Future of the Thai Telecommunications

in the Age of Convergence:

NBTC’s perspective

Dr. Suthiphon Thaveechaiyagarn National Broadcasting and Telecommunications Commissioner

The 17th Asia Telecom Information Exchange (ATIE), New Delhi, 6th May 2013

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The NTC prepared the auction

CAT filed a lawsuit against the NTC

The Administrative Court affirmed by the Supreme Administrative Court issued a provisional injunction

Failure in conducting the previous auction

1.Background at a glance

Mission was impossible !

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X State Monopoly X Concession Contract X 2.1 GHz spectrum left unused Liberalization

New regulatory task of NBTC = Spectrum Auction

3G auction license

Network roll out

obligation

3 regulations

Infra. Sharing MVNO

National Roaming

Better consumer protection

2. Successful regulatory tasks

Before NBTC establishment After NBTC establishment

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1.The removal of N-1 Condition

2. Spectrum Packaging new block size

3. Collusion prevention

4. Spectrum Cap

5. Reserve price

The spilt 5 MHz attracts new entrants

3. Sequence of auction process

Prevent spectrum hoarding Both legal and social measures

Encourage competition as a whole

Risk of leftover licenses

Inefficient use of spectrum

Effort to facilitate auction: Revision

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Before auction After auction

1. File petition to Administrative

Court to revoke provisional

injunction on former auction

2. Revise regulations to

facilitate the implementation of

auction

3. Deal with attempt to revoke/

suspend the auction by affected

party

1. Question and call for clarification

done by the Senate, Representative,

National Anti-Corruption Commission

2. 7 Lawsuits at the Administrative

Court

3. Storm of public criticism and

misunderstanding by misleading info

Regulatory obstacles

Auction

conducted Oct

2012

3. Sequence of auction process

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Regulator Market needs to be liberalized

Public criticism

Affected parties wants to revoke

auction. Consumers expects variety of services

with low price.

Character of telecoms market is always

evolving and has rapid growth.

No absolute regulations like one-size-fits-all model.

3. Sequence of auction process

What’ve we been through?

12-year lack behind other

countries

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Public under first-time-in-Thai-history spectrum auction

Complexity; full of technical issues

Different principles and rules from other auctions

Problems

Solution

Legal Dimension

Social Dimension

3. Sequence of auction process

Regulatory obstacles

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Auction result confirmed by the ITU

Strengthening stakeholders consultation process

Solution

Legal Dimension

Social Dimension

Clarification at Administrative Court and government agencies

Adopted regulations to better ensure competition

• Infrastructure Sharing

• MVNO

• National roaming

How to overcome?

Regulatory obstacles

3. Sequence of auction process

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3. Sequence of auction process

Assessment by the ITU

1. Spectrum licenses were efficiently and fairly assigned.

2. Licenses contain important measures to improve competition

3. Benefit to consumers is ensured by price reduction of 15% in comparison to 2G services

4. Principles, objectives, design and outcome are consistent with international best practice.

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new context of technological convergence

Technological Convergence between Telecommunications Media and ICT’s

Digitalization

Telecommunications Infrastructure Voice Services

Media Infrastructures

Media and Radio Services

ICT’s Infrastructure

Informatics Applications

4. Next challenge of regulatory tasks

Regulation should be imposed

only where necessary and must

not block market development

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• Expiration of concession contracts in several bands (900, 1800 MHz) will be available for auction

• interim consumer protection measure in transitory period

Telecoms

• Digital TV auction (digital switchover) Broadcasting

• Harmonization of digital dividend spectrum Convergence

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4. Next challenge of regulatory tasks

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End of monopoly and shift to liberalization

- More competition among sectors - Better infrastructure

-Benefit for Thai consumers -Benefit for Thai industry

5. Conclusion

Increasing cooperation at both regional and

international levels

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