Lirneasia Six Country Multi-Component Study 2006-2007: Thailand Report

WDR Discussion Paper No. WDR0701

38 Pages Posted: 28 Feb 2010

See all articles by Deunden Nikomborirak

Deunden Nikomborirak

Thailand Development Research Institute

Harsha de Silva

LIRNEasia

Date Written: 2007

Abstract

Until recently telecommunications services in Thailand were exclusively provided by two state-owned enterprises (SOEs): the Telephone Organization of Thailand (TOT), which held a monopoly over domestic telephony, and the Communication Authority of Thailand (CAT), which had a monopoly in international gateway services. The market division between the two SOEs saw through the development of telecommunications sector in Thailand, but in the early 1990s it was recognized that the future growth of the industry would require infusion of private capital.

A unique scheme to preserve the statutory monopoly of the two SOEs, while accommodating the private sector, evolved. Beginning in 1992, TOT and CAT awarded concessions to private companies to undertake network development and to provide fixed line, mobile, satellite, paging and other communication services, under a Built-Transfer-Operate (BTO) agreement. Under such an agreement private concessionaires would invest in infrastructure and then transfer legal ownership in the installed network to the state operator upon completion. In exchange, they were granted a 25-30 years exclusive use of the network.

Suggested Citation

Nikomborirak, Deunden and de Silva, Harsha, Lirneasia Six Country Multi-Component Study 2006-2007: Thailand Report (2007). WDR Discussion Paper No. WDR0701, Available at SSRN: https://ssrn.com/abstract=1559604 or http://dx.doi.org/10.2139/ssrn.1559604

Deunden Nikomborirak (Contact Author)

Thailand Development Research Institute ( email )

United States

Harsha De Silva

LIRNEasia ( email )

12, Balcomb Place
Colombo, 00800
Sri Lanka

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