Thai Telecom market liberalization WTO agreement on telecom services liberalization Semi-liberalization by giving concession to private operators in the 1990s Thai Government fully privatize and liberalize telecom services in 2006

Sharing revenue in Concession State-own Enterprise TOT CAT Concessioner Operators Shin Samart UCOM Ministry of Finance Partial Income Sharing Revenue as concession fee Jasmine CP Subscribers / Clients Services Payments

TOT Own sources of revenue Fix Lines Public phone BTO Concession Fix lines (Bangkok) - TA Fix lines (Rural) - TT&T Mobile phone - AIS Paging - Hutchison, Worldpage, Phonelink

CAT Own sources of revenue International phone Postal services ISP (Internet Service Provider) Mobile phone BTO Concession Mobile phone – DTAC, TAOrange, DPC Satellite - Thaicom Paging – Paclink, Easycall

After Telecom Liberalization Concessions of TOT & CAT be eliminated TOT and CAT only be one player, not a controller anymore New organization be established for control a game

Telecom Reform Developments Before Liberalization Privatization of TOT and CAT Formation of the NTC Telecommunications concession conversion

Slack privatization cause the NTC has not been established TOT accomplished to be TOT Corporation in 2002 Plan to list TOT & CAT in the Stock Market Privatization of TOT and CAT

The NTC is independent regulatory organization Governed by seven-member board Lack of transparency about candidates selecting Formation of the NTC

Telecom Concession Conversion What is the best way to converse telecommunications concession before liberalization?  TDRI framework  CU framework  ICT framework

TDRI Framework Lump sum payment on NPV Discounted by appropriate rate xxxx XXXXXXXXXXXXXXXXXX

TDRI Framework Problems  What is appropriate discount rate ?  Many private firms reject it, cause it less competitive than new entrants

CU Framework No payment after market liberalization xxxx

CU Framework Problems  Unfair for new players  Government losing benefits

ICT Framework Concessioner Ministry of Finance TOT & CAT Concession fee Excise tax

ICT Framework Problems  Shoving tax responsibility to consumer

Conversion Principle Fair game for any players Reduction in government revenue as low as possible Benefit to consumer

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