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'No foreign dominance' DTAC and AIS criticise new telecom rule * Published: 6/08/2010 at 12:00 AM * Newspaper section: Business http://www.bangkokpost.com/business/telecom/189710/no-foreign-dominance The National Telecommunications Commission (NTC) yesterday announced a draft regulation that would curb foreign dominance of the local telecom business. The rule will take effect only after it is published in the Royal Gazette but has been posted on the regulator's website, http://www.ntc.or.th, in preparation for a public hearing on Aug 20. It defines "foreign dominance" as direct and indirect control or influence on a company in setting policy and engaging in management beyond that permitted by their share ownership. This includes the use of nominees and foreign ownership that exceeds the levels permissible by law. Particularly contentious is a suggestion that the nationality of senior executives would be taken into consideration in deciding whether companies could bid for 3G mobile broadband licences. The country's two largest mobile operators, Advanced Info Service and DTAC, have major foreign shareholdings: Singaporeans in AIS parent Shin Corp and Norwegians in DTAC. Two of DTAC's top executives in Thailand are Norwegians. Thana Thienachariya, chief corporate affairs and strategy officer for DTAC, said he was very confused about the regulation. He said that under the Asean Economic Community plan that the region intends to adopt by 2015, the Thai government was preparing to liberalise many service areas, including telecoms, by allowing foreigners to hold up to 75% in local companies. The NTC, he said, was doing the opposite of liberalisation. He said that the new regulation might force the planned 3G auction to collapse because no foreign investors would be interested. AIS chief executive Wichian Mektrakarn, however, said the regulation would have no impact on his company because the law could not be retroactive. But it might affect the 3G auction, he acknowledged. Col Natee Sukonrat, an NTC commissioner, said the regulation would bar telecom companies from having foreigners at senior management levels from managers to top executive. Included would be any companies bidding for 3G licences. As a result, he said, AIS and DTAC would need to reshuffle their top managers. Col Natee maintains that effective foreign control of AIS and DTAC exceeded the current 49% cap but this was difficult to prove conclusively. "Therefore the NTC as a regulator has to regulate it clearly," he said. The pre-qualification process for 3G bidding is scheduled for Aug 25-26 and bidders would be asked to submit formal applications on Aug 30. Col Natee said recent NTC roadshows had drawn interest from several foreign operators including China Mobile, China Unicom, SK Telecom of Korea, NTT DoCoMo and KDDI of Japan, Maxis of Malaysia and Atis of the UAE. About the author Writer: Komsan Tortermvasana and Srisamorn Phoosuphanusorn Fee-fi-fo-fum, I smell the blood of a big fat ******* Thai Rat!!!