Page 92 - SAMENA Trends - August 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

REGULATORY NEWS

Regulator Meeting Ends With OTT Accord

Telecom regulators in Asean have agreed said regulators from the 10 Asean countries said. According to Mr. Takorn, Singaporean
in principle on revenue collection from agreed on revenue collection from the OTT and Malaysian regulators indicated they
over-the-top (OTT) service providers operators, based on three principles raised could collect corporate income tax from
operating in the region, though the earlier at the meeting. First, the measures OTT operators, many of which have head
approaches will have to be figured out by must not negatively affect consumers of offices set up in those countries. “The
the countries themselves. The regulators OTT services. Second, OTT revenue must NBTC also needs to figure out a model
met in Bangkok at the 25th Asean be given to the state. Third, OTT businesses for revenue collection,” he said, refusing
Telecommunication Regulators’ Council should give their consent to the measures. to term the model as a taxation regime.
meeting, which ended on Thursday. OTT The regulators will need to consult on the Revenue collection could be based on
was one of the key topics of discussion issue with their governments and leaders, the volume of bandwidth usage by OTT
as the regulators sought ways to properly said Mr. Takorn, who chaired the meeting. operators through telecom infrastructure.
regulate operators, including taxation. OTT Any additional proposals or amendments “This issue needs to be raised with the
refers to digital applications or services to the meeting’s resolution by members NBTC board again,” Mr. Takorn said. After
that operate on internet networks. These must be filed within a month, then the the revenue collection approach is clearly
players include Facebook, YouTube, Line outcome of this year’s meeting will be defined, it will be forwarded to the cabinet
and Netflix. Takorn Tantasith, secretary- officially concluded. Each country needs for consideration, he said.
general of the National Broadcasting and to figure out the details on how to proceed
Telecommunications Commission (NBTC), with revenue collection itself, Mr. Takorn

5G Upgrade Requires Massive Outlay: NBTC

to transfer from 4G to 5G technology if the
government and the NBTC aims to have
5G be adopted completely within the given
time frame, Mr. Takorn said. “Operators
need to completely change their network
equipment,” he said. “Each operator may
need to invest at least 200-300 billion
baht, excluding expenses from spectrum
auctions and 5G service.” Yet Mr. Takorn
insisted 5G technology would be a boon for
the industrial sector, where manufacturers
can make use of the technology to
undergo production restructuring. He
said 5G network equipment is expected
to be ready by the middle of next year at
the earliest. “The change from 2G to 3G
was from analogue to digital, while the
change from 3G to 4G is seen as a top-
up. But the change from 4G to 5G is a
major transformation that requires a lot
Telecom operators may need to spend telecom industry for talks about steps to of investment,” said Mr. Takorn. “This is
200-300 billion baht each to change their make 5G technology available in Thailand a whole new world of communication and
network equipment for 5G technology, by late next year. The parties ranged from connectivity.” The NBTC needs to heed all
says the National Broadcasting and licensed telecom operators to internet the players in the industry to make sure
Telecommunications Commission (NBTC). providers, importers and producers of IT 5G technology can get off ground and
Takorn Tantasith, Secretary General of the devices. The operators pointed out they operators survive financially, he said.
NBTC, said he invited various players in the need to invest a huge amount of money

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