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Fri, October 20, 2006 : Last updated 20:17 pm (Thai local time)



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Home > Business > AIS seeks win-win situation





AIS seeks win-win situation

Advanced Info Service (AIS) might be interested in asking the Information and Communications Technology Ministry to cancel its concession if it receives fair and beneficial conditions.

AIS president Wichian Mektrakarn said yesterday that AIS might take the opportunity given by the ministry if the conditions of the cancellation lead to a win-win situation.

On Wednesday, Information and Communications Technology Minister Sitthichai Pookaiyaudom said private telecom concessionaires could ask him to consider freeing them from their state concessions if they feel that the concessions have impeded their competition with the licensees of the National Telecommunications Commission (NTC).

Many years ago, the concessionaires asked their state concession owners and the government to amend their contracts to enable them to compete on the same footing as the telecom operators working under NTC rules and licences.

The relevant parties and scholars proposed several methods of amendment, including one that the concessionaires pay lump-sum compensation to the concession owners after cancellation.

The conversion process failed following criticism that it was aimed at favouring some politically connected telecom operators at the time. Wichian said that this time no one would raise the same criticism. In January, ousted prime minister Thaksin Shinawatra's family sold off its 50-per-cent stake in Shin Corp, the AIS parent, to a group led by Singapore's state investment arm Temasek Holdings.

Sigve Brekke, chief executive of Total Access Communication (DTAC), said it was very good news that the minister would like to be involved because the unequal treatment between concessionaires and licensees had been a concern among private operators.

"We also know that the NTC has tried to do something with this in order to create free and fair competition for all players. With the minister involved, it would be even better for the whole industry," Brekke said.

"A level playing field will create healthier competition, which will definitely benefit consumers in the end. We look forward to meeting the minister to discuss this in detail."

Wichian said that even if AIS was not set free from the concession, it could continue to perform well. AIS holds a concession from TOT Plc.

Soon the state telecom concessions will have no value as all telecom operators ask for new licences from the NTC and then focus on their businesses, Wichian added.

Referring to the possibility that Temasek plans to cut its stake in Shin, Wichian said he had no idea what it planned to do, but if any change led to a positive outcome, AIS would always welcome it.

Officials are investigating allegations that the Temasek-Shin deal involved the use of a nominee, which violates Thai business law.

The AIS share price closed at Bt94.50 yesterday, up from Bt93.

In a related matter, NTC secretary general Suranan Wongvithayakamjorn said the NTC would talk with Sitthichai about the minister's policy of cancelling private telecom concessions.

An NTC source said the minister's initiative was a good sign for the industry as soon the concessionaires and the new licensees would be treated on an equal footing.

Usanee Mongkolporn

The Nation








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