The National Telecommunications Commission (NTC) has added the exemption to the third draft of the regulations.

The provision gives nationals from signatory countries, such as the US and Thailand, the same rights and benefits as locals in the operation of businesses and is reciprocal.

NTC commissioner Sudharma Yoonaidharma said on Friday that he would submit the new draft for NTC board approval soon and that a copy would also be posted on the website Ntc.or.th within a week.

Practices deemed to aid foreign dominance include the use of nominees by foreign shareholders and the voting rights of foreign shareholders and nominees exceeding their actual stake.

Other practices are foreign shareholders or nominees having the ability to appoint key management persons, the right to approve or veto the operators' policies, and the foreign shareholders or nominees having rights to appoint associated foreign nationals to key positions in the local business.

Sudharma said foreigners who came under the treatment clause had to inform the NTC of their status, after which the commission would verify the information with the Foreign Ministry or other agencies.

The NTC will set up a committee comprising representatives from the Business Development Department, the Department of Trade Negotiations, the Department of Treaties and Legal Affairs, the National Security Council, and the Board of Investment to advise on the implementation of the regulations.

Sigve Brekke, chief executive of Total Access Communication (DTAC), said his company was ready to comply with the new regulations.

Some industrialists, however, view the rules as too restrictive.

TOT and CAT Telecom Plc, who are NTC licensees and own the private concessions, will have to make sure their concessionaires comply with the regulations.

Current telecom law limits foreign shareholding in a local operator to 49 per cent.

Late last month Bangkok-based representatives from Singapore, Norway, the US and Australia asked the NTC for clarification on the second amendment to the draft regulations out of concern for the possible impact on the rights and interests of foreign shareholders of Thai telecom firms. The NTC explained that the regulations were mainly intended to encourage telecom operators to disclose information to the NTC and act transparently.

It said the rules were not aimed at deterring foreign investment.

The Norwegian government is the major shareholder of Telenor, which controls DTAC and its parent United Communication Industry.

Singapore's state investment arm Temasek Holdings controls Shin Corp Plc via its two subsidiaries.