Bangkok--10 Nov--DTAC
DTAC and True Move have joined forces in the fight for justice against the biggest mobile phone operator Advanced Info Service (AIS). Thailand’s second and third largest mobile operators have approached industry regulator NTC in retaliation to a discriminatory and uncompetitive telecom playing field which has benefited AIS at the expense of other operators and has cost the government billions of baht.
The two operators are seeking clarification on four major issues: revenue share reduction, access charge waiver, price dumping and number portability.
DTAC and True Move have today sent a letter of complaint to the NTC, copying the ICT Minister, asking the NTC to take disciplinary action against these unfair and discriminatory practices of AIS. Specifically:
Revenue share reduction: AIS currently pays a lower rate of annual remuneration at 20% throughout the remaining term of the agreement for prepaid mobile telephone services which constitutes a big share of the market. At the same time, other operators have been paying a 25% rate which has now been increased to 30%. AIS clearly has lower operating costs than other service providers, and is benefiting from the immediate lower price and from cost savings of around Baht 85,000 million - 100,000 million throughout the term of the agreement.
Access charge waiver: Access charges have been waived for AIS, although DTAC and True Move have to pay these charges. As a result, AIS enjoys significantly lower operating costs than its rivals.
Price dumping: The artificial reduction in AIS’s operating costs allows AIS to engage in price-dumping tactics which destroy the market’s competitiveness and damage the Thai economy. These actions infringe the NTC’s restrictions on monopolies and market dominance. Although initially consumers will benefit from lower prices, in the long-term smaller operators will be unable to compete, AIS will dictate market mechanisms, gaining control of the industry, and the ultimate loser will be Thai consumers who will lose their ability in choosing their preferred services.
Number portability: Number portability will benefit consumers by encouraging all operators to constantly improve their service quality and efficiency to retain and attract subscribers. Without number portability there will be no freedom of movement for consumers to migrate from one service provider to another of their choice while retaining the same mobile phone number. The lack of mobility benefits only AIS, which has the biggest customer base and the most to lose from migration. According to the Telecommunications Five-Year Master Plan, the issue of number portability should be finalized by the end of 2006. However, with only seven weeks left to the end of the year, there has been no sign of progress.
“The uneven playing field is against the ‘free and fair’ competition and has already caused a tremendous loss to TOT and Thai consumers. Since consumers will be the main beneficiaries from a fair competition, we hope the NTC and the ICT Ministry will take all necessary steps to stop the current anticompetitive practices. We are ready to give our fullest cooperation in providing further clarifications to the authorities whenever needed,” said Mr Sigve Brekke, DTAC’s Chief Executive Officer.
Mr. Supachai Chearavanont, President and Chief Executive Officer of True Corporation Plc said: “AIS as the biggest player has an advantage over other players by enjoying artificially lower operating costs. This is damaging the telecom liberalization process and causing other operators to lose their ability to compete. If nothing is done, the industry will lose its transparency, return to a monopoly situation, and the consumer will have less choices. Rather than focusing on taking advantage of agreement conditions and unfair regulations, operators should concentrate on service innovations and development to create value and fulfill customers’ needs which will greatly benefit consumers and the country’s economy. Most importantly, every operator should function under the same conditions and principles to create and ensure a free and fair competitive environment. I believe that the age of discriminatory practices should be ended.
“By submitting this joint complaint to the NTC and copying it to the ICT Minister, DTAC and True Move are asking for a resolution to the issue and the elimination of unfairness and discrepancies in the way various operators are treated. Creating and nurturing fair competition among operators, as well as developing a clearer vision for telecommunication liberalization, will prevent significant damage to the whole telecom industry and the Thai economy in the long run.”
Mr Brekke and Mr Supachai stressed that the two operators’ decision to submit their joint complaint was not a battle about winning or losing.
“Our objective is to call for fair and free competition for all operators under the same regulations with no exception or special privileges so that the Thai telecom industry will be able to develop and grow in line with the global industry. Thai people need to have choices and the opportunity to benefit as much as possible from those choices. DTAC and True Move will flight to the end for justice and transparency.”
For more information, please contact:
Media Relations Unit, DTAC
Matchima Chanswangpuwana Tel: +66 (0) 8 1655 2173 Email: [email protected]
PR Department, True Group Ref: (178) 09/11/2006
Pimolpan Siriwongwan-ngarm Tel: +66 (0) 2699 2772 Email: [email protected]
Sisadhi Reuben Tel: +66 (0) 2643 2463 Email: [email protected]
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