NBTC looks to allay fears over conduit monopoly

NBTC looks to allay fears over conduit monopoly

Workers dig up a road in June as City Hall plans to move all overhead telecom cables in Bangkok underground within two years. (File photo by Wichan Charoenkiatpakul)
Workers dig up a road in June as City Hall plans to move all overhead telecom cables in Bangkok underground within two years. (File photo by Wichan Charoenkiatpakul)

The telecom regulator is assuaging concerns about a monopoly firm controlling the 20-billion-baht underground cable conduits project, saying city hall's business arm Krungthep Thanakom Co (KT) would be responsible for investing in and operating the scheme.

Telecoms voiced their concern after reports that KT had granted True Corporation the right to operate the project, something critics say would give the company an advantage over other telecom operators. True has dismissed the allegation.

According to the National Broadcasting and Telecommunications Commission (NBTC), Section 35 of the Telecom Business Act, which governs the practice of using, investing and building conduits or telecom infrastructure, stipulates that NBTC's licensees have to strictly invest in and operate such infrastructure by themselves.

Last year, KT was granted a 15-year licence as a telecom network operator by the NBTC. This means KT must directly invest in and operate the conduit project on its own, said Takorn Tantasith, secretary-general of the NBTC.

"It cannot proceed with the project through a nominee," he said.

His affirmation came after the NBTC held a meeting with six telecom companies and KT management about the project on Wednesday.

Mr Takorn said KT must submit a reference price for the construction cost to the regulator in August. The regulator would also consider rental fee rates that KT plans to charge telecom operators for the conduits.

He said KT must submit details of its request for proposals (RFP) to the NBTC. The RFP was earlier sent by KT to all telecom companies to sound out how much conduit capacity they would want to rent.

"Lastly, KT must ensure that all telecom companies have the right to rent its conduits' capacity in the future at fair and equal rental fee rates," Mr Takorn said.

He said telecom firms don't have to rent the cable conduits built by KT.

There have been rumours of a monopoly on the project for months, with several telecom firms submitting a petition via the Telecommunications Association of Thailand (TCT) to the prime minister indicating that the BMA was allowing True to monopolise the scheme.

The TCT likened the deal to a 30-year concession for the cable conduits that would stretch 2,450 kilometres throughout Bangkok.

The TCT also expressed concern that the telecom operators might have to pay almost 20,000 baht per km per month in rental fees, as opposed to the 200-300 baht they pay to rent space on utility poles owned by the Metropolitan Electricity Authority and the Provincial Electricity Authority.

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