Telecom panel to prompt reduction in mobile charges with cellular price cap

The new rule will also apply to broadband Internet service, Korkij Danchaivichit, deputy secretary-general of the National Broadcasting and Telecommunications Commission (NBTC), said last week.

The NBTC will also engage |a consultant to study telecom market factors for its plan to |further cut the annual regulatory fee to enable telecom licence holders to cut service fees for consumers.

The NBTC collects about Bt5 billion of regulatory fee income per year.

The Telecom Committee will tomorrow consider the draft price cap rule before quickly fleshing it out for submission to the NBTC in the future.

If the NBTC approves, the committee will soon hold a public hearing on the rule.

Under the price cap proposal, the Telecom Committee will work out the appropriate voice and data tariffs based on several variables, including actual operating costs.

Then it will require the providers to lower voice and data service rates every year until they meet its rates. Those failing to do so will face a fine.

The committee aims to enact the rule this year, which will see the mobile phone operators starting to lower tariffs next |year.

This new rule would make the mobile service providers try to adjust their charges in line with their actual costs. For example, if NBTC’s calculation finds that the operators should cut service prices by 5 per cent, the operators will have to manage their costs so that they can do that.

The operators would also benefit from this new measure, as they could woo more customers through lower prices.

This price cap is suitable for |a regulated market, while the ceiling price like the present one |is for a monopoly market, he added.