Samart Corp is weighing whether to bid for a 3G-2.1-gigahertz spectrum licence or to become a mobile virtual network operator (MVNO) to provide third-generation wireless broadband service. Company president Watchai Vilailuck said the company would make a final decision within a few days.
Malaysia's major telecom operator Axiata, which owns 18.96 per cent of Samart, is believed to have approached Samart to join with it to bid for the licence. Watchai said several foreign telecom operators had also approached Samart to join in the bid but he declined to reveal their names.
Recently, commissioner Natee Sukonrat of the National Telecommunications Commission said Axiata was interested in the 3G licence. The NTC visited many foreign telecom operators in the past months to woo them to bid for the licences.
But Watchai said many foreign telecom operators were concerned with the NTC's draft rules to prevent foreign dominance of local telecom operators.
"Many of them are eager to bid for the licences and invest in the 3G business. But they think they should have a big say in the business too if they have to sink a great deal of money into it."
The NTC will hold a hearing on the draft with local telecom operators on Friday.
The draft defines "foreign dominance" as foreigners' direct or indirect control or influence on a company in setting policy and management to an extent greater than is permitted by their share ownership. Conduct or behaviour deemed to be foreign dominance includes the use of nominees and foreign ownership that exceeds the level permissible by law.
It also includes foreign shareholders or proxies having the authority to appoint key executives in the companies, and covers the recruitment of foreigners connected with foreign shareholders to key policy-making posts.
The rules will be applied to both 3G licence holders and private telecom concession holders. The NTC will order businesses to remedy the situation if they are found to have breached the rules.
Watchai said that if Samart decides not to bid for the licence, it would opt to provide the 3G service on the MVNO basis instead. An MVNO is a company without its own network that has leased the network of a telecom operator to provide the service.
The NTC's 3G licensing regulations require the licence holders to reserve a maximum 40 per cent of their network capacity for lease to MVNOs.
Currently Samart's mobile-phone distributor subsidiary, Samart i-Mobile, has marketed the 3G service for TOT under an MVNO deal. The state agency debuted the 3G network in Greater Bangkok last December.
Five companies have already picked up licence applications. They are True Corp's subsidiary SK Wireless, Advanced Info Service and its subsidiary AWN, and Total Access Communication and its subsidiary DTAC Internet Service.
Companies interested in bidding for the licences must submit the application forms to the NTC by August 30.