NBTC dangles lower licence fee

NBTC dangles lower licence fee

1% for firms that use locally built 3G gear

The National Broadcasting and Telecommunications Commission (NBTC) is floating an idea to halve its 3G licence fee to 1% for mobile operators that use locally made equipment to build 3G and 4G infrastructure.

Potential local telecommunications equipment includes optical fibre, routers and switches, said Jesada Sivaraks, secretary to the NBTC's vice-chairman.

He said the incentive proposal was suggested by the Telecommunications Association of Thailand under the Royal Patronage, and the NBTC is preparing to raise the issue with the telecommunications committee.

Under its proposal, the NBTC wants to adjust some conditions of existing regulations to promote the local telecommunications industry.

"Any 3G licensees that use local telecom equipment could enjoy a licence fee of 1%, paying 1% of total annual revenue, instead of the 2% rate earlier stipulated," said Mr Jesada.

"If the telecommunications committee approves, then the proposal will take effect by the first quarter of 2013."

Mobile operators plan to introduce their 3G wireless broadband services on the 2.1-gigahertz spectrum in major cities by mid-2013.

Under the 3G information memorandum condition, operators must serve 80% of the population within four years.

Mr Jesada said the NBTC is gearing up to issue infrastructure sharing licences to network service providers.

To be in compliance with the new draft regulation, telecommunications infrastructure must be shared throughout all platforms including mobile towers.

The new rule will have both voluntary and compulsory features for the infrastructure owners, essentially TOT Plc and CAT Telecom.

Authorities will give the owners of key infrastructure such as mobile towers and fibre-optic networks preferential pricing on their licence fees if they decide to comply voluntarily.

Either way, the regulation will require infrastructure owners to allow access and use by other parties.

Col Settapong Malisuwan, chairman of the NBTC's telecommunications committee, said the compulsory option has passed public consultation, while the voluntary one needs to be submitted to the telecommunications committee before going to a public consultation forum.

The infrastructure licence rule will encourage both TOT and CAT Telecom to share their networks with existing and new telecom operators, he said.

It is also part of a policy aimed at encouraging the two state enterprises to focus on serving as network service providers rather than service operators.

One condition of the licence to act as a telecom facilitator is that licence holders must waive their right to bid for new frequency allocations and may rent infrastructure only to operators that provide service without having their own networks.

One incentive for telecom facilitators is that the annual fees charged by the NBTC will be lower than the usual rate. Licensees now pay an annual fee equal to 5.75% of revenue _ 3.75% as a universal service obligation charge and 2% for the licence fee itself.

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