“Enforcement [of Section 44] would instil confidence among mobile operators that there is no risk of service disruption after concessions expire despite their mobile network assets having been transferred to concession owners,” an industry source said.
“The faster the completion of network asset transfers, the clearer the business strategies of state telecoms TOT Plc and CAT Telecom.”
In addition, the move could accelerate development of telecommunications network-sharing, considered a crucial step in developing the digital economy.
Section 44 gives Gen Prayut, in his capacity as chairman of the National Council for Peace and Order, the unfettered right to exercise the powers of the executive, legislative and judicial branches for security and in the national interest.
Mobile operators must transfer their network assets after their concessions expire under a build-transfer-operate concession.
But they are reluctant to transfer all their networks to their concession owners for fear it would result in a high risk of operation disruption.
Advanced Info Service, Total Access Communication and True Move remain locked in arbitration cases worth almost 100 billion baht with TOT and CAT including network asset transfers.
A recent resolution by the State Enterprises Policy Commission requires the two state telecoms to settle all disputes before seeking private partnerships, a major effort in turning around their businesses.