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142536
Fri, 09/17/2010 - 21:04
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http://m.oananews.org//node/142536
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Thai PM: Halted 3G licence bidding affects investor confidence
BANGKOK, Sept 17 - Thai Prime Minister Abhisit Vejjajiva said on Friday the halt of the country's third generation (3G) wireless service bidding affected investor confidence, but pledged his government will speed up drafting a new bill in an attempt to set up the National Broadcasting and Telecommunications Commission to oversee the matter.
Thai telecoms stocks dropped on Friday after the court ruling. Advanced Info Service (AIS) fell 8.7 percent to close at 89.50 baht, Total Access Co. slid 14.3 percent to 39.00 baht while True Corp. plunged 25 per cent to 5.10 baht.
The premier made the comments following the Central Administrative Court's injunction to halt the upcoming 3G licence bidding until the National Broadcasting and Telecommunications Commission (NBTC) is established as prescribed under the 2007 Constitution, saying the National Telecommunications Commission has no authority to allocate the frequencies.
Mr Abhisit said the suspension was a legal problem, a technicality, not policy. At this stage no one can tell whether or not the 3G licence auction could proceed as there is still no law concerning NBTC. The issue now rests with the Constitution Court's legal interpretation.
If the court rules against an auction for licences, the government would accelerate drafting a new bill concerning the establishment of NBTC to push forward the matter, according to the premier.
Thailand's National Telecommunications Commission (NTC) on Friday appealed the ruling of the Central Administrative Court which halted the planned auction for third generation mobile licence, saying it has authority to allocate the frequencies to operators.
Col Natee Sukonrat, NTC commissioner who serves as chairman of the 3G auction committee, appealed the Supreme Administrative Court for an urgent inquiry on the case and sought court permission to allow the commission to conduct the 3G licence bidding scheduled to be held at the Evason Hotel in Prachuap Khiri Khan on Monday.
Col Natee said the NTC wants to clarify the authority of the commission in allocating the 2.1 gigahertz frequency spectrum and the detrimental effects on country's economic and social development if 3G bidding is still not allowed.
He said the bidders, the three existing private 2G mobile operators -Advanced Info Service (AIS), DTAC and True Move, are now waiting for the auction until the court rules otherwise. The NTC, however, will officially cancel the bidding on Monday if the court stands by the lower court’s decision.
Col Natee insisted that the NTC has authority to allocate frequencies as it had granted some to a state-owned company CAT Telecom and the Aeronautical Radio of Thailand. If the court ruled that the NTC could not allocate the frequencies, the court ruling should have impacted previous frequency allocation.
"The NTC is confident in court procedures. We only hope that the court will be kind to us as we have prepared the 3G bidding for more than four years and every process is conducted transparently." said Col Natee.
Col Natee added that the NTC has authority to allocate frequencies as it had previously granted permission to the CAT Telecom and TOT Pcl, formerly known as Telephone Organization of Thailand to launch 3G service on the same frequencies. The upcoming NTC's licence for operating 3G is not the first time, but a significant bidding.
“3G is much more than mobile phone service. The NTC gives importance on broadband internet service which will speed up the country's development and the NTC has prepared the 3G bidding process for over four years as the existing network is not sufficient,” according to the NTC commissioner.
Col Natee reasoned that the current percentage of the country's internet accessibility is only two per cent, but once 3G service is allowed, the new network will cover 80 per cent of areas of the country within four years, resulting in an increase of internet accessibility to 80 per cent.
The technology accessibility is an important index which indicates the country's telecommunications industry development and overall economic circumstances. The halt of 3G auction in every second means the country is losing its opportunity, said Col Natee.
Following the lawsuit of TOT Pcl filed to the court Friday morning, Col Natee commented that the TOT's reaction is not wrong as the TOT and CAT Telecom have to do their duties in protecting their own interests, while the NTC also has to protect national and public interest by providing efficient 3G service with reasonable cost.
Col Natee said Bt80 million of budget has been spent for the upcoming 3G bidding process, the number of which is considered partial damage compared to the losing opportunity of the country and the Thai people.
The NTC move came as the Central Administrative Court on Thursday issue an injunction to suspend the 3G auction as the national telecom commission had no authority to organise the bidding, saying it had to wait until the NBTC is established as prescribed under the 2007 Constitution.
The court reasoned the NBTC Bill had already passed readings in both the House of Representatives and the Upper House of Parliament. The bill had also been revised by the Joint Parliamentary Committee and is being brought for consideration by the House again.
The bidding, if allowed to proceed, will cause an obstacle to the performance of NBTC, which is set to be established in the near future.
The ruling puts planned 3G bidding on September 20 to an immediate halt. (MCOT online news)
Thai telecoms stocks dropped on Friday after the court ruling. Advanced Info Service (AIS) fell 8.7 percent to close at 89.50 baht, Total Access Co. slid 14.3 percent to 39.00 baht while True Corp. plunged 25 per cent to 5.10 baht.
The premier made the comments following the Central Administrative Court's injunction to halt the upcoming 3G licence bidding until the National Broadcasting and Telecommunications Commission (NBTC) is established as prescribed under the 2007 Constitution, saying the National Telecommunications Commission has no authority to allocate the frequencies.
Mr Abhisit said the suspension was a legal problem, a technicality, not policy. At this stage no one can tell whether or not the 3G licence auction could proceed as there is still no law concerning NBTC. The issue now rests with the Constitution Court's legal interpretation.
If the court rules against an auction for licences, the government would accelerate drafting a new bill concerning the establishment of NBTC to push forward the matter, according to the premier.
Thailand's National Telecommunications Commission (NTC) on Friday appealed the ruling of the Central Administrative Court which halted the planned auction for third generation mobile licence, saying it has authority to allocate the frequencies to operators.
Col Natee Sukonrat, NTC commissioner who serves as chairman of the 3G auction committee, appealed the Supreme Administrative Court for an urgent inquiry on the case and sought court permission to allow the commission to conduct the 3G licence bidding scheduled to be held at the Evason Hotel in Prachuap Khiri Khan on Monday.
Col Natee said the NTC wants to clarify the authority of the commission in allocating the 2.1 gigahertz frequency spectrum and the detrimental effects on country's economic and social development if 3G bidding is still not allowed.
He said the bidders, the three existing private 2G mobile operators -Advanced Info Service (AIS), DTAC and True Move, are now waiting for the auction until the court rules otherwise. The NTC, however, will officially cancel the bidding on Monday if the court stands by the lower court’s decision.
Col Natee insisted that the NTC has authority to allocate frequencies as it had granted some to a state-owned company CAT Telecom and the Aeronautical Radio of Thailand. If the court ruled that the NTC could not allocate the frequencies, the court ruling should have impacted previous frequency allocation.
"The NTC is confident in court procedures. We only hope that the court will be kind to us as we have prepared the 3G bidding for more than four years and every process is conducted transparently." said Col Natee.
Col Natee added that the NTC has authority to allocate frequencies as it had previously granted permission to the CAT Telecom and TOT Pcl, formerly known as Telephone Organization of Thailand to launch 3G service on the same frequencies. The upcoming NTC's licence for operating 3G is not the first time, but a significant bidding.
“3G is much more than mobile phone service. The NTC gives importance on broadband internet service which will speed up the country's development and the NTC has prepared the 3G bidding process for over four years as the existing network is not sufficient,” according to the NTC commissioner.
Col Natee reasoned that the current percentage of the country's internet accessibility is only two per cent, but once 3G service is allowed, the new network will cover 80 per cent of areas of the country within four years, resulting in an increase of internet accessibility to 80 per cent.
The technology accessibility is an important index which indicates the country's telecommunications industry development and overall economic circumstances. The halt of 3G auction in every second means the country is losing its opportunity, said Col Natee.
Following the lawsuit of TOT Pcl filed to the court Friday morning, Col Natee commented that the TOT's reaction is not wrong as the TOT and CAT Telecom have to do their duties in protecting their own interests, while the NTC also has to protect national and public interest by providing efficient 3G service with reasonable cost.
Col Natee said Bt80 million of budget has been spent for the upcoming 3G bidding process, the number of which is considered partial damage compared to the losing opportunity of the country and the Thai people.
The NTC move came as the Central Administrative Court on Thursday issue an injunction to suspend the 3G auction as the national telecom commission had no authority to organise the bidding, saying it had to wait until the NBTC is established as prescribed under the 2007 Constitution.
The court reasoned the NBTC Bill had already passed readings in both the House of Representatives and the Upper House of Parliament. The bill had also been revised by the Joint Parliamentary Committee and is being brought for consideration by the House again.
The bidding, if allowed to proceed, will cause an obstacle to the performance of NBTC, which is set to be established in the near future.
The ruling puts planned 3G bidding on September 20 to an immediate halt. (MCOT online news)
