3G Broadband progress in Thailand hits legal uncertainties
By Jon Fernquest
Uncertainty
is currently the prevailing
mood in
Thailand's telecommunications sector. Recently, there have been positive developments.
The National Telecommunications Commission (NTC) has called for 3G auctions, an essential first-step for widespread rural broadband access, a top policy priority of the Abhisit government.
Funds from the Thai Khem Kaeng stage II fiscal stimulus programme have been allocated for improved broadband access.
These positive developments may not last long.
TAT and CAT Thailand's two gigantic telecommunications monopolies stand to lose large amounts of concession fees if mobile phone companies move to 3G, so there are moves to block the issuing of 3G licenses.
Today's article gives the details and begins after the vocabulary:
3G
- third generation mobile phone, the next level of
mobile phone services beyond the current second generation (2G),
supports broadband internet, supports greater numbers of voice and data
customers especially in urban areas (See Wikipedia on 3G)
broadband - high-speed data transmission used for high-speed Internet access, fast enough to support applications such as streaming video
widespread rural broadband access - fast internet is available for most people in rural areas (like electricity is available for almost everyone)
the prevailing mood - the way that people feel nowadays about some issue
National Telecommunications Commission (NTC) - the first independent state telecommunications regulator in Thailand, regulates all telecommunications services, formulates a master plan, sets criteria and categories of telecommunications services, permits and regulates the use of spectrum for telecommunications services and grants licenses to telecommunications operators (See websitepolicy)
auction - selling things by competitive bids, selling to the person who offers that best price (See Wikipedia)
fiscal stimulus - temporary increases in government spending and tax cutes to get the economy moving and growing again after a recession
X stands to lose if Y - if Y happens then X will lose
concession - official permission from the government to do a certain type of business
concession fees - money paid to the government to do a special business
a license - permission from the government to operate a limited business
3G licenses - permission from the government to offer 3G services
issue 3G licenses - when the government officially gives permission to a company to offer 3G services
block the issuing of 3G licenses - prevent the government from giving permision to offer 3G services
broadband - high-speed data transmission used for high-speed Internet access, fast enough to support applications such as streaming video
widespread rural broadband access - fast internet is available for most people in rural areas (like electricity is available for almost everyone)
the prevailing mood - the way that people feel nowadays about some issue
National Telecommunications Commission (NTC) - the first independent state telecommunications regulator in Thailand, regulates all telecommunications services, formulates a master plan, sets criteria and categories of telecommunications services, permits and regulates the use of spectrum for telecommunications services and grants licenses to telecommunications operators (See websitepolicy)
auction - selling things by competitive bids, selling to the person who offers that best price (See Wikipedia)
fiscal stimulus - temporary increases in government spending and tax cutes to get the economy moving and growing again after a recession
X stands to lose if Y - if Y happens then X will lose
concession - official permission from the government to do a certain type of business
concession fees - money paid to the government to do a special business
a license - permission from the government to operate a limited business
3G licenses - permission from the government to offer 3G services
issue 3G licenses - when the government officially gives permission to a company to offer 3G services
block the issuing of 3G licenses - prevent the government from giving permision to offer 3G services
Telecommunications
NTC faces 3G challenge
TOT questions legality of 3G licensingKomsan Tortermvasana
Business Reporter
28/09/2009
On the eve of a public hearing today on third-generation (3G) mobile broadband licences, TOT Plc is challenging the legal authority of the National Telecommunications Commission (NTC) to call auctions for the long-awaited licences.
As well, Anuparb Thiralarp, an academic and independent telecom expert, said the NTC was exceeding its role even though the Council of State has concluded that the regulator could allocate radio spectrum for the services.
He said a favourable interpretation by the government's legal advisory body did not mean that it would always be right if it were challenged later in court.
Some earlier council interpretations had been overturned by the courts. For example, the courts recently ruled illegal an agreement with Cambodia on the Preah Vihear temple, creating new headaches for the current government, Dr Anuparb said.
The council has also advised that cabinet ministers could cast votes for the new budget bill, but no minister dared heed its advice for fear of removal from the job later, he said.
On the eve of Y - happening
just before Y, on the day before Y happens
the public - all the people (not a limited private group)
a public hearing - a public meeting were ordinary people can express their opinion on important laws and policies
3G licensing - permission given to a telephone company to provide 3G telephone service
third-generation (3G) mobile broadband licences - permission to offer 3G service for mobile phones
authority, legal authority - the power to make decisions and issue orders
challenging the legal authority of Y- trying to get a higher authority to take away the legal authority of Y
telecom, telecommunications - the technology of sending messages and communicating over long distances, for example by telephone and radio
independent telecom expert - an expert on electronics communications technology who does not work for a telecom company
the role of Y in X - the tasks that y does in project or activity X
exceeding its role - doing more than they are supposed to do
Council of State - the group of legal advisors that provides advice to the Prime Minister's cabinet on the legality of actions they are planning to take
spectrum, frequencies - parts of the limited electromagnetic spectrum that is used for radio, mobile phones, and TV broadcasting
allocate - divide up something and giving it to people
allocate radio spectrum, allocate frequencies - divide up frequencies (and assign to different uses and companies)
a favourable interpretation - when the court decides that the law favours them
challenged later in court - when the
cast votes for the new budget bill - vote for the proposed budget in parliament
dared heed its advice - were brave enough to do what they suggested
the public - all the people (not a limited private group)
a public hearing - a public meeting were ordinary people can express their opinion on important laws and policies
3G licensing - permission given to a telephone company to provide 3G telephone service
third-generation (3G) mobile broadband licences - permission to offer 3G service for mobile phones
authority, legal authority - the power to make decisions and issue orders
challenging the legal authority of Y- trying to get a higher authority to take away the legal authority of Y
telecom, telecommunications - the technology of sending messages and communicating over long distances, for example by telephone and radio
independent telecom expert - an expert on electronics communications technology who does not work for a telecom company
the role of Y in X - the tasks that y does in project or activity X
exceeding its role - doing more than they are supposed to do
Council of State - the group of legal advisors that provides advice to the Prime Minister's cabinet on the legality of actions they are planning to take
spectrum, frequencies - parts of the limited electromagnetic spectrum that is used for radio, mobile phones, and TV broadcasting
allocate - divide up something and giving it to people
allocate radio spectrum, allocate frequencies - divide up frequencies (and assign to different uses and companies)
a favourable interpretation - when the court decides that the law favours them
challenged later in court - when the
cast votes for the new budget bill - vote for the proposed budget in parliament
dared heed its advice - were brave enough to do what they suggested
The NTC has been attempting for more than two years to start the 3G auction process but backed away several times because of uncertainty about its legal authority.
Because 3G has both communication and broadcasting applications, it is supposed to be overseen by a new regulator, the yet-to-be-formed National Broadcasting and Telecommunications Commission (NBTC).
A TOT board director said the NTC had no authority to go ahead with a licence auction based on two laws: the Organisation for Radio Frequency Allocation Act 2000, and the Telecom Business Act.
The first act, which is still in force, separated telecoms and broadcasting with the NTC taking charge of telecoms, and the National Broadcasting Committee (NBC) in charge of broadcasting. Years of repeated attempts to create the NBC collapsed amid political wrangling over vested interests.
backed away -
decided not to do what it was going to do
uncertainty about its legal authority - does not know whether it has the power to make certain decisions or orders
National Broadcasting and Telecommunications Commission (NBTC) - a proposed combined telecoms and broadcasting regulator
TOT - a Thai state-owned telecommunications company. Originally established in 1954 and corporatized in 2002, TOT's main line of business is fixed line telephony, although it has several other businesses, including mobile telephony. (See Wikipedia)
Organisation for Radio Frequency Allocation Act 2000 - the Thai law regarding the allocation of frequencies or spectrum to different uses and businesses
Telecom Business Act, Telecommunications Business Act of 2001 - the Thai law regulating businesses in the telecommunications sector (Read text of law)
National Broadcasting Commission (NBC) - the regulatory body for telecommunications in Thailand, never selected due to conflict of interest problems
wrangling - arguing about something
vested interests - people who want things to have in a certain way because they will benefit from this
political wrangling over vested interests - many people each fighting to get what they want
uncertainty about its legal authority - does not know whether it has the power to make certain decisions or orders
National Broadcasting and Telecommunications Commission (NBTC) - a proposed combined telecoms and broadcasting regulator
TOT - a Thai state-owned telecommunications company. Originally established in 1954 and corporatized in 2002, TOT's main line of business is fixed line telephony, although it has several other businesses, including mobile telephony. (See Wikipedia)
Organisation for Radio Frequency Allocation Act 2000 - the Thai law regarding the allocation of frequencies or spectrum to different uses and businesses
Telecom Business Act, Telecommunications Business Act of 2001 - the Thai law regulating businesses in the telecommunications sector (Read text of law)
National Broadcasting Commission (NBC) - the regulatory body for telecommunications in Thailand, never selected due to conflict of interest problems
wrangling - arguing about something
vested interests - people who want things to have in a certain way because they will benefit from this
political wrangling over vested interests - many people each fighting to get what they want
The Telecom Business Law was an organic law under the 1997 Constitution but it was later rescinded under the 2007 Constitution, which calls for the formation of a single super-regulator, the NBTC.
Consequently, the TOT executive said, any activity that the Frequency Allocation Act defines as the joint responsibility of the NTC and the non-existent NBC cannot be undertaken by the NTC alone.
He warned that if the NTC called auctions for 3G licences, private mobile operators such as AIS, DTAC and True Move could establish new companies to bid for licences. They would then migrate their customers to the new 3G network so that they would no longer have to pay concession fees, which would severely hurt TOT and its state sibling, CAT Telecom.
organic law - a
fundamental law creating the foundations of a government, determining
the fundamental political principles of a government (See Wikipedia)
1997 Constitution - the so-called "People's Constitution" created with public participation, brought a variety of reforms to Thailand's government (See Wikipedia)
organic law under the 1997 Constitution - one of the fundamental laws found in the 1997 constitution
rescinded - officially declare that a law or agreement will not be followed anymore
single super-regulator - one regulator that regulates two or more industries
migrate their customers to the new 3G network - move their customers to the new 3G network
sibling of Y - brother or sister of Y
state sibling - meaning here: another state-run company
1997 Constitution - the so-called "People's Constitution" created with public participation, brought a variety of reforms to Thailand's government (See Wikipedia)
organic law under the 1997 Constitution - one of the fundamental laws found in the 1997 constitution
rescinded - officially declare that a law or agreement will not be followed anymore
single super-regulator - one regulator that regulates two or more industries
migrate their customers to the new 3G network - move their customers to the new 3G network
sibling of Y - brother or sister of Y
state sibling - meaning here: another state-run company
But Gen Choochart Promprasit, the NTC chairman, maintains that an auction was essential because 3G has been delayed for too long and opportunities to benefit from the technology are being lost.
He said that although the Council of State was merely a legal adviser and not a court, its advice was clear direction for the NTC to act on.
Some observers say the NTC might not be authorised to regulate content, but he said this problem had been addressed by assigning the NTC subcommittee on radio and television broadcasting to regulate content instead under the Radio and Television Broadcasting Act 2008.
CAT, CAT Telecom - the
Thai state-owned telecommunications company that owns Thailand’s
international telecommunications infrastructure including its
international gateways, satellite and submarine cable networks
connections. Until recently, CAT had a monopoly on international
telephony and CDMA mobile telephony. CAT partners with sister
state-enterprise TOT to provide a GSM mobile service and with Hutchison
to provide a CDMA mobile service. Corporatized in July 2003, CAT
Telecom used to be known as the Communications Authority of Thailand
(See Wikipedia)
lost opportunities - things you possibly could have received but didn't
opportunities to benefit from the technology are being lost -
authorised to regulate content - have the power to make laws and regulations controlling an industry
lost opportunities - things you possibly could have received but didn't
opportunities to benefit from the technology are being lost -
authorised to regulate content - have the power to make laws and regulations controlling an industry
(Source: NTC faces 3G challenge, TOT questions legality of 3G licensing, Komsan Tortermvasana, 28/09/2009, link)
