Rushing into 3G 'not in public interest'

Korbsak

Deputy premier Korbsak Sabhavasu expressed concern yesterday that the public would not get maximum benefit from the introduction of 3G telecom services planned by the Information and Communications Technology Ministry.

The ICT Ministry will put a proposal to the Council of Economic Ministers today concerning impacts from 3G telecom licences on state-owned TOT and CAT, whose revenues are likely to drop sharply once the 3G licences are issued.

One study cited by Korbsak in an exclusive interview with The Nation showed the state would get less revenue after issuing 3G licences due to a proposed change in benefits paid to the government.

Based on the National Telecommunication Commission (NTC) plan, state-owned TOT and CAT will be affected in terms of revenue, as current telecom concessions will be converted into licences.

Under the concession deals, telecom firms pay 25 per cent of their revenue to the state, which was due to collect an estimated total of Bt300 billion towards end of the concessions.

But if operators manage to move their customers to the new 3G with the choice of number portability, then they will pay only 6 per cent of revenue, which is a big decline from the current contracts.

"It would be unfair to the public if licences are given too cheaply at the expense of over 60 million people, as only some 200,000 people use mobile phones [with 3G capacity].

"On the other hand, I don't think it's bad for the public if we can get high bid prices for 3G licences [even though some critics have suggested such a huge cost would be passed on to consumers]. The fee for end-users would eventually be based on international and market rates. I heard a licence will cost Bt10 billion.

"I also wonder why we should issue four licences in one go as we have three telecom operators right now. Too many licences may hinder competition. In fact, there could be as many as five 3G licences if the one for TOT is also counted.

"One solution might be that the four licences are distributed (handed out) for a set price.

"In my opinion, there is no need to hurry this 3G policy. We will still be fine without it, as such a hurry could cause damage in terms of public interest. We can wait. 3G is good for mobility but otherwise it's not necessary and we can also upgrade Edge," he said.

Korbsak also voiced concern about changes made to telecom concession deals by the Thaksin Shinawatra government, which the Council of State considered illegal, but no action had been taken to remedy them.

"I don't want such a hurry for 3G while these problems have yet to be solved. I'm not sure if it's the NTC's duty to take charge," he said.