On hold, as usual
http://www.bangkokpost.com/300608_Business/30Jun20 [2008-7-1]
Tag : Telecom Cabinet
Thailand's telecommunications industry continues to be a casualtyof politics, to the point that poor neighbours Laos and Cambodiatoday can even boast some technologies and services that Thailandlacks.
Attempts to develop third-generation or 3G mobile services inThailand began several years ago but only this year were the firstbaby steps take. The excuse, as it has been for nearly 10 yearsnow, was the lack of a national regulator to oversee the convergedfields of telecoms and broadcasting.
The four-year-old National Telecommunications Commission (NTC) hassteered the industry with some success, but refuses to issue 3Glicences because they involve a broadcasting component that it isnot in a position to regulate. This was supposed to be the job ofthe National Broadcasting Commission or NBC, which has never beenformed.
However, in the new environment stipulated by the FrequencyManagement Bill, a single regulator will handle bothtelecommunications and broadcasting licensing. It merge theexisting NTC into a new National Broadcasting andTelecommunications Commission (NBTC).
The NBTC will have 10 members _ two each from radio and television,four from telecommunications, and two qualified experts. Thecabinet will nominate the NBTC and then forward the names to theSenate for approval. The NBTC will then become the single nationalregulator under the present Constitution. The process is supposedto take three months. Then again, forming the NTC was supposed totake three months as well _ and that was back in 1998.
Because the bill is still undergoing legislative procedures, theNTC will do the job of drawing up the 3G licensing framework andallow operators to upgrade their networks using existing bandwidth.
The 3G licensing regulation is expected within the third quarter ofthis year.
NTC member Sethaporn Cusripituck said the regulator had received apositive interpretation from the Council of State, the government'slegal adviser, on guidelines for telecom licensing.
In addition, the Council of State also said that since the NTCstill did not have a table of frequency allocations, it could usethe frequency allocation table of the InternationalTelecommunications Union as a guideline.
The NTC has hired a British telecom consulting firm to study theThai industry and devise a frequency table for allocation tooperators to provide 3G services. The result of the study wasexpected at the end of June.
Thai Mobile, the struggling cellular joint venture of TOT and CATTelecom, was allocated frequencies under the 2000 MHz spectrum toprovide 3G since 1999. But Thai Mobile today is six billion baht indebt and the two state telecoms are still arguing about a sale thatwould allow one of them to control the business.
Political intervention in the boards of directors of both TOT andCAT Telecom was blamed on the failure of Thai Mobile in the past,as well as the huge interest that was involved in the operations.
But the current political instability could become a majordeterrent to the smooth migration to 3G or mobile broadbandservices again.
Information and Communication Technology Minister Mun Patanotai hasadmitted that politics was main reason for a lack of progress, aswell as disputes between state telecoms and their privateconcessionaires.
But he made clear that he would push for mobile broadband serviceswithin the next six to 12 months _ if the current governmentsurvives.
However, Mr Mun has given hope to private operators, who are takingtentative steps toward 3G while they wait for the legal andregulatory fog to lift.
Mr Mun admitted that TOT Plc and CAT Telecom could never competewith private operators in bringing out 3G services, citing theentangled laws and regulations on joint investment.
He pointed to Thai Mobile, held 58% by TOT and 42% by CAT, whichhas gone nowhere for six years _ it has fewer than 60,000 customersin a market of 55 million.
THis month CAT offered to buy back the 58% stake from TOT at 3.3billion baht with payment over five years, countering TOT to buyCAT's 42% stake at 2.4 billion baht but with payment spanning 15years. TOT subsequently offered a five-year repayment term butthere have been no fresh negotiations.
The failure of Thai Mobile as a cellular service aside, it hashighly valuable 3G bandwidth and a licence, with no need to awaitNTC licensing. But even if 3G could be launched by a state telecom,questions persist about the joint-venture model and the strategicpartners.
Advanced Info Service became the first to launch commercial testsof 3G
on the HSPA platform in Chiang Mai.
It was also awaiting permission to
import more HSPA equipment to expand services in other majorcities, including Bangkok.
DTAC and True Move received permits to import HSPA only recently,or several months behind AIS, due to red tape in CAT which wantedthem to accept three conditions first.
All of the conditions were accepted by DTAC and True Move: theymust operate international direct dialling service using CAT'sinternational gateway; DTAC has to allocate some of its 850 MHzbandwidth to CAT; and that they have to promote CAT services on theHSPA platform.
But although the private operators are jumping on the 3G bandwagon,they are reluctant to invest heavily due to the many restrictionson HSPA technology running on the existing networks.
AIS has made clear it would not invest further, while DTAC also waslikely to await for new licensing that would be much moreinvestment-worthy than just upgrading its present network toprovide 3G services.
Thailand's telecommunications industry continues to be a casualtyof politics, to the point that poor neighbours Laos and Cambodiatoday can even boast some technologies and services that Thailandlacks.
Attempts to develop third-generation or 3G mobile services inThailand began several years ago but only this year were the firstbaby steps take. The excuse, as it has been for nearly 10 yearsnow, was the lack of a national regulator to oversee the convergedfields of telecoms and broadcasting.
The four-year-old National Telecommunications Commission (NTC) hassteered the industry with some success, but refuses to issue 3Glicences because they involve a broadcasting component that it isnot in a position to regulate. This was supposed to be the job ofthe National Broadcasting Commission or NBC, which has never beenformed.
However, in the new environment stipulated by the FrequencyManagement Bill, a single regulator will handle bothtelecommunications and broadcasting licensing. It merge theexisting NTC into a new National Broadcasting andTelecommunications Commission (NBTC).
The NBTC will have 10 members _ two each from radio and television,four from telecommunications, and two qualified experts. Thecabinet will nominate the NBTC and then forward the names to theSenate for approval. The NBTC will then become the single nationalregulator under the present Constitution. The process is supposedto take three months. Then again, forming the NTC was supposed totake three months as well _ and that was back in 1998.
Because the bill is still undergoing legislative procedures, theNTC will do the job of drawing up the 3G licensing framework andallow operators to upgrade their networks using existing bandwidth.
The 3G licensing regulation is expected within the third quarter ofthis year.
NTC member Sethaporn Cusripituck said the regulator had received apositive interpretation from the Council of State, the government'slegal adviser, on guidelines for telecom licensing.
In addition, the Council of State also said that since the NTCstill did not have a table of frequency allocations, it could usethe frequency allocation table of the InternationalTelecommunications Union as a guideline.
The NTC has hired a British telecom consulting firm to study theThai industry and devise a frequency table for allocation tooperators to provide 3G services. The result of the study wasexpected at the end of June.
Thai Mobile, the struggling cellular joint venture of TOT and CATTelecom, was allocated frequencies under the 2000 MHz spectrum toprovide 3G since 1999. But Thai Mobile today is six billion baht indebt and the two state telecoms are still arguing about a sale thatwould allow one of them to control the business.
Political intervention in the boards of directors of both TOT andCAT Telecom was blamed on the failure of Thai Mobile in the past,as well as the huge interest that was involved in the operations.
But the current political instability could become a majordeterrent to the smooth migration to 3G or mobile broadbandservices again.
Information and Communication Technology Minister Mun Patanotai hasadmitted that politics was main reason for a lack of progress, aswell as disputes between state telecoms and their privateconcessionaires.
But he made clear that he would push for mobile broadband serviceswithin the next six to 12 months _ if the current governmentsurvives.
However, Mr Mun has given hope to private operators, who are takingtentative steps toward 3G while they wait for the legal andregulatory fog to lift.
Mr Mun admitted that TOT Plc and CAT Telecom could never competewith private operators in bringing out 3G services, citing theentangled laws and regulations on joint investment.
He pointed to Thai Mobile, held 58% by TOT and 42% by CAT, whichhas gone nowhere for six years _ it has fewer than 60,000 customersin a market of 55 million.
THis month CAT offered to buy back the 58% stake from TOT at 3.3billion baht with payment over five years, countering TOT to buyCAT's 42% stake at 2.4 billion baht but with payment spanning 15years. TOT subsequently offered a five-year repayment term butthere have been no fresh negotiations.
The failure of Thai Mobile as a cellular service aside, it hashighly valuable 3G bandwidth and a licence, with no need to awaitNTC licensing. But even if 3G could be launched by a state telecom,questions persist about the joint-venture model and the strategicpartners.
Advanced Info Service became the first to launch commercial testsof 3G
on the HSPA platform in Chiang Mai.
It was also awaiting permission to
import more HSPA equipment to expand services in other majorcities, including Bangkok.
DTAC and True Move received permits to import HSPA only recently,or several months behind AIS, due to red tape in CAT which wantedthem to accept three conditions first.
All of the conditions were accepted by DTAC and True Move: theymust operate international direct dialling service using CAT'sinternational gateway; DTAC has to allocate some of its 850 MHzbandwidth to CAT; and that they have to promote CAT services on theHSPA platform.
But although the private operators are jumping on the 3G bandwagon,they are reluctant to invest heavily due to the many restrictionson HSPA technology running on the existing networks.
AIS has made clear it would not invest further, while DTAC also waslikely to await for new licensing that would be much moreinvestment-worthy than just upgrading its present network toprovide 3G services.
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