The telecom regulator insists it will charge telecom operators service fees for cable conduits as part of an ongoing project to ensure that rates are fair and serve the city government's objective of putting all existing overhead telecom and broadcasting cables underground throughout the capital.
The Bangkok Metropolitan Administration (BMA), through its wholly owned subsidiary Krungthep Thanakom (KT), has said it cannot lease cable conduits for telecoms to rent if the rates are unreasonable and conflict with the concept of infrastructure sharing.
KT must submit a proposal to the National Broadcasting and Telecommunications Commission (NBTC) for approval of its business plan when the project is completed and ready to lease the conduits.
According to NBTC secretary-general Takorn Tantasith, the commission fully supports the local government's project to put the overhead cables underground.
He said the project should be done in both main and secondary roads throughout Bangkok. Importantly, the BMA must be the major agency to handle the project because it holds operating rights to related areas of the project, especially footpaths on all roads in Bangkok.
The rates for the cable conduits must also be reasonable and fair for all players, Mr Takorn said. The operations must not be profit-centric, as the government needs cooperation from the telecoms to help beautify the city and serve digital infrastructure development in the long term.
Previously, the National Digital Economy and Society Committee, chaired by Deputy Prime Minister Prajin Juntong, approved the BMA's motion through KT to press ahead with the project and the cabinet acknowledged the committee resolution on Jan 15.
Last week the telecom firms, through the Telecommunications Association of Thailand (TCT), submitted a letter to the prime minister contending that the BMA was letting True Corp monopolise the underground cable project.
The TCT also said that the permit for True to operate the project may be similar to a 30-year concession contract for cable conduits that will stretch 2,450 kilometres throughout Bangkok.
But BMA management dismissed the accusation, saying True was discussing a contract with KT and an official conclusion had yet to be reached.
Also, the telecom operator, to be chosen by KT, will only construct cable conduits, not operate the whole system. Negotiations are under way to determine the lease charges and other returns for the BMA.
A source at the BMA said KT earlier wrote to more than 20 telecom operators inviting them to lease the conduits, but only True expressed an interest.
Mr Takorn acknowledged that KT and True have yet to reach a deal.
"Currently there are different details between the BMA and the TCT, including technology of the conduits that may partly create different rates of service fees," he said.
A source at the TCT said telecom operators don't know the clear details of the business models that are under negotiation between KT and True, along with the 30-year contract, especially the benefit-sharing aspects.
That may create conflict under the infrastructure-sharing concept, which should provide the most affordable rates for the public's benefit.
TCT president Monchai Noosong said the association's working panel is studying all critical factors, including the effects related to parties, clear guidelines and standard procedures based on international practice and updated tech.
"We [TCT] absolutely support the government's policy but are still concerned it would create excessive costs," he said.
The TCT is concerned that telecom companies may have to pay a rental fee to use the underground pipeline at almost 20,000 baht per km per month, compared with only 200 and 300 baht per km per month that the telecom and broadcast companies now pay to rent cement poles from the Metropolitan Electricity Authority and the Provincial Electricity Authority.
Additionally, the TCT sees some roads in Bangkok as suitable for a hybrid model in which all telecom-broadcast cables are grouped into a single overhead tube.
"Even in New York and Tokyo, some parts of these cities have overhead cables, but grouped in a proper way," Mr Monchai said.
