CAT loses IIG monopoly

The national telecom regulator yesterday removed CAT Telecom's monopoly on international Internet gateway (IIG) services by allowing other licensees to connect directly with foreign carriers as well.
The National Telecommunications Commission (NTC) board's decision is a revision of its previous IIG regulations that required licensees to connect with foreign carriers only via CAT's facilities. NTC secretary-general Suranan Wonvithayakamjorn said the board resolved to allow holders of its type-2 IIG licence to connect directly with foreign carriers to provide the service to local Internet service providers (ISPs). True Corp is one of the major holders of the type-2 IIG licence, which is for ISPs without their own network. CAT holds a type-3 IIG licence, which means it has its own gateway network. Yesterday's decision gives local ISPs an alternative to CAT's gateway service. In response, CAT said it planned to ask the NTC to revise its draft regulations controlling the pricing of IIG services, as they apply only to holders of the type-3 licence. This means that True, as a type-II licence holder, could easily use pricing strategy to compete with CAT in the IIG market.
Telecom Reporters The Nation
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