the NBTC must regulate all telecom services under the telecom law.

The watchdog had tasked the working group to look into the case following the plan of True Corp to set up a fund for raising at least Bt70 billion to repay debt and finance expansion. The plan included the sale of telecom assets and the rights to income from equipment rental to the fund. It will also acquire a 33-per-cent stake in the fund. True and/or its subsidiaries can lease back, lease and/or sub-lease assets in the fund.

The working group decided that the fund should be deemed a network provider and hence would have to apply to the NBTC for a telecom licence, under the Telecom Business Act. 

It will suggest to fund manager SCB Asset Management (SCBAM) to set up a juristic entity to apply for a telecom licence on its behalf as Securities and Exchange Commission regulations do not allow the fund manager to operate any infrastructure fund by itself. This juristic person will also be subject to the NBTC annual licence fee.

True was the first company in the telecom sector to announce a plan to set up such a fund, followed by Jasmine International. 

True intends to completely set up the fund within this year. However, CAT Telecom, which is the concessionaire of TrueMove, will inform the SEC that CAT and True still have issues to sort out related to the network assets the company will sell to the fund. TrueMove is subsidiary of True.