TDRI chief: Giants don't qualify for relief plan

TDRI chief: Giants don't qualify for relief plan

TDRI chief Somkiat Tangkitvanich, a leading voice against corruption, is doubling down on his opposition to providing aid by using Section 44 emergency measures for two giant mobile phone companies. (Post Today file photo)
TDRI chief Somkiat Tangkitvanich, a leading voice against corruption, is doubling down on his opposition to providing aid by using Section 44 emergency measures for two giant mobile phone companies. (Post Today file photo)

Thailand Development Research Institute (TDRI) chairman Somkiat Tangkitvanich has voiced opposition to a plan aimed at granting five-year extensions for the payment of final instalments in the 900-MHz band licence auction.

The extension, worth a total of 120 billion baht, would benefit the two licence winners. He said the national telecom regulator should develop regulations that ensure good governance and support all players instead of entering into negotiations with only a few.

Mr Somkiat said he disagreed with the relief package for the two winners of the 900-MHz licence auction planned by the National Broadcasting and Telecommunications Commission (NBTC), which is urging the government to invoke Section 44 to ease the financial burden of the two companies.

He said Advanced Info Service (AIS) and True Move did not deserve such assistance because they knew the risks involved when they put in the bids for the 900-MHz licences. "Both AIS and True operate mobile services at a profit and are capable of making the licence payments of 60 billion baht each," he added.

Last year, AIS reportedly posted a profit of 30 billion baht, while True Move made 2.3 billion baht. True Move had a revenue share of 18.8% of the local mobile market in 2015, which increased to 26% in 2017 thanks to attractive packages the service provider offered to draw new subscribers.

Mr Somkiat said AIS and True Move are both capable of paying off their fees, adding they might have to borrow from banks or increase their registered capital, but that was the business of the two telecommunication giants.

AIS and True Move jointly asked the government late last year to invoke Section 44 and extend the terms of their licence payments for 2019, when two firms are due to pay the last instalment of 60 billion baht each to the state.

AIS won the 900-Mhz licence with a bid of 75.65 billion baht, while True Move claimed another at 76.29 billion baht. They have already paid 8.04 billion baht each in 2016 and 4.02 billion baht apiece in 2017.

AIS and True Move are due to pay the third instalment of 4.02 billion baht each in 2018. However, the last payment in 2019 would cost AIS 59.5 billion baht while True Move would have to pay 60.2 billion baht.

NBTC has advised the National Council for Peace and Order (NCPO) to support the companies' requests to break down the last payment into another set of five yearly instalments (2020-2024) with a 1.5% interest rate payable to the state for the extension period.

Recently, NBTC secretary-general Takorn Tantasith said the relief for AIS and True Move will encourage the companies to join the planned auction of 1800-MHz licences this year and generate more than 100 billion for the state.

Mr Somkiat said remarks that the two companies would join the bidding process at the next auction after they have received the assistance were only hypothetical.

"Who'll be held responsible if [they] get the extension and don't join the auction? Who'll compensate for the losses caused by this false assumption?" queried Mr Somkiat.

He added that several conditions in the regulations governing mobile operators and service providers had changed and were unstable, thus failing to ensure fairness for all players in the market.

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