The regulator also approved draft regulations to prevent monopoly situations in the telecom industry.

Both drafts are subject to public hearings, which will be conducted through www.ntc.or.th, before they are enacted.

The NTC also announced yesterday that representatives from four embassies - Singapore, the United States, Norway and Australia - would today meet with the commissioners to clarify some doubts over the draft regulations on foreign dominance which are now in the public consultation process.

"They are upset that the regulations go into too much detail. They consider that the foreign dominance regulations are unnecessary with the presence of the Alien Business Act, which allows foreign participation in a Thai company up to 49 per cent," said a source in the telecom industry.

Through the regulations, the NTC would also determine whether a telecom company is Thai through the power of foreign directors, and not only through equity participation.

Under the draft regulations on telecom business deals, NTC member Sudharma Yoonaidharma said yesterday that all Thai operators must send all deals pending with foreign partners to the agency for inspection. Documentation must be submitted within 30 days before the deal is expected to be finalised. Without NTC approval, the deal cannot be signed.

"We are doing this to prevent foreign domination. We're afraid that Thai companies could be taken advantage of," Sudharma said.

The regulations would affect most Thai companies which have conducted business with foreign partners. For instance, Advanced Info Service Plc with Singapore Telecommunications, and True Corp Plc with SK Telecom and others.

The draft regulations are part of the NTC's moves to prevent foreign dominance. They face strong opposition from foreign companies, including Telenor of Norway and Temasek Holdings of Singapore.

On the anti-monopoly front, the NTC plans to prohibit telecom operators from subsidising any services and from holding over 10 per cent of another company in the same industry. Operators with a market share of more than 25 per cent must not exercise their power in such a way that it adversely affects other companies. All companies must adopt fair practices.

If any operator fails to follow the rules, it would be subject to questioning by a committee and, if found guilty, would be punished, Sudharma said.

On May 3, the NTC will organise a workshop where all operators and related agencies can discuss the options for resolving disputes within the sector. "There are so many conflicts right now," he said.

At present, there are dozens of disputes, including the one between TOT Plc and True. While the arbitration court ruled that TOT must pay True about Bt9 billion in compensation for a network access fee, TOT has asked the Administrative Court to nullify the arbitration court's judgement.

Usanee Mongkolporn

The Nation