Telecoms body cuts type-3 licence fee

The Nation (23 November 2007)

The national telecom regulator yesterday approved lowering the type-3 licence fee to 2.5 per cent from the present 3 per cent of the licensee's revenue, due to the expected negative economic outlook next year.

However, a telecom analyst at one foreign brokerage house said he was disappointed with only a slight reduction, saying the National Telecommunica-tions Commission (NTC) should cut the fee to 1 per cent to reduce the licensees' burden.

NTC secretary-general Suranan Wongvithayakamjorn said the fee reduction would take effect early next year.

The type-3 licence is for applicants with their own large networks whose competition widely impacts mass consumers.

Suranan added that the fee reduction would not affect the NTC's financial status. The licensing body expects total regulatory fees - licence and phone-number fees - of around Bt2.8 billion this year, he said.

He said the NTC has yet to set a plan to cut the other regulatory fee.

The foreign brokerage-house analyst said the NTC should bring down the overall regulatory fee to the lowest level to enable telecom firms to pass on the benefits to consumers in the form of service-fee discounts.

"Don't forget that the NTC's purpose in collecting fees is to run its operation, not to generate revenue for the government. Therefore, it has no need to seek a huge regulatory fee," he said.
Suranan said the NTC will consider further cuts every year.

Wichian Mektrakarn,president of Advanced Info Service (AIS), said it is good thing that the NTC has cut the fee.

TOT and CAT Telecom are among the holders of type-3-licences.

Meanwhile, the licensing body's board has permitted True International Communications and Jastel Network to operate international data communications on a trial basis for another three months.

It also granted a licence to Jasmine Telecom System to operate 10,000 public telephones nationwide. The company will spend Bt165 million on developing the service over the next three years.