RESTRICTED
WORLD TRADE S/NGBT/W/3/Add.39
25April 1996
ORGANIZATION(96-1505)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM THAILAND
Response toQuestionnaire onBasic Telecommunications
Theattached communication iscirculated tothemembers oftheNegotiating Group onBasic
Telecommunications.S/NGBT/W/3/Add.39
Page2
PART I
Definitions andMarket Structure
Definition
1. What areconsidered tobebasic telecommunications under yourregulatory regime? Howare
they defined? How does your regulatory regime define thatwhich isnotconsidered basic
telecommunications?
According toThaiTelecommunication laws1,thetelecommunication services aremonopolized
bytwostate-owned enterprises. OneistheTelephone Organization ofThailand (TOT) which is
responsible forproviding domestic telephone andrelated services. Theother istheCommunications
Authority ofThailand (CAT) which isresponsible forproviding postal services, international and
domestic telecommunication service other thantheonesprovided byTOT. However, there aresome
services thatareprovided bybothTOT andCAT. Theprivate sectors areabletocollaborate with
CAT andTOT under BTO (Build-Transfer-Operate concept) inthetelecommunication services.
There isnoexplicit definition ofwhatthebasic telecommunication service is.
2. Does yourregulatory regime distinguish between networks (facilities) andservices indefining
basic telecommunications? Ifso,howisthisdistinction made?
No.Telecommunication entities takecareoftheirownnetworks andservices.
3. Arethereanynetworks orservices which would beconsidered tobebasictelecommunications
within thescope oftheGATS definition which would notbesoconsidered byyournational definition?
Ifso,whatarethey?
There arenonesince basic telecommunications arenotexplicitly defined.
4. Listanybasic telecommunications subsectors orcategories which arereserved tosupply by
monopoly orexclusive supplier(s).
Alltelecommunication services inThailand arereserved.
5. Does yourregime designate oneorlimited number ofmonopoly exclusive suppliers tosupply
anybasic telecommunications nationally, onageographical basis, orforparticular market segments?
Howisit(orthey)constituted(e.g.governmentministryoragency,whollygovernment-ownedcorporate
entity, company partly owned bythegovernment, privately owned?
(Refer toanswer 1)Telecommunication stateenterprises provide theirsolely reserved service.
However, duetotechnology advancement andinterpretation ofrelevant lawsandregulations, the
enterprises andtheircollaborative partners compete witheachother insome services andlocalprivate
sectors canparticipate inproviding telecommunications services under theBTO concept.
1TheTelegraph andTelephone Act(1934).
TheRadio Communications Act(1935).
TheTelephone Organization ofThailand Act(1954).
TheCommunications Authority ofThailand Act(1976).S/NGBT/W/3/Add.39
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6. Isforeign equity participation orownership ofmonopoly orexclusive suppliers permitted?
Ifso,whatisthemaximum percentage share allowed andwhatisthecurrent leveloridentifiable foreign
participation?
No.
7. Ifyourregime isgenerally characterized asnotpermitting competition, please indicate:
(a) Ifcertain activities orcategories ofwhatcould beconsidered basictelecommunications
arenotreserved tothemonopoly, e.g.facsimile, telex, datatransmission, mobile,
satellite services.
Alltelecommunications services arereserved forstateenterprise monopoly.
(b) Arethereanyothermeans through which foreign suppliers ofbasictelecommunications
areormayparticipate inthesupply ofbasic telecommunications, e.g.subcontract or
build-operate-transfer arrangements withthemonopoly suppliers.
No.
8. Please listandbriefly describe anyintergovernmental agreements, bilateral orotherwise, that
yourGovernment hasentered intorelating tothesupply ofbasic telecommunications networks and
services.
None.S/NGBT/W/3/Add.39
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PART II
Competition
A. SUBSECTORS
(a) Voice telephone services;
(b) packet-switched datatransmission services;
(c) circuit-switched datatransmission services;
(d) telexservices;
(e) telegraph services;
(f) facsimile services;
(g) private leased circuit services; and
(h) other i.e.
B. CATEGORIES
(a) Local/long distances/international;
(b) wire-based;
(c) radio-based;
(d) resale-based;
(e) facilities-based;
(f) public/non-public supply.
Forthesubsector andcategory heading inSection AandBabove.
(i) Overview. What arethemaingovernment policies andregulations regarding thecompetition
inthissubsector orcategory? Canforeign suppliers participate inthesupply ofbasic
telecommunications inthissubsector orcategory?
According toThaitelecommunication laws, theservices inthesubsectors orcategories
aremonopolized andprovided byTelecommunication State Enterprises. However, dueto
technology advancement andinterpretation ofrelevant laws andregulations aswellas
government 'spolicies, private sectors wereallowed tocollaborate withtheconcerned entities
inproviding some basictelecommunications andvalue-added services under thebuild-transfer
andoperate concept.
(ii) Modes ofsupply. InyourviewhowdotheGATS modes ofsupply (cross border, consumption
abroad, commercial presence, andpresence ofnatural persons) apply tothissubsector orS/NGBT/W/3/Add.39
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category? What kinds ofrequirements, conditions, orlimitations areapplied inthissubsector
orcategory which relate toeachmode ofsupply?
Duetothefactthatalltelecommunication services aremonopolized; therefore cross
border, commercial presence andpresence ofnatural persons arenotpermitted. Except
consumption abroad.
(iii) Market access. What kindoflimitations onmarket access areapplied? (i.e.arethere any
quantitative limitations on,oreconomic needs testsapplied to,thenumber ofsuppliers? Are
thereanylimits onthetotalvalue oftransactions, totalnumber ofoperations, quantity ofoutput,
orthetotalnumber ofpersons thatmaysupply basic telecommunications orbeemployed by
asupplier? Arethere anyrestrictions orrequirements regarding typeoflegalentity thatmay
supply basic telecommunications? Arethere anylimits onforeign ownership orequity
participation?)
There arecertain conditions onmarket access astheStatetelecommunication entities
arethesoleoperating agencies. Theprivate sector isallowed tocollaborate withtheentities
under theBTO concept. Nevertheless, theGovernment isundertaking telecommunications
business reform ofthecountry aiming atthemostfreecompetition ofthetelecommunication
liberalization.
(iv) National treatment. What kindoflimitations onnational treatment areinplace extending to
foreignsupplierstreatmentlessfavourablethanthatfordomesticsuppliers?(e.g.arepreferences
given todomestic suppliers orrestrictions orobligations imposed onforeign suppliers with
respect toanyprocedures orregulations, including licensing? Arethere anylimitations on
thenationality orresidency ofmanagers, directors, orboard members? Arethere any
restrictions onforeign ownership oflandorfacilities?)
There arenolimitations aslongasforeign equity participation does notexceed
20percentandthecompany must register asaThaicompany.
(v) Licensing. Iflicensing isrequired inthissubsector orcategory, briefly describe theprocedures
concerned andexplain themain requirements, criteria andfeesapplied. What aresome of
theprincipal terms andconditions onlicensees, oncealicence isobtained?
Private companies areallowed tocollaborate withentities inproviding services under
theBTO concept.
Local/long distance/international
1. How arelocalanddomestic longdistance distinguished ordefined?
- Wedefine asfollows:
Local means:
- callswithin metropolitan areas (Bangkok including Nonthaburi, Pathumthani
andSamutprakan);
- callswithin thesame areacode.
Domestic longdistance means:S/NGBT/W/3/Add.39
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- callsbetween metropolitan areaandprovincial area;
- callsbetween different provinces.
2. Arethere anyregulatory orother distinctions between domestic (local andlong-distance) and
international networks andservices andbetween thesuppliers ofbasic telecommunications inthese
market segments? Ifso,whatarethey?
According toThaitelecommunication lawsandgovernment policies, TOTprovides localand
long-distance telephone services, including boundary countries, while CAT provides international
telephone services. They invest andoperate, onamonopoly basis, theirowncorresponding system.
Resale basic
3. Doyourregulations permit international resale ofprivate leased circuit capacity ifconnected
tothepublic network. Ifso,atoneend? atbothends? Under whatconditions? Isresale ofswitched
voice capacity permitted?
Neither resale ofprivate leased circuit, whether connected tothepublic network ornot,nor
resale ofswitched voice capacity isallowed.
4. Isresale ofprivate leased circuit excess capacity permitted? Ifso,under what conditions?
Maybasic telecommunications beresold tomake them available tothird parties? Forwhich basic
telecommunications isthispermitted?
Telecommunication entities donotpermit resale ofthedomestic private leased circuit.
Facilities-based
5. Maybasic telecommunications suppliers (foreign anddomestic) construct andoperate their
ownnetworks orinvest inconsortia toconstruct andoperate suchfacilities? Ifnot,whatorganizations
arepermitted toconstruct andoperate basic telecommunications network infrastructures?
No,except suppliers already collaborating withtheenterprises under theBTO concept.
Public/non-public supply
6. Does yourregime make distinctions between suppliers ofpublic switched andnon-public basic
telecommunications? Ifso,how?
No,wedonot.
7. What basic telecommunications doyourregulations require, explicitly orineffect, tobemade
available tothepublic generally?
Allkinds ofservices.
8. What basictelecommunications doyourregulations permit tobesupplied onanon-public basis
(i.e.notrequired tobemade available tothepublic generally)?
Anyvoice andnon-voice network andservice mustusepublic telecommunication network under
national telecommunication authorities.S/NGBT/W/3/Add.39
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9. What obligations orresponsibilities areincurred bystatus asapublic basictelecommunications
supplier andunder whatconditions? e.g.whatkindof"common carrier-like" obligations areimposed
(e.g.withregard touniversal service), andonwhom?
Ourtelecommunications operator isStatemonopoly, therefore thesuppliers mustcollaborate
withtelecommunication entities under theBTO concept.
10. What, ifany,restrictions arethere onorganizing andoffering aprivate network bya
telecommunication supplier?
Theprivate network services areprovided bytelecommunication entities. Inother words,
thecustomers have tolease thefacilities from telecommunication entities. Wedonothave any
restrictions fortelecommunications suppliers inorder toofferaprivate network, because oftheState
monopoly. They must usepublic telecommunication network under national telecommunication
authorities.
11. Istheoperation ofpublic pay-phones reserved tomonopoly orexclusive suppliers?
Thenational public pay-phone andpre-paid cardphone aremonopolized andtheinternational
pre-paid orcredit cardphone aremonopolized bytelecommunication entities.S/NGBT/W/3/Add.39
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PART III
Regulatory Issues
Relationship between regulatory andoperational functions
1. Doanybasic telecommunications suppliers become involved, directly orindirectly inmaking
regulatory policy, enforcement ofregulations, informulating standards orenforcing standards?
Atpresent, according tothelaws, telecommunication entities areboth regulator and
operator/service provider aswellasformulating standards. Telecommunication entities aretheState
monopoly whodefine theregulatory policy andformulate standards fordomestic telecommunications
network andservices. When independent regulatory bodies willbecreated inthefuture, itwillbe
responsible forthese duties.
2. Isyourregulatory authority (orauthorities) alsoresponsible forformulating standards and
enforcing standards?
Atpresent, according tothelaws, telecommunication entities areboth regulator and
operator/service provider aswellasformulating standards.
3. Howmany levels ofgovernment (e.g.national, regional, state, local) haveresponsibility for
regulationaffectingbasictelecommunications?Pleaseidentifyanddescriberelevantlevelsofgovernment
authority. Arethereanyprocedures enabling suppliers toresolve questions ordisputes theymayhave
ortoappeal adecision withtheregulatory body concerned? Ifso,please describe.
Therearethreegovernmentallevelswhichhaveresponsibilityforregulatingtelecommunications
network andservices:
Government (Cabinet): approve thebudget andsetthepolicy.
Ministry ofTransport and
Communications (MOTC): implement andfollow-up policy.
Telecommunications entities: operate/provideservices,inthemeantimealsoactasregulators.
Atpresent, there isnoprocedure concerning solving thedispute. Disputes aretobeappealed
totheMOTC orentities concerned.
Frequency allotment orassignment
4. What aretheprocedures, requirements andcriteria applied fortheallotment orassignment
ofradio frequencies?
ThePostandTelegraph Department (PTD) manages andassigns radiofrequencies inaccordance
withthe1955 Radiocommunications Actformaximal usesandbenefits. Allapplications must be
submitted tothePTDbefore passing forapproval from theNational Frequency Management Board
where thePTDserves astheSecretary.
5. Doforeign telecommunications suppliers receive national treatment under these procedures
andcriteria?S/NGBT/W/3/Add.39
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No.
Numbering andidentification codes
6. What aretheprocedures, requirements andcriteria usedtoassign numbering andidentification
codes?
TOT isresponsible forassigning numbering andcodes oftelephone services while CAT is
responsible forpacket-switched, circuit-switched, telegraph andtelexservice byusing theprocedures
andcriteria ofTSBRecommendation toassign numbering codes ofnetworks. Itdoesnotdetermine
useofanyidentification codes.
7. Doforeign telecommunications suppliers receive national treatment under these procedures
andcriteria?
No.
Standards, typeapproval andequipment attachment
8. What types ofmandatory standards areinplace?
Weadopt anddeploy types ofmandatory standards which areITU-T andITU-R standards
aswellasworldwide accepted standards.
9. When astandard isunder review oranewstandard isbeing developed byyourstandards
authority, isthereanopportunity forpublic review andcomment priortoitsadoption? Mayforeigners
participate inthisprocess? Maytheprivate sector participate inthedevelopment ofstandards? If
so,how?
No.
10. Whatequipmentissubjecttotypeapproval?Isself-certificationallowed?HasyourGovernment
concluded mutual recognition agreements fortelecommunications equipment certification? Arethey
required forforeign produced equipment?
Type approval isrequired formobile phones andterminal equipment while onlyspecification
evaluation inadvance isrequired forothers suchasmodem oranyinterface unit. Thetypeapproval
mostly certifies foreachmodel ofproducts, notbylotsofimportation. There isnomutual recognition
agreement fortelecommunications equipment certification. They arerequired forforeign produced
equipment.
11. Howistheability toattach terminal equipment tothenetwork regulated? What restrictions
arethere onterminal equipment thatmaybeattached tothenetworks?
Normally, theendterminal, available inthemarket, maybeattached tothepublic network
except those requiring typeapproval. Product sellers usually forward thespecification ofproducts
totelecommunication entities forevaluation toensure compatibility. However, inallcases
telecommunication entities maydisconnect anyterminal equipment ifharm iscaused bythatequipment
tothenetwork ortothemaintenance staff. Theability toattach terminal equipment totheregulated
network is:S/NGBT/W/3/Add.39
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- Type approval andpermission from telecommunication entities areneeded. The
restriction onterminal equipment thatmaybeattached tothenetwork areasfollows:
- theterminal equipment must passtypeapproval;
- theapplication must bepermitted bytelecommunication entities; and
- theuserhastopractice withtherequirement permitted bytelecommunication
entities.
12. Maybasictelecommunicationssuppliersconnectedtothepublicnetworkusetheirownswitches?
Since telecommunication entities aresolely telecommunication suppliers intheircorresponding
services, theirnetworks/switches areinterconnected.
13. Does theGovernment require network-based suppliers topermit theattachment ofcustomer-
supplied terminal equipment?
Normally, theendterminal available inthemarket maybeattached tothepublic network except
those requiring typeapproval. Product sellers usually forward thespecification ofproducts tothe
telecommunication entities forevaluation toensure compatibility. However, inallcases
telecommunication entities maydisconnect anyterminal equipment ifharm iscaused bythatequipment
tothenetwork ortothemaintenance staff.
Interconnection
14. Ingeneral, howisinterconnection regulated inyourregime? What aretheregulations applied?
Since telecommunication entities monopolize andactasbothregulators andsuppliers intheir
corresponding telecommunication services, therefore theinterconnection within telecommunication
entities own network issolely subjected toeach ofthem. Interconnection between thetwo
telecommunication entities closely cooperate toarrange theinterconnection. Ifdisputes arise, thethree-
party working group (composed ofTOT, CAT andMOTC) willbeformed toresolve thedisputes.
15. Doyourregulations require network-based suppliers toprovide interconnection forother basic
telecommunications network orservices suppliers? Ifso,please describe?
Seeanswer in14.
16. Isinterconnection between leased circuits andpublic datanetworks permitted?
Yes.
17. What aretherulesandregulations regarding thepricing ofinterconnection? Areinterconnection
charges setinrelation toanyprinciples (e.g. cost-oriented)? Isthere arequirement tosubmit
interconnection charges toaregulatory bodyforapproval? Arethesameinterconnection charges applied
toallsuppliers requesting interconnection oraretheynegotiated onacase-by-case basis? What
requirements orobligations exist topublish, make publicly available, ortosupply details of
interconnection agreements toregulatory authorities?
Theinterconnectionchargesnormallyusetheordinarytariffofeachservice(asnormalcustomer)
which isapproved bytheBoard ofDirectors oftheoperating entities andtheCabinet. However, thereS/NGBT/W/3/Add.39
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areother charges thatCAT paystoTOT forinterconnecting itsinternational telephone gateway and
mobile network toTOT'sPSTN, which maybecalled revenue sharing. These charges aredependent
onnegotiation andaremutually accepted, sometimes thethree-party working group isrequired.
Competitive safeguards
18. Whatkindsofsafeguardsdoesyourregimehaveagainstanti-competitivepracticesofmonopolies
ordominant suppliers insituations where theymaycompete withother firms tosupply certain basic
telecommunications inthedomestic market? intheinternational market?
Telecommunication services inThailand aremonopolized butthere iscompetition insome
services such ascellular, paging, trunked radio, domestic VSAT which areprovided by
telecommunication entities andtheircollaborative partners. Atpresent, therearenosafeguards against
anti-competitive practices. However, ifanunfair competition issuearises, theMOTC willtakeaction
toresolve it.TheGovernment alsohasapolicy tosetthenewlawswhich willcreate anational
regulatory body totakecareofalltelecommunication services policies andissues including pricing
andfaircompetition.
19. Doyourregulations distinguish between dominant andnon-dominant suppliers? Ifso,what
arethedetails andhoware"dominant" and"non-dominant" defined? Arethere anysafeguards
concerning suppliers whohavemonopoly ordominant control ofaccess tocertain market ornetwork
segments?
No.
20. Isthere anindustry-wide anti-trust policy and/or anytelecommunications-specific anti-trust
policy? What aretherules andregulations regarding mergers andacquisitions?
No.
21. Arethere anysafeguards concerning basic telecommunications suppliers alsoengaged inthe
manufacturing oftelecommunications equipment? Ifso,please describe thecontent andworking of
these safeguards.
No.
Pricing-related measures
22. What istheroleoftheGovernment oranyrelated agency withregard toestablishing prices
(e.g.tariffs, access charges, accounting rates) orpricing policy? e.g.doestheGovernment setprices
oraccounting rates, directly orindirectly (e.g. price capsorrateofreturn controls), ordobasic
telecommunications suppliers determine thesethemselves? What requirements orobligations doesthe
Government setregarding prices charged bymonopoly/dominant suppliers orother suppliers?
Service tariffs ofTOT havetobeapproved bytheCabinet andtelecommunication services
tariffs ofCAT areapproved bytheBoard ofDirectors oftheoperating entities. Theaccounting rates
forinternationaltelecommunicationservicesarebilateralagreementbetweenCATandtelecommunications
suppliers orcarriers inother countries. Actually, there arenorules regarding tariff setting butthe
cost-based approach istaken intoaccount. Once thetariff approval isobtained, itwillbepublicized.
23. DoestheGovernment require tariffapproval ornotification and,ifso,whataretheprocedures?
What requirements regarding cost-accounting areputinplace toensure transparency?S/NGBT/W/3/Add.39
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Seeanswer in22.
24. Towhatextent istheprinciple ofnon-discrimination applied inpricing? e.g.,isatariffpackage
suchasavolume discount targeted foraspecific group allowed andifso,what aretheterms and
conditions applied? Areaccounting ratesapplied onanon-discriminatory basis between countries?
Ifaccounting ratesapplied indifferent agreements arenotthesame, whatarethecriteria usedtoarrive
atdifferent accounting rates? Aresome ofthese criteria required ordefined bytheGovernment.
Inprinciple, pricing policy isnon-discriminatory.
25. Doanybasic telecommunications suppliers getinvolved insetting industry-wide tariffs?
No.
26. Onwhat basis areprices (e.g.tariffs, access charges, accounting rates) determined? What
concepts areapplied regarding costs? Isthereageneral principle applied regarding allocation ofcosts?
Iscost-oriented pricing ofbasic telecommunications usedorrequired bytheGovernment? Ifnot,do
basic telecommunications suppliers usecost-oriented pricing?
Tostimulate economic growth andthequality oflifeofpeople, theGovernment haspolicies
tokeepitlowandcost-based, andtoprovide services aswideaspossible.
27. Arethere anyrules specific tothepricing ofanewservice?
Yes.
Rights ofwayfortheconstruction ofinfrastructure
28. Arebasic telecommunications services suppliers permitted tobuild theirowninfrastructure
orfacilities? Ifso,what aretheprocedures andcriteria forauthorization tobuild infrastructure of
facilities? What aretheprocedures, criteria, limitations orqualifications applied withrespect tothe
granting of/or theavailability ofrights ofwayfortheconstruction ofinfrastructure orfacilities?
Telecomentitieshaveauthoritytobuildtheirowninfrastructure.However,frequencyspectrums
usedinthesystem including importing radio communication equipment havetobeapproved bythe
PostandTelegraph Department (PTD). Cable installation andanyconstruction works havetobesought
forapproval fromtherelevant government departments inthatareaandhavetoensure thatthere will
bereasonable measures toavoid anyinconvenience anddamage toothers.
29. Isnational treatment extended toforeign basic telecommunications suppliers under these
procedures andcriteria?
No.
Newtelecommunications services
30. Please describe anygeneral regulatory processes orprocedures thatapply todealing withthe
introduction of"new" telecommunications services. Prior toanyrelevant regulatory procedure having
beencompleted, isitnotpossible forsuchnewservices tobesupplied?
Newservices willbeintroduced andinitiated byTOT andCAT (under theircorresponding
responsibility) iftheyfinditappropriate, profitable, useful andofbenefit tousers. Investment andS/NGBT/W/3/Add.39
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marketing plans aresetonetotwoyears before introducing theservice. Budget, mostly self-financing
hastobeapproved bytheCabinet. However, telecommunication entities mayissue openbidding to
invite theprivate sector toparticipate innewservices under theBTO concept.
31. When anewservice becomes possible oravailable, whodetermines thestatus ofthenewservice
(whether itisbasic orvalue-added) andunder whatprocedure andtime-frame?
There isnoexplicit definition astowhatthebasic andvalue-added services are.