Operators would pay 3% of revenues in licence fees, the high end of a range recommended after recent public hearings, National Telecommunications Commission (NTC) secretary Suranan Wongvithayakamjorn said. Private operators would also pay US$ 0.024 per number per month, but details of fees for frequencies would be decided later, Suranan said.

The new licensing fee structure, which includes satellite services, would be implemented from 2005-2007, Suranan said. The NTC is due to issue its first licenses to state-run TOT and CAT Telecom this week. Other firms are expected to get licenses by December 1.

Existing operators are expected to apply for licenses and those who get them would have to pay an additional 4% of revenues into a fund for the provision of telecommunications services for public benefit, Suranan said. Some analysts have said the new license fees are higher than expected and only a few operators would benefit.

Thailand’s mobile sector includes five operators – with market leader Advanced Info Service (AIS), founded by Prime Minister Thaksin Shinawatra, having a 55% share. AIS competes with number two Total Access Communication (TAC) and number three TA Orange. TOT owns domestic telephone networks and operates mobile phone services through a joint venture, Thai Mobile, while CAT formed a joint venture with Hong Kong's Hutchison to operate mobile phone services. Thailand has three fixed line operators, including True, TT&T and TOT.

Thailand has been struggling with the deregulation of its telecommunications sector since 1997, but progress has been slow and subject to numerous political obstacles.

Source: Reuters - WDR/Intelecon Regulatory News