While the national telecom regulator's plan to liberalise the international Internet-gateway (IIG) market may lead to cheaper Internet access, small Internet service providers (ISPs) have expressed concern it would provide cash-rich providers a chance to monopolise the business.

The smaller ISPs expressed their concerns during a recent meeting with the National Telecommunications Commission (NTC), which plans to award type-3 licences for operating an IIG service soon.

A type-3 licence is for applicants that have large and dedicated network infrastructures, and competition among the applicants could significantly affect the public.

The owners of a type-3 IIG licence may connect their own networks directly with foreign networks to procure Internet bandwidth.

CAT Telecom Plc has been the country's exclusive provider of an IIG service allocating international Internet bandwidth to local ISPs for many years, leaving the ISPs with no cheaper or better alternative.

IIG market liberalisation will increase the number of IIG operators, which are expected to compete in offering cheaper international bandwidth to ISPs.

The situation would enable ISPs to save on bandwidth costs and thus offer lower monthly Internet-access fees to their customers.

One small ISP said the awarding of the type-3 licence might mean the IIG monopoly would shift from CAT to one major private telecom firm.

True Corp Plc is planning to apply for a type-3 licence after its Sky Office subsidiary was granted a type-2 licence from the NTC.

A type-2 licence is for applicants with or without their own network, and competition among the applicants would not affect the public on a wider scale.

The NTC said that initially, Sky Office had to lease CAT's IIG network to procure the bandwidth.

True chief executive Supachai Chearavanont said his company had no intention of monopolising the IIG market and that he supported fair competition.

NTC member Sudharma Yoonaidharma assured the small ISPs that the licensing body would soon introduce the regulations to force the major network operators to offer network-leasing rates at competitive prices and allow fair access to their networks.

A CAT representative said the state agency had no objections to the opening up of the IIG market.

CAT plans to lease its IIG network to those who want to operate an IIG service but do not want to invest heavily in new network infrastructure.

In order to speed up the licensing process, the NTC will permit applicants for type-3 licences either to hire a consultant or to have the NTC work out the details of their qualifications for consideration in granting the licence.

The NTC alone currently works out such qualifications for the applicants, and the process takes time, given its workload.

CAT and TOT Plc are currently the only holders of type-3 licences.

Telecom Reporters

The Nation