The National Broadcasting and Telecommunications Commission (NBTC) shrugged off what it calls a "deliberate intervention" by the EU on its new draft regulation on foreign dominance for telecom businesses.
The regulator insisted the draft was not designed to deter foreign investment in the Thai telecoms industry. Rather, it aims at helping local operators avoid breaching the laws governing telecom and foreign businesses.
NBTC commissioner Suthipol Taweechaikarn said miscommunication among locals about the impact of the rule has been to blame.
"After two hours of discussion, the EU delegate better understands the rules and said they are not harmful," he said.
But Antonio Berenguer, head of the trade and economic section of the delegation, met with NBTC commissioners yesterday to ask the regulator to clarify and review the regulations.
The EU recently submitted a letter in opposition to the NBTC's new foreign dominance regulations.
It claimed the rules were not in compliance with World Trade Organization agreements and national treaty commitments.
The union also raised concerns the rules, expected to become effective in August, would undermine investment climate in the country.
Mr Suthipol said all Thai telecom operators under the concession regime and the NBTC's licensing system should devise measures to prevent acts deemed as foreign dominance.
Foreign shareholding is capped at a 49% stake, he added.
At last week's public hearing on the draft, second-ranked mobile operator Total Access Communication (DTAC) raised concerns, fearing the draft could be used to challenge the qualifications of prospective bidders for the upcoming third-generation licensing auction for the 2.1-gigahertz spectrum.
Darmp Sukontasap, DTAC's corporate affairs chief, said the existing Foreign Business Act is enough to govern foreign dominance concerns.
The Norway-based operator believes someone could file a dominance claim against 3G bidders, which could possibly collapse the 3G auction.