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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. Subscribers / Clients.

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Thai Telecom market liberalization

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  1. 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

  2. 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

  3. 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

  4. 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

  5. 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

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

  7. 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

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

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

  10. 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

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

  12. CU Framework 2006 2015 xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx No payment after market liberalization

  13. CU Framework • Problems • Unfair for new players • Government losing benefits

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

  15. ICT Framework • Problems • Shoving tax responsibility to consumer

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

  17. THE END

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