The Commerce Ministry has found evidence that mobile operator Total Access Communications (DTAC) may be in breach of foreign ownership rules, according to local newspaper The Nation.
Yanyong Phuangrach, permanent secretary of the Commerce Ministry, was…
The Commerce Ministry has found evidence that mobile operator Total Access Communications (DTAC) may be in breach of foreign ownership rules, according to local newspaper The Nation.
Yanyong Phuangrach, permanent secretary of the Commerce Ministry, was quoted saying that the findings would now be passed on to the police for further investigation to determine whether some local shareholders have acted as nominees for foreign entities.
In mid-June, Thai cellco True Move filed a complaint with the Crime Suppression Division against rival DTAC for allegedly breaching investment laws in the country, whereby foreign entities cannot hold more than 49% of Thai telcos when their assets concern national security.
True argues that DTAC is “a foreign by law since its shareholding structure comprises only 28.65% Thai ownership and the remaining 71.35%is owned by foreigners.”
True claims, citing Telenor’s annual report, that the Norwegian telco owns up to 65.5% of DTAC and not 49% as claimed by DTAC.
But in an email to TelecomFinance today, Telenor said: “Telenor Group maintains its consistent position that its shareholding in dtac is in compliance with existing Thai laws, regulations and practices. Telenor Group has deep respect for any investigations conducted by an officially appointed authority of Thailand. We have strong belief in the Thai legal system, and we trust that the Thai authorities will conduct any investigations without interference and in a structured, transparent and fair manner to avoid negative consequences for the wider economy of the country, and for the best interest of the Thai telecom industry.
“Telenor Group also remains fully committed to the future development of the Thai telecommunications industry, and urges all parties to focus their efforts on creating an investment-friendly, competitive environment based on a level playing field.”
With the election of a new government, led by the Pheu Tai Party, it remains to be seen what their views will be on foreign investments in the country.
