Patrons can enjoy wireless freedom with 4 Mbps WiFi by TrueMove and 7.2 Mbps TrueMove 3G
True Corporation Pcl and Thai Asia Pacific Brewery (TAPB) have joined forces to offer unlimited online fun by installing TrueMove 3G and WiFi wireless access points at the ‘GreenSpace by Greyhound’ beer park at Zen World Tower, CentralWorld. The latest generation of telecommunication standards for mobile networking enables members to keep in touch, via their mobile handsets, with their friends online or upload their photos of Bangkok’s panoramic view from the beer park located on the top three floors of the tower building.
GreenSpace patrons can now update their impressions timely on Facebook or Twitter through TrueMove WiFi which runs at a maximum speed of 4 Mbps or TrueMove 3G which runs at up to 7.2 Mbps, 4 to 35 times faster than the previous 2G system.
A selection of WiFi cards are made available at the True booth set up at the ‘GreenSpace by Greyhound’. The beer park, which opens from 18.00 – 24.00 hrs, operates from November to December 2009 on Floors 18-20 of Zen World Tower @ Central World.
Friday, November 20, 2009
Friday, November 13, 2009
IBM Thailand launches LotusLive
IBM Thailand has launched its latest cloud-based offerings called LotusLive that brings web-based email, instant messaging, meetings, collaboration, social networking and project management to users over the Internet while keeping the best of enterprise grade security and privacy.
Jadesada Kraisingkorn, country manager IBM Software Group in Thailand,explained that IBM is playing at many levels in the cloud, from the actual hardware infrastructure, its CloudBurst management with flexible allocation and the top layer of solutions which is Lotus Live.
Unlike pure software-as-a-service vendors, IBM Lotus can deliver traditional on-premise,appliance (hardware preloaded with software) or cloud services.
Lotus Live delivers solutions in three key areas. The first group is messaging (email and instant messaging, called SameTime) and content management;second is communication and social networking, the art of linking people to people within a big organisation not just through work flow; and third is integration with corporate applications.
IBM stresses that while Lotus Live is not the first cloud email service, it is an enterprise-grade cloud email service with a strong focus on ownership of data,security and integration with the rest of the organisation.
Lotus Live Engage allows users to log in for meetings over the Internet where they can share screens and dashboards.Engage is a development of IBM's internal BlueHouse which was once showcased as a Facebook for the enterprise.
One of its strengths is the concept of guests. It is possible to give access to certain pages to outsiders without having to pay if they work on the project where they can share in collaboration and activities related to the project. Engage is integrated into work flow with meeting details kept along with transcripts and to-do lists on what was agreed from the meeting.
Then there is Lotus Live Events which is more one-way and focused on training and seminars.
The modules are built around Lotus Live Notes/iNotes which has email and calendaring and is integrate with all the other modules.
The big difference compared to other web-based office solutions is that Lotus Live has the concept of roles. In a typical organisation, the secretary of the boss will have her boss's password, which is very dangerous. In Lotus Live it is possible to delegate to the secretary such that she can read and create only but cannot delete, and any email sent out will be tagged sent on behalf of.
Unlike the paid-for competition, Lotus Live does not do data mining on user data and one of the spokespersons urged anyone using a certain free for up to 25 user competitor (clearly Google Apps)to check their fine print.
In January, IBM announced a partnership with salesforce.com that will turn Lotus Live activities into Salesforce opportunities where the progress of a sales lead can me monitored from Lotus Live's dashboards. Other partnerships exist with Skype for click to call and LinkedIn where files can be shared with people on linked in easily.
IBM Thailand is aiming the package at SMEs, selling it through partners and offering them IBM technology at an affordable price.
Jadesada Kraisingkorn, country manager IBM Software Group in Thailand,explained that IBM is playing at many levels in the cloud, from the actual hardware infrastructure, its CloudBurst management with flexible allocation and the top layer of solutions which is Lotus Live.
Unlike pure software-as-a-service vendors, IBM Lotus can deliver traditional on-premise,appliance (hardware preloaded with software) or cloud services.
Lotus Live delivers solutions in three key areas. The first group is messaging (email and instant messaging, called SameTime) and content management;second is communication and social networking, the art of linking people to people within a big organisation not just through work flow; and third is integration with corporate applications.
IBM stresses that while Lotus Live is not the first cloud email service, it is an enterprise-grade cloud email service with a strong focus on ownership of data,security and integration with the rest of the organisation.
Lotus Live Engage allows users to log in for meetings over the Internet where they can share screens and dashboards.Engage is a development of IBM's internal BlueHouse which was once showcased as a Facebook for the enterprise.
One of its strengths is the concept of guests. It is possible to give access to certain pages to outsiders without having to pay if they work on the project where they can share in collaboration and activities related to the project. Engage is integrated into work flow with meeting details kept along with transcripts and to-do lists on what was agreed from the meeting.
Then there is Lotus Live Events which is more one-way and focused on training and seminars.
The modules are built around Lotus Live Notes/iNotes which has email and calendaring and is integrate with all the other modules.
The big difference compared to other web-based office solutions is that Lotus Live has the concept of roles. In a typical organisation, the secretary of the boss will have her boss's password, which is very dangerous. In Lotus Live it is possible to delegate to the secretary such that she can read and create only but cannot delete, and any email sent out will be tagged sent on behalf of.
Unlike the paid-for competition, Lotus Live does not do data mining on user data and one of the spokespersons urged anyone using a certain free for up to 25 user competitor (clearly Google Apps)to check their fine print.
In January, IBM announced a partnership with salesforce.com that will turn Lotus Live activities into Salesforce opportunities where the progress of a sales lead can me monitored from Lotus Live's dashboards. Other partnerships exist with Skype for click to call and LinkedIn where files can be shared with people on linked in easily.
IBM Thailand is aiming the package at SMEs, selling it through partners and offering them IBM technology at an affordable price.
Sunday, November 8, 2009
CALL TO REQUIRE THAI-MADE EQUIPMENT FOR 3G ROLL-OUT
The national telecom watchdog yesterday was urged to include a requirement in the licence-auction guidelines to use locally made equipment in part of the third-generation network rollout. Former deputy transport minister Pinij Charusombat said otherwise only foreign suppliers would benefit fully from the network investment.
Pinij made the suggestion during a seminar in Bangkok entitled "3G and the Development of the Thai Capital Market", hosted by the Capital Market Academy.
He said this would enable local manufacturers to share in the benefits. Otherwise, Thais would gain only 20 per cent of the return from the 3G-network investment, with the rest going to foreign telecom-equipment suppliers. Although one of the banned Thai Rak Thai Party MPs, Pinij is believed to be a de-facto leader of the Puea Pandin Party.
He said veteran telecom operators should not be allowed to bid for the 3G 2.1-gigahertz licences, but rather only new entrants, which would promote real market competition.
One of two panellists, National Telecommunications Commission (NTC) commissioner Sethaporn Cusripituck, said the auction for the four 3G licences would spark huge investment. Each of the four winners will spend an estimated Bt50 billion on their network roll-out during the initial phase, thus encouraging investment and creating jobs.
The other panellist, NTC member Sudharma Yoonaidharma, said the NTC should first finish the main rules regulating the market in the post-3G era before granting the licences.
But he said the licences should be issued soon, to give telecom operators time to prepare for rolling out their 3G networks before their concessions ended. All private telecom operators' networks belong to their concession owners - TOT and CAT Telecom - under "built-transfer-operate" arrangements.
Stock Exchange of Thailand president Patareeya Benjapholchai said during the opening of the seminar that the combined market capitalisation of listed telecom firms was about Bt500 billion, accounting for 10.88 per cent of the combined market capitalisation of all listed firms.
In a separate matter, securities houses yesterday downgraded telecommunications stocks in the face of a possible further delay to the NTC's plan to auction the four 3G licences. During a meeting on Wednesday, economic ministers asked the NTC to consult with the Council of State about whether it had full authority to grant the new spectrum before proceeding with the auction plan. The watchdog agreed to do so.
The securities houses said the possible delay had affected the attractiveness of shares of three listed telecom operators: Advanced Info Service (AIS), Total Access Communication (DTAC) and True Corp, parent of True Move.
A Finansa Securities analyst recommended "sell" for True shares and shares remained "buy", thanks to a high dividend yield.
The analyst said telecommunications operators hoped 3G would drive their earnings growth. Without the licences, their earnings growth would not be as attractive for investors and stakeholders over the next three years.
An analyst at UOB Kay Hian Securities (Thailand) said that if the 3G-licence auction were postponed by six months to a year, operating costs would be affected. The licences are expected to reduce costs at least 10 per cent.
The NTC is expected to auction the licences next February. Many parties believe they will pave the way for the telecom concessionaires to migrate customers from the state concessions to the licensees, in order to save on regulatory costs.
Each of them pays about 25 per cent of their revenue on average as their concession fee, while the annual 3G-licence fee will cost 6.5 per cent of revenue.
Similar to Finansa, the UOB analyst also recommended "sell" for True shares and "hold" for DTAC but maintained a "buy" recommendation for AIS. AIS< DTAC and True all closed lower yesterday. DTAC declined 4.58 per cent to Bt36.50, AIS 1.17 per cent to Bt84.25 and True 2.79 per cent Bt2.79.
Pinij made the suggestion during a seminar in Bangkok entitled "3G and the Development of the Thai Capital Market", hosted by the Capital Market Academy.
He said this would enable local manufacturers to share in the benefits. Otherwise, Thais would gain only 20 per cent of the return from the 3G-network investment, with the rest going to foreign telecom-equipment suppliers. Although one of the banned Thai Rak Thai Party MPs, Pinij is believed to be a de-facto leader of the Puea Pandin Party.
He said veteran telecom operators should not be allowed to bid for the 3G 2.1-gigahertz licences, but rather only new entrants, which would promote real market competition.
One of two panellists, National Telecommunications Commission (NTC) commissioner Sethaporn Cusripituck, said the auction for the four 3G licences would spark huge investment. Each of the four winners will spend an estimated Bt50 billion on their network roll-out during the initial phase, thus encouraging investment and creating jobs.
The other panellist, NTC member Sudharma Yoonaidharma, said the NTC should first finish the main rules regulating the market in the post-3G era before granting the licences.
But he said the licences should be issued soon, to give telecom operators time to prepare for rolling out their 3G networks before their concessions ended. All private telecom operators' networks belong to their concession owners - TOT and CAT Telecom - under "built-transfer-operate" arrangements.
Stock Exchange of Thailand president Patareeya Benjapholchai said during the opening of the seminar that the combined market capitalisation of listed telecom firms was about Bt500 billion, accounting for 10.88 per cent of the combined market capitalisation of all listed firms.
In a separate matter, securities houses yesterday downgraded telecommunications stocks in the face of a possible further delay to the NTC's plan to auction the four 3G licences. During a meeting on Wednesday, economic ministers asked the NTC to consult with the Council of State about whether it had full authority to grant the new spectrum before proceeding with the auction plan. The watchdog agreed to do so.
The securities houses said the possible delay had affected the attractiveness of shares of three listed telecom operators: Advanced Info Service (AIS), Total Access Communication (DTAC) and True Corp, parent of True Move.
A Finansa Securities analyst recommended "sell" for True shares and shares remained "buy", thanks to a high dividend yield.
The analyst said telecommunications operators hoped 3G would drive their earnings growth. Without the licences, their earnings growth would not be as attractive for investors and stakeholders over the next three years.
An analyst at UOB Kay Hian Securities (Thailand) said that if the 3G-licence auction were postponed by six months to a year, operating costs would be affected. The licences are expected to reduce costs at least 10 per cent.
The NTC is expected to auction the licences next February. Many parties believe they will pave the way for the telecom concessionaires to migrate customers from the state concessions to the licensees, in order to save on regulatory costs.
Each of them pays about 25 per cent of their revenue on average as their concession fee, while the annual 3G-licence fee will cost 6.5 per cent of revenue.
Similar to Finansa, the UOB analyst also recommended "sell" for True shares and "hold" for DTAC but maintained a "buy" recommendation for AIS. AIS< DTAC and True all closed lower yesterday. DTAC declined 4.58 per cent to Bt36.50, AIS 1.17 per cent to Bt84.25 and True 2.79 per cent Bt2.79.
iPHONE ARRIVES IN CHINA WITHOUT KEY FEATURE
Apple's iPhone is making its long-awaited formal debut in the world's most populous mobile-phone market, without a key feature and at higher prices than widely available black-market models.
Apple's local service provider, China Unicom, hopes the iPhone will give it an edge against giant rival China Mobile, the world's biggest phone company by number of subscribers.
Unicom was to start selling iPhones equipped for third-generation (3G) services last week at 2,000 stores in areas as far-flung as Tibet. Chinese news reports said Unicom hoped to sell 5 million iPhones in three years, but the company declined to confirm that.
Unicom's first iPhones lack WiFi, a possible handicap with sophisticated, demanding Chinese buyers. The technology, a key part of the iPhone's appeal, allows owners in other markets to use wireless networks in cafes and offices to download e-mail and the latest applications, free of charge.
"There's going to be a perception that the phone they have is 'dumbed down' from the one that somebody has in California," said Duncan Clark, the chairman of Beijing-based technology-research firm BDA China.
"We've seen before that Chinese consumers don't like to be treated like second-class citizens."
Apple and Unicom could also face competition from an unusual source: unlocked iPhones brought in from abroad that have WiFi.
There are already an estimated 1.5 million to 2 million such phones in China using China Moile's 3G service that allows Internet access and other features.
Unicom's prices range from 4,999-6,999 yuan (Bt24,500 to Bt34,300) for the high-end, 32-gigabyte iPhone 3GS. That is 20-per-cent more than the 5,700 yuan charged by merchants at Chinese street markets for a 3GS with WiFi.
The iPhone's awkward, delayed entry into China reflects the regulatory and technical hudles of a fast-changing market where other global technology companies have struggled to establish themselves.
Unicom's iPhones lack WiFi because it was temporarily banned by Beijing, which was promoting a rival Chinese system, BDA said. The ban was relaxed in May after manufacturing had begun.
A Unicom spokesman, YiDifei, said the company hoped to have WiFi in the next batch of phones.
"We are talking with apple and expect the problem to be solved by the end of this year," Yi said.
The iPhone debuted in the United States in June 2007, but its formal arrival in China was delayed as Apple negotiated with service providers. Chinese media said the talks were snagged on disagreements about how revenue should be divided.
China has more than 650 million mobile-phone accounts despite an average annual income of only US$3,000 (Bt100,000) per person. Consumers trade in phones as often as several times a year to obtain the latest models and features.
China Unicom has 143 million modile accounts, which would be an impressive figure in any other market but lags far behind China's Mobile's 508 million accoutns.
Global technology companies that dominate other markets have struggled to obtain a foothold in China. Search engine Google has less than 30 per cent of the market, against more than 60 per cent for local rival Baidu. Yahoo turned over its Chinese operation to a local partner after failing to expand its market share.
China's state-owned phone companies were restructured by the government into three groups last year in hopes of reviving competition after the explosive popularity of mobile services turned China Mobile into a behemoth.
Apple's local service provider, China Unicom, hopes the iPhone will give it an edge against giant rival China Mobile, the world's biggest phone company by number of subscribers.
Unicom was to start selling iPhones equipped for third-generation (3G) services last week at 2,000 stores in areas as far-flung as Tibet. Chinese news reports said Unicom hoped to sell 5 million iPhones in three years, but the company declined to confirm that.
Unicom's first iPhones lack WiFi, a possible handicap with sophisticated, demanding Chinese buyers. The technology, a key part of the iPhone's appeal, allows owners in other markets to use wireless networks in cafes and offices to download e-mail and the latest applications, free of charge.
"There's going to be a perception that the phone they have is 'dumbed down' from the one that somebody has in California," said Duncan Clark, the chairman of Beijing-based technology-research firm BDA China.
"We've seen before that Chinese consumers don't like to be treated like second-class citizens."
Apple and Unicom could also face competition from an unusual source: unlocked iPhones brought in from abroad that have WiFi.
There are already an estimated 1.5 million to 2 million such phones in China using China Moile's 3G service that allows Internet access and other features.
Unicom's prices range from 4,999-6,999 yuan (Bt24,500 to Bt34,300) for the high-end, 32-gigabyte iPhone 3GS. That is 20-per-cent more than the 5,700 yuan charged by merchants at Chinese street markets for a 3GS with WiFi.
The iPhone's awkward, delayed entry into China reflects the regulatory and technical hudles of a fast-changing market where other global technology companies have struggled to establish themselves.
Unicom's iPhones lack WiFi because it was temporarily banned by Beijing, which was promoting a rival Chinese system, BDA said. The ban was relaxed in May after manufacturing had begun.
A Unicom spokesman, YiDifei, said the company hoped to have WiFi in the next batch of phones.
"We are talking with apple and expect the problem to be solved by the end of this year," Yi said.
The iPhone debuted in the United States in June 2007, but its formal arrival in China was delayed as Apple negotiated with service providers. Chinese media said the talks were snagged on disagreements about how revenue should be divided.
China has more than 650 million mobile-phone accounts despite an average annual income of only US$3,000 (Bt100,000) per person. Consumers trade in phones as often as several times a year to obtain the latest models and features.
China Unicom has 143 million modile accounts, which would be an impressive figure in any other market but lags far behind China's Mobile's 508 million accoutns.
Global technology companies that dominate other markets have struggled to obtain a foothold in China. Search engine Google has less than 30 per cent of the market, against more than 60 per cent for local rival Baidu. Yahoo turned over its Chinese operation to a local partner after failing to expand its market share.
China's state-owned phone companies were restructured by the government into three groups last year in hopes of reviving competition after the explosive popularity of mobile services turned China Mobile into a behemoth.
Tuesday, October 20, 2009
TOT, CAT TOLD TO FOCUS ON STRENGTHS
The state-enterprise administrator has suggested that TOT and CAT Telecom focus on what they do best, providing telecom network services, instead of competing in the retail cellular market.
Kulit Sombatsiri, deputy director of the State Enterprise Policy Committee, said the Finance Ministry had clearly established that TOT and CAT are to be the state's mechanism of providing and developing the country's basic telecom infrastructure.
Headded that both entities should focus on their areas of expertise. TOT has years of experience in providing a fixed-line telecom network, therefore it should mainly focus on further developing broadband and fibreoptic networks. CAT has been the primary provider of overseas call services, therefore it should focus on further enhancing this market. He said both state agencies should review their services to see if they can perform better than the private sector.
Kulit made the remarks during a seminar "The Survival Direction of the Country's Telecommunications Industry", hosted yesterday by the Senate's science and communications technology committee. The seminar is part of the committee's plan to find ways to help TOT and CAT improve their competitiveness.
Anant Worathitipong, vice chairman of the panel, said that TOT and CAT should make their minds up whether they want to concentrate on the country's network infrastructure or compete with the private sector. it would be difficult to be successful in both.
Poomjai Attanant, director of the Infrastructure Project Office of the National Economic and Social Development Board (NESDB), added that both agencies should also be working on plans on how to fully utilise the existing network assets worth a combined Bt300 billion after concessions end in the next few years.
TOT's senior executive vice president Kittipong Tameyapradit said TOT was ready to be a network provider. It has allowed interested companies to propose to lease its upcoming 3G network in greater Bangkok to provide retail services.
However, he want the government to amend the relevant operation and procurement regulations to enable TOT to work faster and operate on a more efficient basis. Kulit said TOT and CAT could develop their own flexible procurement regulations and submit them for approval of the Office of the Auditor-General.
CAT senior executive vice president Kittipong Mekvichitseang said CAT had been improving its operating efficiency to be able to compete with private competitors, but its main abstacle was inflexible procurement regulations.
He added that TOT and CAT might experience problems making profits if they limit their roles to merely leasing the networks. Therefore, both agencies should do both-provide the network services and compete in the retail cellular sector.
Weera Burankitcharoen, a subcommitee member of the Senate's science and communications panel, said the government should amend the regulations controlling TOT and CAT to allow them to fully compete with private companies.
It has to ensure that the appointment of their board members and chief executives is free from political interference, he added.
Kulit Sombatsiri, deputy director of the State Enterprise Policy Committee, said the Finance Ministry had clearly established that TOT and CAT are to be the state's mechanism of providing and developing the country's basic telecom infrastructure.
Headded that both entities should focus on their areas of expertise. TOT has years of experience in providing a fixed-line telecom network, therefore it should mainly focus on further developing broadband and fibreoptic networks. CAT has been the primary provider of overseas call services, therefore it should focus on further enhancing this market. He said both state agencies should review their services to see if they can perform better than the private sector.
Kulit made the remarks during a seminar "The Survival Direction of the Country's Telecommunications Industry", hosted yesterday by the Senate's science and communications technology committee. The seminar is part of the committee's plan to find ways to help TOT and CAT improve their competitiveness.
Anant Worathitipong, vice chairman of the panel, said that TOT and CAT should make their minds up whether they want to concentrate on the country's network infrastructure or compete with the private sector. it would be difficult to be successful in both.
Poomjai Attanant, director of the Infrastructure Project Office of the National Economic and Social Development Board (NESDB), added that both agencies should also be working on plans on how to fully utilise the existing network assets worth a combined Bt300 billion after concessions end in the next few years.
TOT's senior executive vice president Kittipong Tameyapradit said TOT was ready to be a network provider. It has allowed interested companies to propose to lease its upcoming 3G network in greater Bangkok to provide retail services.
However, he want the government to amend the relevant operation and procurement regulations to enable TOT to work faster and operate on a more efficient basis. Kulit said TOT and CAT could develop their own flexible procurement regulations and submit them for approval of the Office of the Auditor-General.
CAT senior executive vice president Kittipong Mekvichitseang said CAT had been improving its operating efficiency to be able to compete with private competitors, but its main abstacle was inflexible procurement regulations.
He added that TOT and CAT might experience problems making profits if they limit their roles to merely leasing the networks. Therefore, both agencies should do both-provide the network services and compete in the retail cellular sector.
Weera Burankitcharoen, a subcommitee member of the Senate's science and communications panel, said the government should amend the regulations controlling TOT and CAT to allow them to fully compete with private companies.
It has to ensure that the appointment of their board members and chief executives is free from political interference, he added.
Thursday, October 15, 2009
OBSTACLE COURSE AHEAD OF NTC ON 3G LICENSING
The national telecom regulator faces a host of obstacles that could derail its plan to auction four 3G-2.1GHz spectrum licences in December.
One of the hurdles is whether the National Telecommunications Commission has the authority to grant the licences.
Recently Pornchai Meemak, a former member of the TOT labour union, filed a lawsuit against the NTC at the Central Administrative Court. He argued it was the authority of the broadcasting and telecom regulators to jointly allocate the new spectrum licences, and not that of the NTC alone.
The court has yet to accept the case, but Pornchai said his move suggested the NTC could face a spate of lawsuits if it pressed ahead with the auction of the 3G licences.
The question of NTC's licensing authority has haunted the watchdog since 2005, when the Central Administrative Court nullified the process of selecting 14 candidates for the seven seats on the National Broadcasting Commission (NBC), citing unconstitutionality.
The frequency allocation law mandates that a joint quorum of the NTC and the NBC is needed to draw up the telecom and broadcasting spectrum table and prescribe the use of the spectra.
In 2006, the watchdog consulted the Council of State over whether it has the authority to grant the new spectra without the NBC. The council said the NTC might be able to do so by referring to the spectrum table of the International Telecom Union in drawing its own table.
However, the Lawyers Council of Thailand recently pointed out that the council's ruling was delivered in 2006, before the inception of the 2007 Constitution, which mandates the establishment of a new and single broadcasting and telecommunications regulator.
The establishment of the single watchdog has therefore added a new question of whether it is more appropriate for the NTC to let the new entity grant the new spectrum licences.
The NTC plans to consult with the Council of State again on the question of its licensing authority.
Moreover, it has been suggested that it would be more appropriate for the NTC to wait for its four new members to take office first before it proceeds with the auction.
The two NTC member selection panels recently completed the processes of selecting a combined eight candidates to replace the four incumbent commissioners. The Senate might be able to appoint four of them to the NTC seats before the parliamentary session ends in November.
One commissioner, Artorn Chandavimol, resigned from the post before his term ended. Three other NTC members were then balloted out from the seats in 2006 after three years in office, in accordance with the frequency allocation law. However, these three remain in office until they are replaced.
Telecom industry observers said the new commissioners might ask to review or even delay the auction plan.
The private and state sectors have also said the planned auction process and conditions would financially hurt TOT and CAT Telecom and favour cash-rich firms - especially those with state foreign shareholders - over smaller players.
One auction condition requires the bid winners to pay for the licences on a one-off basis, instead of by instalment. The NTC argues that the ability to pay in this way suggested a bidder's capacity to substantially develop a cash-hungry 3G business.
TOT has strongly opposed the licensing, saying that it would pave way for the private mobile concessions to migrate subscribers from the existing concessions to the 3G licences in order to save on regulatory costs. This would lead to a decline in its concession revenue.
TOT received Bt19 billion in concession fees from Advanced Info Service last year.
A major point of contention is that the auction would pave the way for foreign state telecom firms that are major shareholders in Thai telecom operators to grab the precious 3G licences and dominate the Thai market.
The NTC argued that it would refer to the Foreign Business Act and the Telecom Business Act when selecting the qualified 3G licence bidders. The two laws each limit foreign telecom companies' shareholdings in Thai telecom firms at 49 per cent.
Another key criticism is that the bid winners, after spending heavily to get the licences in the auction, would later pass on the cost to 3G users by imposing high service charges.
A telecom scholar has argued, however, that the NTC has the authority to set a maximum service fee.
One of the hurdles is whether the National Telecommunications Commission has the authority to grant the licences.
Recently Pornchai Meemak, a former member of the TOT labour union, filed a lawsuit against the NTC at the Central Administrative Court. He argued it was the authority of the broadcasting and telecom regulators to jointly allocate the new spectrum licences, and not that of the NTC alone.
The court has yet to accept the case, but Pornchai said his move suggested the NTC could face a spate of lawsuits if it pressed ahead with the auction of the 3G licences.
The question of NTC's licensing authority has haunted the watchdog since 2005, when the Central Administrative Court nullified the process of selecting 14 candidates for the seven seats on the National Broadcasting Commission (NBC), citing unconstitutionality.
The frequency allocation law mandates that a joint quorum of the NTC and the NBC is needed to draw up the telecom and broadcasting spectrum table and prescribe the use of the spectra.
In 2006, the watchdog consulted the Council of State over whether it has the authority to grant the new spectra without the NBC. The council said the NTC might be able to do so by referring to the spectrum table of the International Telecom Union in drawing its own table.
However, the Lawyers Council of Thailand recently pointed out that the council's ruling was delivered in 2006, before the inception of the 2007 Constitution, which mandates the establishment of a new and single broadcasting and telecommunications regulator.
The establishment of the single watchdog has therefore added a new question of whether it is more appropriate for the NTC to let the new entity grant the new spectrum licences.
The NTC plans to consult with the Council of State again on the question of its licensing authority.
Moreover, it has been suggested that it would be more appropriate for the NTC to wait for its four new members to take office first before it proceeds with the auction.
The two NTC member selection panels recently completed the processes of selecting a combined eight candidates to replace the four incumbent commissioners. The Senate might be able to appoint four of them to the NTC seats before the parliamentary session ends in November.
One commissioner, Artorn Chandavimol, resigned from the post before his term ended. Three other NTC members were then balloted out from the seats in 2006 after three years in office, in accordance with the frequency allocation law. However, these three remain in office until they are replaced.
Telecom industry observers said the new commissioners might ask to review or even delay the auction plan.
The private and state sectors have also said the planned auction process and conditions would financially hurt TOT and CAT Telecom and favour cash-rich firms - especially those with state foreign shareholders - over smaller players.
One auction condition requires the bid winners to pay for the licences on a one-off basis, instead of by instalment. The NTC argues that the ability to pay in this way suggested a bidder's capacity to substantially develop a cash-hungry 3G business.
TOT has strongly opposed the licensing, saying that it would pave way for the private mobile concessions to migrate subscribers from the existing concessions to the 3G licences in order to save on regulatory costs. This would lead to a decline in its concession revenue.
TOT received Bt19 billion in concession fees from Advanced Info Service last year.
A major point of contention is that the auction would pave the way for foreign state telecom firms that are major shareholders in Thai telecom operators to grab the precious 3G licences and dominate the Thai market.
The NTC argued that it would refer to the Foreign Business Act and the Telecom Business Act when selecting the qualified 3G licence bidders. The two laws each limit foreign telecom companies' shareholdings in Thai telecom firms at 49 per cent.
Another key criticism is that the bid winners, after spending heavily to get the licences in the auction, would later pass on the cost to 3G users by imposing high service charges.
A telecom scholar has argued, however, that the NTC has the authority to set a maximum service fee.
Tuesday, October 13, 2009
CAT ANGRY OVER LAWSUIT, SET TO PULL CONCESSION FROM TRUE MOVE
CAT Telecom has threatened to terminate the concession contract of its private mobile concession True Move, citing lack of good faith and its recent filing of a lawsuit against CAT.
CAT executive chairman Krisda Kaveeyarn said yesterday that under the concession contract, CAT could terminate the True Move concession if it caused any damage to the state concession owner.
The state agency might also decide not to allow True Move to lease CAT's network for an additional five years after True Move's concession ends in the next four years. It might also disallow True Move from using its 850 MHz spectrum to provide 3G wireless broadband service on a trial basis, he added.
True Move and Total Access Communication (DTAC) have both provided the 3G service on their existing 850 MHz spectrum on a trial basis with permission from CAT.
The threatening move from CATcame after True Move filed a civil case against CAT and also the state agency's two executives on September 24 to demand compensation of Bt50 million, citing that CAT had caused damage to True Move's image.
True Move said CAT has declined to return its bank guarantee regarding the minimum concession fee it had paid to CAT during the past three years. The CAT declined to return such guarantee amount later makes four banks from which it regularly seek bank guarantees decline to continue to provide the bank guarantee to True Move this year for paying such concession revenue minimum guarantee to CAT.
CAT explained it had to seize True Move's bank guarantee as the service provider had declined to pay the full concession fee to CAT and had instead deducted the interconnection fee. Therefore, CAT had seized the company's bank guarantee of Bt 350 million in 2006, Bt380 million in 2007, and Bt580 million in 2008. True Move has to pay the minimum concession fee guarantee of Bt640 million this year.
CAT also held back DTAC's bank guarantee as DTAC had deducted the interconnection fee from the concession fee first before paying the remaining concession fee to CAT. But banks still provide bank guarantee to DTAC on the matter due to its healthy financial status.
True Move's chief executive officer Supachai Chearavanont said the company has no intention to be in conflict with CAT but the company had to let the court decide the case for the good of both sides.
Currently True Move is engaged in seven legal cases with CAT. Six of them are cases CAT has filed against True Move with the Arbitration Panel, while the one has been filed by True Move against CAT.
The CAT board yesterday ordered the state agency's chief executive officer Jirayuth Rungsrithong to talk to True Move on how they could proceed with the cases.
Among the cases CAT has filed against True Move is the telecom excise tax. In 2006, the Thaksin Shinawatra government issued an executive decree to order all private fixed-line operators and cellular operators to pay part of the concession fee as the excise tax first before paying the remaining concession fee amount to their state concession owners CAT and TOT. This affected the concession revenue of TOT and CAT as earlier they had gained the full concession fee amount from the private concessions. However, the next government terminated the telecom excise tax in 2007. CAT asked True Move to pay the concession fee of Bt6 billion, which is the amount the company paid as telecom excise tax.
CAT senior executive Hansa Chivapruek said that the stage agency had already asked the Council of State in September to rule if it could allow private mobile concessionaires to offer the 3G service on commercial basis on their existing 850 MHz spectrum. If the Council of State rules it is permissible, CAT would allow True Move and DTAC to provide such service commercially.
But Krisda said that as True Move has already filed a lawsuit against CAT for damaging its image, CAT might not support the company in the matter.
"We don't want the company without good faith to do business with us," he added.
CAT executive chairman Krisda Kaveeyarn said yesterday that under the concession contract, CAT could terminate the True Move concession if it caused any damage to the state concession owner.
The state agency might also decide not to allow True Move to lease CAT's network for an additional five years after True Move's concession ends in the next four years. It might also disallow True Move from using its 850 MHz spectrum to provide 3G wireless broadband service on a trial basis, he added.
True Move and Total Access Communication (DTAC) have both provided the 3G service on their existing 850 MHz spectrum on a trial basis with permission from CAT.
The threatening move from CATcame after True Move filed a civil case against CAT and also the state agency's two executives on September 24 to demand compensation of Bt50 million, citing that CAT had caused damage to True Move's image.
True Move said CAT has declined to return its bank guarantee regarding the minimum concession fee it had paid to CAT during the past three years. The CAT declined to return such guarantee amount later makes four banks from which it regularly seek bank guarantees decline to continue to provide the bank guarantee to True Move this year for paying such concession revenue minimum guarantee to CAT.
CAT explained it had to seize True Move's bank guarantee as the service provider had declined to pay the full concession fee to CAT and had instead deducted the interconnection fee. Therefore, CAT had seized the company's bank guarantee of Bt 350 million in 2006, Bt380 million in 2007, and Bt580 million in 2008. True Move has to pay the minimum concession fee guarantee of Bt640 million this year.
CAT also held back DTAC's bank guarantee as DTAC had deducted the interconnection fee from the concession fee first before paying the remaining concession fee to CAT. But banks still provide bank guarantee to DTAC on the matter due to its healthy financial status.
True Move's chief executive officer Supachai Chearavanont said the company has no intention to be in conflict with CAT but the company had to let the court decide the case for the good of both sides.
Currently True Move is engaged in seven legal cases with CAT. Six of them are cases CAT has filed against True Move with the Arbitration Panel, while the one has been filed by True Move against CAT.
The CAT board yesterday ordered the state agency's chief executive officer Jirayuth Rungsrithong to talk to True Move on how they could proceed with the cases.
Among the cases CAT has filed against True Move is the telecom excise tax. In 2006, the Thaksin Shinawatra government issued an executive decree to order all private fixed-line operators and cellular operators to pay part of the concession fee as the excise tax first before paying the remaining concession fee amount to their state concession owners CAT and TOT. This affected the concession revenue of TOT and CAT as earlier they had gained the full concession fee amount from the private concessions. However, the next government terminated the telecom excise tax in 2007. CAT asked True Move to pay the concession fee of Bt6 billion, which is the amount the company paid as telecom excise tax.
CAT senior executive Hansa Chivapruek said that the stage agency had already asked the Council of State in September to rule if it could allow private mobile concessionaires to offer the 3G service on commercial basis on their existing 850 MHz spectrum. If the Council of State rules it is permissible, CAT would allow True Move and DTAC to provide such service commercially.
But Krisda said that as True Move has already filed a lawsuit against CAT for damaging its image, CAT might not support the company in the matter.
"We don't want the company without good faith to do business with us," he added.
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