Local infrastructure still inadequate, study shows

Thailand's telecom regulatory and policy environment remains weak in terms of legitimacy and enforcement, says the Thailand Development Research Institute (TDRI).

Thailand ranked third out of seven countries in South Asia this year, with 2.7 points on a scale of five, said TDRI research director Duenden Nikomborirak.

Pakistan was the best performer with 3.3 points, followed by India with 2.9 points. The other five countries each received 2.6 points.

The seven countries were Bangladesh, India, Pakistan, Sri Lanka, Indonesia, the Philippines and Thailand.

The research was conducted by TDRI and the international organisation LIRNEasia from 2010-11, with 50 respondents in three groups: operators and equipment manufacturers, industry analysts and legal firms; academics and journalists; and community and consumer groups.

Dr Duenden said the ranking showed no improvement for Thailand from the 2008 research figure, reflecting the country's improper regulatory structures in interconnection (IC), tariff regulation, anti-competitive practices, market entry, access to limited resources, universal service obligation and service quality.

Thailand got the lowest score in interconnection charge because the IC rate in the Thai market was still high at one baht per minute. The charges also do not apply to the state telecom enterprises, TOT Plc and CAT Telecom. The IC on broadband internet remained unclear as the industry regulator failed to settle service provider disputes.

IC rates are fees that operators charge each other for handling calls across various networks.

Dr Duenden said the absence of 3G wireless broadband service and new WiFi expansion has resulted in a sharp decline in new telecom investments, whose contribution to the country's GDP fell from 1.45% in 2001 to 0.2% in 2009.

She pressed the Thai government to amend the Trade Competition Act of 1999 to abolish an exemption provided to the state telecom enterprises.

The National Broadcasting and Telecommunications Commission should clearly define all types of licences to promote transparency, she said, adding that proper regulations are urgently needed to ensure free and fair competition in the industry.
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