Korn takes swipe at CAT, TOT

[StrontiumDog]

http://www.bangkokpost.com/news/poli...ipe-at-cat-tot

Korn takes swipe at CAT, TOT

Poor service, returns since partial sell-off

• Published: 11/11/2010 at 12:00 AM
• Newspaper section: News

TOT Plc and CAT Telecom have failed to provide efficient services and appropriate returns to the state since their partial privatisation, Finance Minister Korn Chatikavanij says.

Mr Korn sharply criticised the telecom agencies yesterday during the house debate on the much-delayed bill setting up the National Broadcasting and Telecommunications Commission.

The commission will regulate telecommunications and broadcasting.

The bill was passed yesterday on a vote of 228:2. The bill is based largely on the lower house's version of the draft, with some minor changes.

Mr Korn said he was frustrated with services provided by TOT and CAT. They hold on to the status of concession owners and frequency regulators even though they have now been partly privatised. "Why is the concession revenue still with them? Why don't we take this chance to fix it?" he said.

The approved bill provides for the agencies to be granted a three-year period, instead of one year as proposed in the original draft, to transfer concession revenue after deducting costs to the NBTC.

The money will then be forwarded to the state.

He said the Finance Ministry was willing to support their operations if the return of the money to the state affected their financial status.

Mr Korn said CAT earned 21 billion baht from concession fees in 2007 but handed over only 2 billion baht to the state.

The agency earned 23 billion baht in fees in 2008 but gave a return of 5.5 billion baht.

It returned only 3 billion baht in 2009 from a total of 21 billion baht.

"The return is just 15 to 20 per cent of income.

"What has CAT done for the public in the past three years?" he said.

This was unfair not only to their competitors but also to consumers, the minister said.

PM's Office Minister Sathit Wongnongtoey, a member of the joint House-Senate committee vetting the bill, said TOT and CAT were concerned about their finances.

The bill requires Senate approval before going for royal endorsement.

The Senate is expected to endorse it next Monday or no later than Nov 22. Selection of NBTC members can begin 180 days after royal endorsement.

Thai Broadcast Journalist Association president Wasant Paileeklee hailed the bill's passage. The bill will help allocate frequency resources that now rest in the hands of state agencies, he said.

[StrontiumDog]

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1037211

House Approves NBTC Bill

UPDATE : 11 November 2010

The House of Representatives has officially approved the Frequency Allocation Bill.

As pointed out by a minister attached to the prime minister's office, the bill will allow the National Broadcasting and Telecommunications Commission to be appointed to oversee the 3G bidding process.

The House of Representatives has approved the Frequency Allocation Bill by 228 to 2 votes.

During the head count, 24 lawmakers abstained and 14 did not vote.

The voting session took nearly five hours, during which time the MPs were allowed to freely debate the issue.

During the session, the Prime Minister's Office Minister, Sathit Wongnongtoey, reiterated that the bill needed to be passed so the National Broadcasting and Telecommunications Commission could be appointed to oversee the 3G telecommunication system bidding process after the commission was suspended by the Administrative Court.


Meanwhile, Information and Communication Technology Minister Juti Krairerk reaffirmed that the TOT is being administered by a qualified committee appointed by the Finance Ministry and good governance experts.

Juti also reiterated that though the state enterprise is aiming to compete commercially, it continues to keep public interest in mind.

The Committee on the National Broadband Network has recently approved a budget of billions of baht to bring hi speed internet coverage to 80 percent of the country.

The ICT minister also said the government is aiming for 90 percent national coverage, and whether the TOT will be successful depends on the government's policy and the level of corruption.

The bill will be submitted to the Upper House for approval.

[StrontiumDog]

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1037210

Scholars Split on the NBTC Bill

UPDATE : 11 November 2010

The president of the Thai Broadcast Journalists Association has expressed confidence that The National Broadcast and Telecommunications Commission will be able to ensure fairness in the competition.

Meanwhile, some scholars have warned that the bill could unfairly benefit some big businesses.

The TOT and Thansettakij Newspaper organized a session to discuss the pros and cons of the Frequency Allocation Bill, with many experts in the field in attendance.

At the session, the President of the Thai Broadcast Journalists Association Vasant Paileeklee said the long awaited bill will play a major role in ensuring fairness in frequency allocation.

Vasant added that the bill will also allow the development of the 3G telecommunication system to be resumed.


Vasant said, however, that the bill does have a few flaws, but they could be corrected later on.

In the end, the President gave the bill his full endorsement.

Meanwhile, Anupap Tiralarp, an independent scholar of information and telecommunication, argued that similar bills in many countries have been revoked because they only benefited several big businesses.

Small investors do not have means to enter the high cost competition.

The final version of the bill outlines the following:

1.) The National Broadcast and Telecommunications Commission or the NBTC will have 11 members.

2.) The NBTC will exclude the representatives from the security and executive branches

3.) Each member of the NBTC must be between 35 to 70 year old.

4.) The appointment of NBTC members will be the responsibility of the Secretariat of the Senate

5.) The state enterprise must give back the return from the telecommunication concessions to the state within three years.

[StrontiumDog]

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1037244

Time to Hunt for Their Own Food

UPDATE : 11 November 2010

After nearly four hours of debate, the House of Representatives on Wednesday voted 228-2 to approve the National Broadcasting and Telecommunications Commission (NBTC) draft bill. Then, the bill will be tabled to the Senate for their consideration next Friday.

The main issues in the final draft of the bill, as amended by the joint House-Senate committee, include: (1) the composition of eleven members of the NBTC board; (2) the exclusion of executives from the security and administrative branches from the NBTC board; (3) the age eligibility of 35-70 years old for persons elected to be commission members; (4) the Secretariat of the Senate as the agency in charge of selecting and appointing commission members; (5) the three-year dead line for the payment of the outstanding concession revenue owed to the state by the telecommunications state-enterprise.

Previously, the joint House-Senate committee had talked over Article 46, which concerns the frequency for the contribution of remaining concession revenues by the CAT Telecom to the state, whether it should be every one or three years. The panel ended up agreeing on three years because it feared that the state enterprise could suffer a major financial setback if it is required to pay the contribution on a yearly basis. The decision was made out of concerns about the survival of two state-enterprise -- TOT and CAT Telecom -- which have long been sitting idly and making easy money from revenue sharing arrangements with private concessionaires.

The new bill will require TOT and CAT Telecom to return the rights of frequency allocation to the NBTC, which will cost the two firms hundreds of billions of baht in lost concession revenues. This could potentially turn their balance sheets red.

This year, CAT Telecom has recorded 31.6 billion baht in revenue, down one percent from last year, and 4.5 billion baht in profit, down 22 percent, over the first eight months. About 65 percent of its revenue comes from revenue contribution collected from Total Access Communication (DTAC) and TrueMove. Without the concession revenue, CAT Telecom generated only 11.8 billion baht in revenue on its own and was actually 1.6 billion baht in red during the period.

Likewise, TOT raked in 27 billion baht in revenue in the first half of this year, a 5-percent drop from last year. Of the amount, contribution from Advance Info Service accounted for 14 billion baht.

Therefore, the NBTC bill will spur the two state enterprises to adapt to change and start to make money on their own and find new sources of income. And the most important thing for the two state enterprises to introduce positive changes to both the corporate culture and working habits within the organizations. TOT and CAT Telecom personnel could no longer sit in their comfortable chairs and must put more efforts in bringing income into the companies.

In addition, TAT and CAT Telecom must push ahead with their telecommunications development projects to prepare for the liberalization of the telecommunications industry in the future, since it is time for them to hunt for their own food instead of feeding on others’.

Krungthep Turakij editorial, November 11th, 2010.
Translated and rewritten by Wacharapol Isaranont


Please note that the views expressed in our "Analysis" segment are translated from local newspaper articles and do not reflect the views of the Thai-ASEAN News Network.

[nikster]

This is surprising, and rather swift. What took them so long, one wonders?!

Am I reading this right that they not only finally created an institution which can allocate 3G frequencies, but also want the concessions revenue back from CAT and TOT?! I assume that's not yet a reality but rather yet another battle in the ongoing war for what's basically state money.

Korn is absolutely right of course, but what he's criticizing now would have been just as valid 5 years ago.

The funny thing is it's quite possible that both CAT and TOT will swim when tossed in the water. The same thing happened to many privatized telecoms companies in Europe. They went from being slow moving dinosaurs losing money and providing crap service to become competitive private companies. Thanks to infrastructure investments and expertise inherited from the state, they had a huge advantage to start out with.

TOT DSL service has already much improved over the last years. CAT - not so much.

[StrontiumDog]

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1037531

New Telecom Body to be Operational Next Year

UPDATE : 18 November 2010

The acting telecom regulator and key business operators are all pinning their hope on the formation of the new regulatory body, which is widely expected to be operational next year.

At a seminar held to discuss the government’s role in media and telecommunications after the new frequency allocation bill comes into effect, members of the press and representatives from the National Telecommunications Commission, or NTC, were present to share ideas on the issue.

NTC member Colonel Natee Sukolrat said that before the much awaited law to govern the country’s telecom regulatory body charged with the allocation of radio, television and broadcast frequencies, comes into effect in 2011, the NTC will do its best to oversee the entire industry.


He added that NTC is now in the process of drafting a master plan for the telecommunications business and to manage national frequencies, which is expected to be complete by May 2011, or before the National Broadcasting and Telecommunications Commission, or NBTC, is up and running.

Meanwhile, Vichien Mektrakarn, CEO of Advanced Info Service, the country’s number one mobile phone service operator, expressed concern that the formation of the NBTC will take longer than expected.

It also believes that the birth of the NBTC will be realized before the company’s 2G concession expires in five year’s time.

[StrontiumDog]

http://www.nationmultimedia.com/2010...-30142854.html

Cat, TOT given deadline to rectify amendments

By The Nation
Published on November 22, 2010

Information and Communications Technology Minister Chuti Krai-riksh has set December 15 as deadline for TOT and CAT Telecom to conclude ways to rectify some allegedly unlawful telecom concession amendments.

Chuti said he recently ordered the presidents of TOT and CAT to urge the state-private joint committees under Section 22 of the 1992 Public-Private Joint Venture Act to conclude the matter within the deadline. Representatives of the two state agencies have chaired the Section 22 committees.

Chuti added that he would consider both state agencies as negligent in their duties and as having failed to protect the state interest if they fail to meet the deadline. He said he had urged the state agencies three times but they have failed to work out solutions. The committee submitted its conclusions to Chuti in July but he could not submit them for the Cabinet’s consideration because they did not propose solutions to the cases, only the opinions of the committee members on the cases.

Chuti added that they would have to urgently find solutions to the problems as some concessions would eventually expire. The Section 22 panels have reviewed the concession amendments of many private telecom operators, from Advanced Info Service, Total Access Communication to True Move and Digital Phone. This follows the Council of State’s ruling in 2007 that those amendments failed to comply with the Act, given the lack of approval from coordinating committees and the Cabinet.

The concessions granted to TrueMove, AIS and DTAC will end in 2013, 2015 and 2018 respectively.

The telecom operators are expected to take the cases to the arbitration panel and then to court if they are ordered to go back to the original terms in their concessions. If they do this, the cases could take years to settle, they say.

[StrontiumDog]

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1037729

Loxley Teamed Up with Samart in TOT 3G Bid

UPDATE : 24 November 2010

Loxley plans to form a consortium with Samart Corporation to bid for TOT's 3G telecommunication system.

Bidding is expected to begin in December.

The President of Loxley, Thongchai Lamsam, has announced that his company has entered negotiation with Samart Corporation to form a consortium for bidding for TOT's 3G telecommunication system.

Thongchai said more foreign companies such as Huawei from China, Nokia, Siemen, and Sony Ericsson may also join the consortium to provide equipment support.

The Loxley president also pointed out that the bid's term of reference must be reviewed before November 28, and, if possible, the company will initiate the bidding process in December of this year.

Loxley has also reported that it has contracted Mobile Virtual Network Enabler to take charge of managing the billing services and call center for the 3G telecommunication system.


The company has expressed confidence this this will help expand the customer base and ensure the quality of the services.

The Loxley president also talked about the suspended online lottery project which is currently being investigated by the Department of Special Investigation, for an alleged violation of anti bid rigging laws saying the company is moving ahead with the project and is hoping the government will judge fairly.

Yesterday, the company signed a memorandum of understanding with a number of small and medium size Vietnamese businesses to promote Thai companies in Vietnam.

Because of its close relationship with the government of Vietnam, Loxley will serve as a caretaker for Thai companies planning to do business there.

The company also claims Vietnam is a low risk market with a good credit standing.

Meanwhile, Loxley has also reported that the company's revenue has increased by 10 percent from the 10 billion baht earned last year, despite fluctuating currency exchange rates.

The company pointed to consumer products and the state's technology procurements as the main source of the company's income.

[StrontiumDog]

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1038346

Standing on the Uncertain Shoulders of Giants

UPDATE : 9 December 2010

One man's advantage will always inevitably result in another man's disadvantage. But, the right to compete to be the winning party is a key component to a healthy democracy.

Recently, two of Thailand's biggest players in the mobile service industry, put aside their rivalries to raise their voice against the government's unfair allocation of telecommunication technologies.



The two have since put up a strong front against what they view as telecommunications regulations that would give only certain mobile service providers tremendous advantages in the market, over other competitors.

Overall, the two giants have pointed out a variety of points for contention that make sense and, if remedied, would be in the best interests of consumers. Foremost among demands were a call for the government to expedite the auctioning process of 3G licenses, currently being handled by the National Broadcasting and Telecommunications Commission (NBTC), and more concretely outline the future of the coveted technology.

To recap, the government painted a hopeful picture for the Kingdom's telecommunication industry with its K2 concession to license plan. The administration reasoned that the major switch was to level the playing ground of the trillion baht industry. The portrait was sullied, however, when the exciting 3G auction had its plug abruptly pulled with the suspicious reasons of legal loopholes and debatable authority.

As it stands, the combined clout of the nation's two largest mobile service providers will likely result in the changes the public both wants and needs. Does this mean Thailand's democratic health is in a good shape?

Though the push and pull of winner and loser is expected in democracy, in an evolved society it does not suffice to simply let the loudest voices win. In this instance, the interests of the two giants were shared by the less powerful, but this will not always be the case. It is the combined voice of the masses that appoints governments and it is their voices that must be listened to under the assertive shouts of the rich and powerfuls.

The government cannot simply wait for coincidences such as this given example to take place. It must realize its responsibility to think and act in the best interest of the nation and all its citizens, because they won't always have the shoulders of giants to stand on.

Bangkok Biz News, December 09 2010
Translated and Rewritten by Itiporn Lakarnchua

Please note that the views expressed in our "Analysis" segment are translated from local newspaper articles and do not reflect the views of the Thai-ASEAN News Network.

[StrontiumDog]

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1038366

PM Dismisses Claims of Telecom Favoritism

UPDATE : 9 December 2010

The prime minister has turned down claims that his government is failing to introduce a level ground for telecom operators.

His rejection follows an earlier press conference by two of the country’s major mobile phone service providers.

Prime Minister Abhisit Vejjajiva affirmed that his government is determined to treat all parties fairly in its move to promote the country’s telecommunication industry.

On Wednesday, Advanced Info Service or AIS and Total Access Communication or DTAC, which are Thailand’s number one and number two telecom providers, together called for clarification from the government about its telecom policy and its direction in the 3G technology concession bidding.

Both companies also called on the government to make sure that it is promoting a level ground for all related business operators.


Abhisit said the ICT Ministry will never play the favoritism card in handling telecom activities.

He also welcomed further inquiries, which may help assure all operators of the government’s determination.

The PM, however, said he is not sure what AIS in particular, expects from making such a scene, considering it has never been in touch with the government on any issues before.