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Thai Telecom market liberalization

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Thai Telecom market liberalization - PowerPoint PPT Presentation


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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. Subscribers / Clients.

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thai telecom market liberalization
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
Sharing revenue in Concession

Subscribers

/ Clients

Ministry

of Finance

Services

Payments

Partial

Income

  • Concessioner
  • Operators
  • Shin
  • Samart
  • UCOM
  • State-own
  • Enterprise
  • TOT
  • CAT

Sharing

Revenue

as concession fee

  • Jasmine
  • CP
slide5
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
slide6
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
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
Telecom Reform Developments Before Liberalization
  • Privatization of TOT and CAT
  • Formation of the NTC
  • Telecommunications concession

conversion

privatization of tot and cat
Privatization of TOT and CAT
  • 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
formation of the ntc
Formation of the NTC
  • The NTC is independent regulatory organization
  • Governed by seven-member board
  • Lack of transparency about candidates selecting
telecom concession conversion
Telecom Concession Conversion
  • What is the best way to converse telecommunications concession before liberalization?
    • TDRI framework
    • CU framework
    • ICT framework
tdri framework
TDRI Framework

2006

2015

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

X

X

X

X

X

X

X

X

X

Lump sum

payment

on NPV

Discounted by

appropriate rate

tdri framework1
TDRI Framework
  • Problems
    • What is appropriate discount rate ?
    • Many private firms reject it, cause it less competitive than new entrants
cu framework
CU Framework

2006

2015

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

No payment after market

liberalization

cu framework1
CU Framework
  • Problems
    • Unfair for new players
    • Government losing benefits
ict framework
ICT Framework

TOT & CAT

Concession fee

Concessioner

Excise tax

Ministry of Finance

ict framework1
ICT Framework
  • Problems
    • Shoving tax responsibility to consumer
conversion principle
Conversion Principle
  • Fair game for any players
  • Reduction in government revenue as low as possible
  • Benefit to consumer
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