Telecommunications Regulatory Environment. in Thailand. Asc. Prof. Sudharma Yoonaidharma JANUARY 2007
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1 Telecommunications Regulatory Environment in Thailand Asc. Prof. Sudharma Yoonaidharma JANUARY 2007
2 NTC in Between consumers wants IR to be a Watchdog Operators & Government wants IR to Fairy Godmother
3 Outline Industry Overview Key Policies The Regulatory Framework The road Ahead
4 Global Trend Traditional Practice Current Developments Tomorrow Results Market Fixed Network Mobile Network IP Network Fixed Network Mobile Network IP Network Access Network Core Telecom Service Information Service Broadcast Service Telecom Service Information Service Broadcast Service Services & Contents Method Retail Market Regulation Ex-Ante Wholesale Market Regulation Ex-Post Source : Detecon
5 Competition & Diversification Upstream Vertically - integrated operator WHOLESALE ACCESS ACCESS WHOLESALE ONLY (e.g. wholesale monopolist) COMPETITOR 1 COMPETITOR 2 COMPETITOR 3 COMPETITOR 4 COMPETITOR X RETAIL RETAIL COMPETITION RETAIL COMPETITION RETAIL COMPETITION RETAIL COMPETITION RETAIL COMPETITION Downstream Consumers
6 Industry Overview Liberalization guaranteed by Laws New comers are allowed: Market expands in mobile sector, Broadband and Internet Left over Deficiency: legacy still lingers Politicization of Transformation
7 Industry Overview The driver: Demand for new technology: 3G, WIMAX, MAN Data transport service Unlicensed band or freeing up spectrum Improved Market Access Depoliticization & Rationalization of the Investment Decision
8 Industry Overview Co-existence: Shall we allow! Public vs Private Monopoly vs competitor Administrative Contract vs Civil & Commercial Contract vertical Integration vs Demand for Market Access
9 Licenses: Total ISP I ISP II 5 5 ISP III 1 1 Type I Type II Type III 2 4 1(+5) 7 (+5) (+5) 85 (+5) February, 2007
10 Key Policies Legislative Policy & Regulatory Policy & International commitment
11 Regulatory Policy From Light handed to legalistic/ judiciary Due regulatory process International best practice rebalancing and restructuring Empowerment Policy
12 Legislation NTC Act of 2000 & telecommunications Industry Act of 2001
13 Key Provisions
14 Key Provisions License regulation Interconnection Fair trade/ competition Numbering Consumer protection Right of way USO Enforcement Judicial Scrutiny As supplemented by regulations
15 Regulation at a glance Inward perspectives Outward perspectives
16 Regulation at a glance Inward regulation: Main focus is to create regulatory environment where transparency and accountability of NTC and NTC Secretariat is the main driving force.
17 Regulation at a Glance Disclosure and Transparency Agency Regulation Telecommunications Master plan Decision Making & N TC Meeting Procedure Public Hearing/participation Regulation NTC Meeting Regulation R.I.A. Regulation Code of Ethics
18 Regulation at a glance Outward regulation: main objectives are to enable interested parties (telcos, consumers etc.) to go after their own interest rebalance / regain competition fair trade rule Open Network progressive liberalization
19 Regulation at a glance Frequency Allocation Regulation Revocation and Suspension of License Procedure Trial License for Radio Spectrum Regulation Universal Service Regulation Type of Telecommunications Subject to License Regulation
20 Regulation at a glance a) Internet License, b) Internet License Fee, c) Internet Interconnection Regulation License Regulation a) Type I, b) Type II and c) Type III a) Numbering Regulation, b) Numbering Plan, c) Special Number Regulation (new prefix wi# be effective 09/06),, D) Mobile Phone Number (08) License Fee Regulation
21 Regulation at a glance VOIP Regulation IIG & NIX Regulation Interconnection and Access Regulation (future 10+ Sub-regulation on interconnection and access) Fast Tract License Regulation (one year experiment)
22 Regulation at a glance Standard Contract Regulation Fair Trade Practice Regulation Tariff Regulation
23 Regulation at a glance Automatic IIG License (Type I) Automatic IIG License (Type II) IIG License (Type III) Foreign Element Contract Regulation
24 Regulation at a glance Liberalization of International Gateway Resale Regulation Merger and Acquisition Regulation VOIP Liberalization
25 Regulation at a glance In the pipe line: Waiting to be effective Competition Code Standard Information for Licensee Spectrum Transfer/ Trading Satellite Services Foreign Participation Regulation
26 Where do we go from here? A move toward cost Fair competition Consumer Welfare Regulated environment Pre vs Post Market Entry action by NTC Open Network
27 Two key issues at the moment
28 License: Types Licensing Practice: automatic license & Market Access
29 Interconnection Segmentation without Interconnection 3 from Light handed to judiciary approach Cost Based regime Essential Facility or Bottleneck Theory EFD introduced! Although telecommunications was not a natural monopoly, single, unregulated ownership of certain facilities would allow the owning firm to exclude rivals and give the firm an economic advantage. For economic welfare, a bottleneck should be made
30 Galactic Violence!!
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