Representatives of CAT Telecom Plc and TOT Plc yesterday asked the NTC to state clearly in its draft regulations aimed at preventing a monopoly whether their ownership of private concessions will make them market monopolies.

According to the draft, monopolistic practices and cases of unfair competition include subsidy and cross-subsidy, a 10-per-cent shareholding in a company in the same business, the abuse of market power, and the restriction of competition.

A telecom licensee will be deemed a monopoly if it holds more than 10 per cent in a company in the same business, whether directly or indirectly, and can control its policies.

A licensee with a 25-per-cent share of the market that exploits its market power to impede competition will also be deemed monopolistic.

The NTC held a public hearing yesterday on the draft regulations restricting monopolies and unfair competition, as well as draft regulations governing telecom business contracts to be signed with overseas companies. The regulations will apply to both NTC licensees and private telecom concessionaires.

Total Access Communication's (DTAC) assistant director of regulatory affairs, Sarayut Bunlertkul, spoke in support of the NTC's intention to ban cross-subsidies. He said this included the state agencies' spending of concession fees they earned from private concessionaires on their own business operations.

A representative of fixed-telephone operator TT&T Plc said the limitation of a 10-per-cent stake in a company in the same business was too restrictive and should be lifted to 25 per cent.

However, NTC commissioner Sudharma Yoonaidharma said that if a licensee holds a 10-per-cent shareholding in a company in the same business, or commands a 25-per-cent market share, but its practices do not restrict market competition, then it would not be subject to the regulations.

Usanee Mongkolporn

 The Nation