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TDRI: Raise foreign investor cap
Bangkok Post – 20 November 2008
KOMSAN TORTERMVASANA
The Telecom Business Act should be revised to allow foreign investors to hold more than 49% of telecom companies to strengthen the industry's competitive edge, according to the Thailand Development Research Institute (TDRI). TDRI vice-president Somkiat Tangkitvanich said the telecom sector was currently lagging the development of the country's information and communications technology (ICT) business.
But this could be resolved through allowing foreign holding of over 49% in telecom firms so newcomers bring new technologies into the market.
While the International Institute of Management Development places Thailand 27th in the world for overall competitiveness, the country is ranked only 49th for its ICT competitiveness _ a reflection, said Mr Somkiat, of how ICT development is being impeded.
He gave another instance in the cost of providing broadband internet access, which is 11% of revenue in Thailand but only 0.1% in Singapore.
He added that the penetration of internet use is a key indicator of a country's competitiveness, particularly for broadband and high-speed internet like WiMax and 3G.
He said that introducing new investors and technologies such as WiMax would promote competition and benefit the industry through lower service tariffs and a higher number of users.
But Advanced Info Service chief commercial officer Sanchai Teawprasertkul said WiMax licences should not be extended to many newcomers or foreign investors because Thai investors could not compete with them in terms of capital.
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