The National Telecommunications Commission (NTC) yesterday met with representatives from four embassies - Singapore, Norway, the United States and Australia - to clarify some doubts over the regulations, which are now in the process of

public consultation. Representatives from the European Commission delegation to Thailand also joined the meeting.

NTC member Sudharma Yoonaidharma said that during the meeting the representatives asked whether the regulations were in line with international law, fearing that they might infringe on the rights of foreign investors in the Kingdom.

Sudharma said the rules were mainly aimed at encouraging local telecom operators - found to be dominated by foreign shareholders - to disclose information to the NTC and act transparently.

"We focus on disclosure of information, not discrimination against foreigners or to judge who is right or wrong," he added.

In terms of international law, Sudharma said the Thai telecom law had encouraged foreign investment to a greater extent than is required by the country's commitment under the World Trade Organisation.

The amended telecom law lifted the maximum ceiling of foreign shareholding in local telecom operators to 49 per cent from 25 per cent, compared to that of 20 per cent under the WTO agreement.

The amended law also removed the previous requirement that not less than three-fourths of the total number of a licensee's directors must be of Thai nationality.

Among the characteristics deemed to be foreign dominance are that a foreign shareholding exceeds 49 per cent, and that foreign shareholders and nominees have voting rights

in excess of their actual stake-holding.

Another is that foreign shareholders or nominees have the power to appoint persons to key posts in local companies.

TOT Plc and CAT Telecom need to make sure that their concessionaires comply with the regulations.

Some telecom analysts consider the draft rules to be too prohibitive.

Sudharma said that once the regulations come into force, all telecom operators would have to inform the NTC of any characteristics of foreign dominance in their companies. The regulator is planning to set up a panel to investigate whether the information is correct.

He declined to specify when the regulations would come into effect.

He did say, however, that the representatives of foreign embassies were satisfied with the NTC's explanation.

The NTC will post the third amendment of the regulations on www.ntc.or.th next week.

Sirivisgh Toomgum

The Nation