New Proposal Aims to Sort Out Conversions by Thai Telecommunications Operators.

Byline: Mongkol Jullayothin

Dec. 5--Telecommunications operators that convert their concessions with state agencies would no longer have to pay compensation, under the latest proposal intended to speed up the stalled conversion process.

Instead, operators could choose to buy back or rent the networks they had transferred to the state under their build-transfer-operate concessions.

As well, existing revenue-sharing agreements with the state would end as soon as the new National Telecommunications Commission (NTC) is formed, the committee overseeing the conversion process decided yesterday.

The union at the Telephone Organisation of Thailand immediately vowed to protest against the plan, saying that the government stood to lose up to 100 billion baht in compensation revenue.

Compensation has been a big stumbling block, with operators saying that the sums originally proposed would bankrupt many of them. Earlier guidelines had based compensation on projected revenues over the remaining terms of the concessions, some of which had 15 or more years remaining. The proposed terms were later eased but they remained contentious.

State agencies, on the other hand, are uncomfortable with network buy-back proposals, as they suspect operators will offer unreasonably low prices.