Complaint Filed Against NBTC for Neglect of Duty Regarding Enforcement of MVNA/MVNO Regulation

The complaint asserts that the NBTC’s “persistent and prolonged failure to enforce its own regulations designed to secure fair and non-discriminatory access for Mobile Virtual Network Aggregators (MVNA) and Operators (MVNOs)” has spanned over a decade. This “systemic inaction,” the company argues, has “significantly stifled competition in the Thai telecommunications sector, hindered business growth, and unjustly prejudiced companies attempting to operate or invest as MVNA and MVNOs.”

The complaint highlights the NBTC’s mandate as the primary regulatory body for telecommunications in Thailand, which includes promoting fair competition and ensuring efficient spectrum use.

To this end, the NBTC issued regulations in 2013 to facilitate the entry and operation of MVNA and MVNOs, acknowledging their potential to foster innovation, diversify services, and enhance consumer benefits. These regulations included “vital provisions for network access and interconnection,” deemed “crucial for creating a level playing field for MVNOs to secure access and wholesale agreements with the existing Mobile Network Operators (MNOs).”

However, despite these regulations being in place for over ten years, MVNO Services Co., Ltd. contends that “the NBTC has demonstrably failed to actively monitor, compel, or enforce compliance from the MNOs AIS and TRUE/DTAC.” This alleged “regulatory dereliction of duty” has created a detrimental environment where:

MVNO Licenses are Rendered Ineffective: Since 2013, over 65 entities granted MVNA/MVNO licenses by the NBTC have reportedly invested significant resources into business planning, technology, and setup, only to find themselves “unable to secure wholesale access agreements with the MNOs AIS and TRUE/DTAC.” This renders these licenses “effectively useless” and represents “a significant economic burden and lost opportunity for investment.”

Stifled Competition and Innovation: The absence of a genuinely competitive MVNO market has, according to the complaint, “prevented the introduction of new services, niche offerings, and pricing innovations crucial for a dynamic telecommunications landscape in Thailand.” This directly “contravenes the NBTC’s mandate to foster competition.”

Market Distortion: The “continued dominance of a few MNOs, unchecked by effective regulatory enforcement,” has led to “market distortions and a lack of genuine competition, which ultimately harms both businesses and consumers.”

Undermining of National Digital Economy Goals: A thriving MVNO sector is seen as “essential for fostering a robust and innovative digital economy.” The NBTC’s “prolonged inaction in ensuring MVNO access directly undermines national efforts to modernize and diversify Thailand’s telecommunications infrastructure and services.”

MVNO Services Co., Ltd. emphasizes that its complaint stems from the NBTC’s “profound failure to perform its duties in compliance with the law (its own regulations) and its persistent inaction in enforcing existing provisions.” This negligence, the company argues, has “directly caused significant adverse impacts on our and other business operations and investment prospects within the telecommunications sector.”

The complaint stresses that the NBTC’s role extends beyond merely issuing regulations to encompass their “effective implementation and enforcement.” Its “long-standing passive approach regarding MVNO access constitutes a clear case of mal-administration and a dereliction of its fundamental regulatory responsibilities.”

MVNO Services Co., Ltd. has respectfully requested that the Office of the Ombudsman “conducts a thorough and impartial investigation into the NBTC’s failure to enforce its regulations pertaining to MVNO access.” Specifically, the company urges the Ombudsman to:

Investigate the root causes behind the NBTC’s prolonged inaction and lack of effective enforcement regarding MVNO access.

Compel the NBTC to take immediate and concrete steps to enforce its existing MVNO access regulations, ensuring fair, transparent, and non-discriminatory wholesale agreements are genuinely available to licensed MVNOs.

Recommend remedial actions to address the systemic issues that have allowed this regulatory failure to persist for over a decade, including potential revisions to enforcement mechanisms or legislative frameworks if deemed necessary to ensure future compliance.

Monitor the NBTC’s compliance with any recommendations or orders issued by the Ombudsman to ensure a genuine and lasting resolution to this critical market issue.

MVNO Services Co., Ltd. believes this matter is “of significant public interest, as it impacts the competitiveness and development of a critical national infrastructure sector and affects businesses and consumers nationwide.” The company stands ready to provide any further information, documentation, or assistance required for the Ombudsman’s investigation, expressing its anticipation for prompt attention to this critical issue.

Attachments to the letter:

• NBTC Announcement on Virtual Network Mobile Phone Services
• Page 13 | NBTC Announcement on Criteria and Methods for Licensing | https://spectrumauction.nbtc.go.th/Download/Document/54.aspx
• Thai Post | October 21, 2022 | Specific Measures for NBTC, True, DTAC | https://www.thaipost.net/hi-light/246902/
• Post Today | NBTC Fails Call Rate Control | NBTC Dissects 4 Issues That NBTC Must Improve Both frequency management and mobile service charge regulation | April 22, 2016 | https://www.posttoday.com/biz/gov/427902
• Bangkok Post | National Telecom sees imminent end to capacity allotment | February 4, 2025 | https://www.bangkokpost.com/business/general/2953775/national-telecom-sees-imminent-end-to-capacity-allotment.