[November 24, 2009] Telenor chief slams 3G delay: CEO says foreign holdings all in order Tweet HONG KONG, Nov 23, 2009 (Bangkok Post - McClatchy-Tribune Information Services via COMTEX) -- Telenor of Norway, the major shareholder of the local mobile operator DTAC, has condemned the Thai government's move to delay the 3G licence auction as a setback for the telecom industry and economic development. The company also rejected allegations of a foreign shareholding violation. Telenor is confident the shareholding structure in DTAC is in full accord with Thai law, and will continue its 3G investment project in Thailand, said president and CEO Jon Fredrik Baksaas. The company placed great emphasis on complying with laws in every country in which it operates, he said. "We are sure that we did everything in full compliance with Thai law," he said last week during at the GSMA Mobile Asia Congress 2009 in Hong Kong. Some critics of the 3G process have claimed that the rules for licence auctions favour companies with deep-pocketed foreign shareholders, which would end up controlling a national resource. Sigve Brekke, the CEO of Telenor Asia, also said the Thai government should not allow long-disputed concession issues between private operators and concession providers to delay the arrival of 3G services and the benefits they will bring consumers. "It would be good if the government wants to convert concessions. But it should be done in parallel with 3G licence issuance," he said. Mr Brekke said the Commerce Ministry had twice asked DTAC to clarify its shareholding structure, before and after listing on the Stock Exchange of Thailand. Thailand is ready for 3G and the government should take the opportunity to establish the market by setting a target for issuing licences in the interest of consumers, said Mr Baksaas. "3G is just a natural step in technology evolution, not a stark change," he said. In Mr Baksaas' view, 3G is likely to not only offer faster mobile broadband service, but also stimulate investment, create jobs and help develop the industry, as well as the economy. Telenor operates 3G services in many countries in Europe, with Ukraine now in the licence process. Telenor is now the world's sixth-largest operator in terms of subscribers, with 172 million customers in 12 countries. "We are now ready and eager to start our 3G investment plan, and we can easily bring our 3G experience to DTAC," said Mr Baksaas. Mr Baksaas declined to elaborate on the 3G investment figure, but said operators usually spent 10-15 percent of sales on network expansion per year. He said 3G had been proven in many countries to help get the telecom industry back on a growth path, particularly in data revenue, bringing co-development with other industries and contributing to economic development. Mr Brekke added that Digi, a Telenor mobile subsidiary in Malaysia, found that half of the country's Facebook users now accessed the social network through mobile phones. Asked if 3G was likely to continue to be a casualty of politics and encounter further delays, Mr Brekke said DTAC would continue its focus on 2G service in any case. But he said mobile users in Thailand would miss the opportunity to use higher-speed service. To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com. Copyright (c) 2009, Bangkok Post, Thailand Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. [ Back To TMCnet.com's Homepage ]