Sunday, September 05, 2010

Thailand - Regulator is concerned at politically motivated efforts to derail 3G licensing exercise this month

[bangkok post] The National Telecommunications Commission (NTC) is keeping a wary eye on what one member claims are politically motivated efforts to derail this month's highly anticipated auction of 3G mobile broadband licences.

But the chairman of the auction committee insists the event will go ahead as scheduled on Sept 20 in Hua Hin, under unprecedented security provided by military and police personnel.

Col Natee Sukolrat, who is also one of the seven NTC commissioners, said certain political interest groups had been trying to undermine the auction, working through nominees and using underground tactics.

He said the first signs of resistance emerged when the regulator was drafting the auction rules, with some parties attempting to include rules that would most benefit themselves or business groups with which they were linked.

However, he said the NTC had been careful to ensure that the final draft was fair and would not benefit any one group over any other.

Because the auction rules have now been published in the Royal Gazette, there is no turning back.

"This means the bidding process has to happen on the schedule. If the NTC ignores the schedule, it will be found guilty of violating Article 157 of the Constitution," said Col Natee.

Three complaints about the auction process have been filed with the Administrative Court but all were dismissed, he said, adding that he expected more legal challenges to come.

He also pointed to an attempt by Prasit Pothasuthon, chairman of the Senate committee on science, technology, communications and telecommunications, to bring a case to the National Counter Corruption Commission.

Mr Prasit claimed that the 3G auction prices proposed by the NTC were too low.

As well, the House committee on science, technology and communications last week suggested that the mobile operator DTAC be disqualified from the auction because it is more than 50% foreign controlled _ a claim that DTAC, the Commerce Ministry and the NTC have all rejected.

The House committee is chaired by Chen Thaugsuban, a brother of Deputy Prime Minister Suthep Thaugsuban.

Col Natee said the committee's disclosure at a press conference was distorted and directly affected DTAC shares in the market. "Who is to be held responsible for such fabricated news?"

DTAC and its two mobile rivals _ Advanced Info Service and True Move _ are the only bidders in the auction and all are doing so through subsidiaries.

All three bidders are now undergoing pre-qualification screening. Col Natee said the screening dealt only with whether the bidders met the NTC's basic qualifications and did not deal with technical qualifications or compliance with other laws.

He expressed concern that as the auction drew near, more disruptive attempts would be made through the courts and legislative process, claiming that some people were pushing the state telecom enterprises TOT and CAT Telecom to file legal complaints.

The 3G auction has been delayed for more than four years because of political instability as well as questions about the NTC's legal authority to conduct the event.

Some parties now want to speed up final scrutiny of the new Frequency Allocation Law, which would replace the NTC with a new super-regulator, the National Broadcasting and Telecommunications Commission.

Col Natee said the draft law was currently ranked 30th on a list of legislation ready to be scrutinised in the House of Representatives after it was endorsed with changes in the Senate in May. Attempts to move the law up the list could be a sign of trouble, he added.

"The battlefield has now moved from the NTC office on Phahon Yothin Soi 8 to the Finance Ministry and the Parliament."

NTC wary of auction fate - But regulator insists 3G bid will go ahead

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