thai telecom market liberalization
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Thai Telecom market liberalization. WTO agreement on telecom services liberalization Semi-liberalization by giving concession to private operators in the 1990s Thai Government fully privatize and liberalize telecom services in 2006. Sharing revenue in Concession. Subscribers / Clients. - PowerPoint PPT PresentationTRANSCRIPT
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Thai Telecom market liberalization
• WTO agreement on telecom services liberalization
• Semi-liberalization by giving concession to private operators in the 1990s
• Thai Government fully privatize and liberalize telecom services in 2006
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Sharing revenue in Concession
State-ownEnterprise
• TOT• CAT
Concessioner
Operators• Shin• Samart• UCOM
Ministry of Finance
Partial Income
SharingRevenueas concession
fee
• Jasmine• CP
Subscribers
/ Clients
ServicesPayments
![Page 5: Thai Telecom market liberalization](https://reader036.vdocument.in/reader036/viewer/2022062305/56815a72550346895dc7d444/html5/thumbnails/5.jpg)
TOTOwn sources of revenue• Fix Lines• Public phone
BTO Concession• Fix lines (Bangkok) - TA• Fix lines (Rural) - TT&T• Mobile phone - AIS• Paging - Hutchison, Worldpage, Phonelink
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CATOwn sources of revenue• International phone• Postal services• ISP (Internet Service Provider)• Mobile phone
BTO Concession• Mobile phone – DTAC, TAOrange, DPC• Satellite - Thaicom• Paging – Paclink, Easycall
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After Telecom Liberalization
• Concessions of TOT & CAT be eliminated
• TOT and CAT only be one player, not a controller anymore
• New organization be established for control a game
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Telecom Reform Developments Before
Liberalization• Privatization of TOT and CAT
• Formation of the NTC
• Telecommunications concession conversion
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• Slack privatization cause the NTC has not been established
• TOT accomplished to be TOT Corporation in 2002
• Plan to list TOT & CAT in the Stock Market
Privatization of TOT and CAT
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• The NTC is independent regulatory organization
• Governed by seven-member board
• Lack of transparency about candidates selecting
Formation of the NTC
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Telecom Concession Conversion
• What is the best way to converse telecommunications concession before liberalization?
TDRI frameworkCU framework ICT framework
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TDRI Framework2006 2015
Lump sum payment on NPV
Discounted byappropriate rate
xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
X
X
X
X
X
X
X
X
X
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TDRI Framework
• Problems
What is appropriate discount rate ?
Many private firms reject it, cause it less competitive than new entrants
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CU Framework2006 2015
No payment after market
liberalization
xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx
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CU Framework
• Problems
Unfair for new players
Government losing benefits
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ICT Framework
ConcessionerConcessioner
Ministry of FinanceMinistry of Finance
TOT & CATTOT & CATConcession fee
Excise tax
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ICT Framework
• Problems
Shoving tax responsibility to consumer
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Conversion Principle
• Fair game for any players
• Reduction in government revenue as low as possible
• Benefit to consumer
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