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Oct. 1--Just when private telecommunication companies and the government were inching toward agreement on a framework for converting state concessions to contracts, a new stumbling block has arisen over compensation to the government.
The Chulalongkorn University Intellectual Property Institute drafted new guidelines at the request of the Transport and Communications Ministry after a previous proposal by the Thailand Development and Research Institute failed to satisfy the private operators.
The Chulalongkorn team is due to submit its proposals to the ministry soon. Key points include compensation that each operator must pay the state telecommunications agencies.
The institute proposed that compensation be counted from the day when the concession is converted to a shareholding agreement until market deregulation, scheduled in 2006.
Private operators said it should be counted from the day of the conversion to the day when the National Telecommunications Commission (NTC) is formed to regulate the industry.
Other guidelines include the continual payment of revenue to the state until deregulation, contradicting the TDRI's proposal that revenue payments stop immediately in exchange for compensation in a lump sum to the agencies.
The amounts would be based on annual revenue paid to the state throughout the concession period.