Topic: The Need for and Direction of Reliefs and Reforms for Thailand Wireless industry
Speaker: Dr. Suthiphon Thaveechaiyagarn
EX NBTC Commissioner
Recrafting Post-Modern Thai Telecommunication Industry: Reliefs & Reforms
September 25, 2014
Four Seasons Hotel
2. Thailand is a developing country and technology taker
• Technology becomes more complex but law & regulation cannot catch
up with
NBTC is newly established as the independent regulator
• ICT Ministry is national administrator for ITU satellite filings
• State Enterprises, CAT & TOT, are under ICT Ministry
NBTC has full authority to allocate spectrum but law
mandates “auction” only
• Public has misperception on “spectrum auction”
Spectrums available but cannot be allocated to catch the
demand
• Some rural areas still cannot reach basic telecom services
Market
liberalization
First time in
Thai history
3G auction
Concession
contract
Transition
period
2
5. • To ensure industry growth during political reform
• To understand dynamic of convergence from
consumer perspective
• But if regulation is overly strict, (“Hard Law”)
it means barrier to innovation of new services
• In digital era, activities are likely to fall outside
of a national regulatory framework
• Revising the current law to give regulator
more flexibility
5
6. Amendment of the
NBTC Act 2010
Reforming telecom
legislation
6
• 1800 MHz Spectrum
Allocation in August
2014
• 900 MHz Spectrum
Allocation in November
2014
Spectrum Allocation
NCPO postponed the
auctions
•NCPO postponed 1800
MHz and 900 MHz
auction to 2015
•Suggestion of NCPO to
extend consumer
protection period
Extension of 1800
MHz Interim
Measures
• Suggestion of NCPO
to amend the existing
NBTC Organization
Act 2010
• Section 45 mandates
spectrum must be
allocated by means of
auction only
National Council of Peace and Order
(NCPO)
20. Single entity Converged
regulator
Constitution (Sec.305)
separates 2
committees based on
skill and expertise
NBTC
TC
(Telecom)
Converged regulator but
Problems
o Truly “converged” regulator?
o Each committee performs its own duties within the scope of authorities.
o Substantive laws are not converged.
o 700 MHz still under Broadcasting Committee.
BC (Broadcasting)
Reforming legislation on telecom, broadcasting, and ICT as a whole
Good initiation but needs more mutual collaborative framework that
better fits the model of single converged regulator.
some burdens
Facilitate and
Regulate as
NECESSARY
Solutions
20
21. Does existing licensing regime facilitate
converged service enough?
21
Problems
Solutions
Thailand’s licensing system has not yet combined converged services to fall
within one license.
Both sectors are regulated in a different manner under different applicable
law
Operating telecoms business is subject to the Telecoms Business Act 2001
Operating broadcasting business is subject to the Broadcasting Business Act 2008
Modifying licensing regime from a traditional one service to
broader categories.
Need a simplified, technology-neutral, flexible licensing to
encourage market entry and promote competition.
If regulation is overly strict, it means barrier to innovation of
new services.
22. Problems on institution concerned
Separate legislation and regulation: satellite and standardization
with different authorities
Different types of spectrum need different regulations and spectrum
allocation methods
Revising NBTC Act and Telecom legislation to provide more flexibility
on spectrum allocation and satellite regulation
Exclusive right v.s. Licensed Shared Access
22
Problems
Solutions
23. Consumer protection = primary objective
Consumers are abused by
incorrect perception.
Competition served as a “tool”
to achieve the ultimate goal.
But if competition is abused, the
consumers welfare will be
affected.
Consumer
Welfare
23
24. Spectrum auction is only way to allocate spectrum.
Spectrum auction is the best way to get rid of monopoly and corruption.
State will make lots of money from auction.
Competition must be measured at the auction stage.
Spectrum auction has only Open outcry (English) auction.
Incorrect perception
Revising legislation to provide more flexibility on spectrum allocation will benefit operators
instead of consumers
Providing correct perception.
Strengthening more public participation with correct information .
Effective measures to provide education and understanding.
Ensuring that consumers have right to redress fairly and efficiently.
24
Problems
Solutions
25. Lack of spectrum harmonization
Roaming rate is too expensive
Regional cooperation has no clear guideline
International standard has no legal binding
No real regional harmonization
Working towards real regional harmonization
Encouraging single telecommunications market in ASEAN to
have more competition and cheaper roaming rate
Joint co-operations for Standardizations
Seeking international best practices to get better regulations
25
Problems
Solutions
26. 26
•Mobile service rises
dramatically.
•Current frequency is not
enough for stakeholder to
provide a service.
Therefore, it requires a
frequency to support for
providing a seamless
service.
•700 MHZ has been
discussed to apply for
extend mobile service.
Problem
The issue has been
discussed to find a
solution to share
frequency between
telecom and broadcast
service in Frequency
allocation sub-committee
•700MHz has applied for
digital television business. It
expected to use for 15 year.
•Frequency has been used,
unable to be specific defined.
Therefore, it makes difficulty
to share frequency between
broadcast and telecom.
Current situation
Solutions
27. 27
• Revising current law to modernize them and to give regulation more flexibilities;
• Regulating when it is necessary, not whenever we have opportunities;
• Converging regulations of both institution and substantive law;
• Balancing rights of all stakeholders to ensure best benefit of innovations to consumers and
business;
• Strengthening public participation and educating public knowledge to put correct perception
and gain public trust;
• Encouraging single telecommunications market in ASEAN to have more competition and
cheaper roaming rate;
• Cooperating more closely among regulators at both regional and international levels to bring
best practices to support each other.