3G Thai’ed Up

June 28, 2005 - source: BWCS

The National Telecommunications Commission in Thailand has announced that it will be in a position to award 3G licences to up to four new operators after July. Before it can do so however, the government must find its way around the problem of just who the NTC can issue such franchises to.

As legislation stands in Thailand, the national regulator is not able to grant permission to set up and operate next generation mobile phone networks to existing operators. This means that the NTC cannot legally give new concessions to the subsidiaries of the state-run duopoly TOT and CAT. It is thought that in order to circumvent this issue, wireless companies may form new entities to bid for the licences.

The NTC has yet to set out an exact timetable for prospective 3G operators but sources in the country indicate that it may wait for the forthcoming "telecom master plan". This new legislation is expected to include penalties for operators who fail to provide services which are up to scratch.

Once the NTC has issued licences to both TOT and CAT, should the government grant it the right to do so, the regulator says it would encourage negotiations to resolve the complex legal issues that have surrounded concessions for years.