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ISSUES IN THAILAND …AND HOW TO SOLVE THEM ยุคของการเปลี ยนแปลงในธุรกิจโทรคมนาคม งานวิศวกรรมแห่งชาติ 2560 PRESENTATED AT PRESENTATION BY ALLAN RASMUSSEN

MVNO issues in Thailand - and how to solve them

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Page 1: MVNO issues in Thailand - and how to solve them

ISSUES IN THAILAND

…AND HOW TOSOLVE THEM

ยคุของการเปลีย่นแปลงในธรุกจิโทรคมนาคมงานวศิวกรรมแห่งชาต ิ2560

PRESENTATED AT

PRESENTATION BYALLAN RASMUSSEN

Page 2: MVNO issues in Thailand - and how to solve them

THAILAND’S TELECOM MARKET – AN UNLEVEL PLAYING FIELDwww.yozzo.com

MOBILE OPERATORS PLAYING FIELD MVNO’S PLAYING FIELD

Without some form of regulatory measures and changes as described in this presentation, Thailand’s telecoms market will remain an unleveled playing field, where competition and innovation of mobile services, and thereby the digital economy, may not evolve as it should - or at all.

The government has provided the platform for private industries to participate and form the final stages of Thailand 4.0 – however the current regulation from NBTC - or lack off, has not been able to follow suit but only concentrated on the existing silos in the market instead of getting all the wheels to spin.

Luckily, most of the issues evolves around issues created by NBTC itself i.e. home made quick fix paragraphs, lack of action, or lack of knowhow by the time MVNO was introduced, which demands less effort to solve.

Page 3: MVNO issues in Thailand - and how to solve them

MVNO’S IN THAILAND – WHY IT FAILED

In 2009 five MVNO’s where given a license by the telecom regulator NBTC to operate as MVNO’s on the state enterprise telecom operator TOT

AS OF NOVEMBER 2017 ONLY 1 MVNO IS LEFT

i-Kool 3G (Loxley)

UNLEVEL PLAYING FIELD - UNRESOLVED

POOR PLANNING AND EXECUTION

LEGACY SYSTEMS AND RED-TAPE

INSUFFICIENT NETWORK CAPACITY AT LAUNCH

INSUFFICIENT MVNO EXPERIENCE AND QUALITY

POOR MVNO CONTRACTS AND REGULATION

www.yozzo.com

MVNO IN THAILAND HAVE FAILED BECAUSE OF THE FOLLOWING REASONS

Page 4: MVNO issues in Thailand - and how to solve them

THAILAND’S “SUPERBOARD” FAULTS THE REGULATOR NBTC FOR MVNO FAILUREwww.yozzo.com

In 2016, The Inspection and Evaluations Commission (also known as the “Superboard”) of the National Broadcasting and Telecommunications Commission (NBTC), failed the telecom regulator and concluded that:

…NBTC should issues regulations for mobile virtual operators to support more of them in

the Industry, which should benefit consumers.

Page 5: MVNO issues in Thailand - and how to solve them

WHAT HAS THE REGULATOR NBTC DONE ABOUT IT?www.yozzo.com

noth•ingPronoun not anything; no single thing.

Adjectivehaving no prospect of progress; of no value

Page 6: MVNO issues in Thailand - and how to solve them

BUT CONTINUES TO SELL MVNO LICENSES

51 COMPANIESHAVE OBTAINED A MVNO LICENSE IN THAILAND

ONLY 9 HAVE LAUNCHED – 5 ARE STILL ALIVE

www.yozzo.com

MVNO LICENSES ISSUED IN THAILAND

AS OF DECEMBER 2017

Page 7: MVNO issues in Thailand - and how to solve them

MVNOS, ARE AN INTEGRAL PART OF THE GLOBAL MOBILE LANDSCAPE

Over the past 18 years, MVNOs have helped stimulate competition in the mobile market, launching innovative tariffs and services and attracting niche consumer segments at a lower cost than mobile network operators (MNOs). In Europe virtually every cable and fixed-line operator has a mobility strategy, largely based on MVNO

• 1000+ INDEPENDENT MVNOS WORLDWIDE• MVNOS INCREASED 70% BETWEEN 2010 AND 2015• 72 COUNTRIES HAVE MVNOS IN OPERATION• MVNOS ACCOUNT FOR 14% OF THE TOTAL EU MARKET• EUROPE IS HOME TO: 595 MVNOS, APAC: 137, US: 111• 1 OUT OF 10 PEOPLE IN AUSTRALIA IS A MVNO CUSTOMER

TODAY, MVNOS HAVE REACHED 214 MILLION USERS WORLDWIDE, AND IS ESTIMATED TO GROW TO 300 MILLION USERS AND A $70 BILLION VALUE IN 2020

Ovum predicts that nearly 24% of all new subscriber connections over the next five years will come from MVNO subscribers. Although the current enterprise market represents less than 10% of these connections now, they expect it triple to 30%

By 2020, IDC predicts that 30% of the top 500 companies in Thailand will see the majority of their business depend on the ability to create digitally-enhanced products, services and experiences

Overall connection growth for mobile phone service around the world was about 4.5% end of 2015. MVNO connections are growing at about 18% per annum 4 times faster than the average rate for the mobile industry.

Source IDC Thailand

With a predicted compound annual growth rate (CAGR) of over 10% in the forecast period to year 2020, the Asia Pacific region is home to the world’s fastest growing MVNO sector, even more than the highly competitive MVNO markets of Europe and North America.

Grand View Research

www.yozzo.com

Page 8: MVNO issues in Thailand - and how to solve them

…AND HAVE DELIVERED

THE RATIONALE FOR THE INTRODUCTION OF MVNO, INCLUDE - BUT ARE NOT LIMITED TO:

Stimulate competition,

Efficient utilization of network resources,

Introduce new or better services aligned to lifestyle propositions currently unserved/underserved,

Promote investment opportunities for local and international businesses in the telecom market.

Consequently, MVNOs are intended to support innovation, bridge digital divide, and contribute to the growth in the ICT sector to

ensure the achievement of the broader industry and DIGITAL ECONOMY OBJECTIVES.

THE CLEAR INTERNATIONAL EVIDENCE IS THAT MVNOs HAVE DELIVERED:

More consumer choice

Innovative pricing plans

Innovative products and services

innovation in, and better customer service

www.yozzo.com

Page 9: MVNO issues in Thailand - and how to solve them

…meanwhile in Thailand

www.yozzo.com

Page 10: MVNO issues in Thailand - and how to solve them

THAILAND’S TELECOM ECOSYSTEM

MNO = MOBILE NETWORK OPERATOR MNO Is a Mobile Network Operator who owns its own network infrastructure and has licensed allocated spectrum.

In Thailand the MNO’s are: AIS, CAT Telecom, DTAC, TOT and TRUE

www.yozzo.com

Page 11: MVNO issues in Thailand - and how to solve them

MOBILE NETWORK OPERATORS OWN THE INFRASTRUCTUREwww.yozzo.com

Page 12: MVNO issues in Thailand - and how to solve them

AND LICENSE THE SPECTRUMwww.yozzo.com

Page 13: MVNO issues in Thailand - and how to solve them

FROM THE NATIONAL TELECOM REGULATOR (NBTC)

NBTC

www.yozzo.com

Page 14: MVNO issues in Thailand - and how to solve them

THE 900/1800/2100MHz SPECTRUM LICENSES STATES 10% OF THE CAPACITY MUST GO TO MVNO’S

MVNO

10%

www.yozzo.com

Page 15: MVNO issues in Thailand - and how to solve them

HOWEVER IN THAILAND ONLY CAT TELECOM AND TOT HOST MVNO’S

MVNO

STATE ENTERPRISE STATE ENTERPRISE

www.yozzo.com

Page 16: MVNO issues in Thailand - and how to solve them

HOW MVNO’S CONNECT: MVNO’S CAN CONNECT TO MNO’S DIRECTLY

MNO MVNO

MVNO

A MVNO does not own spectrum, instead it enters into an agreement with either a MNO or MVNA to obtain

access to airtime at wholesale rates, and then sets its own retail price and service. An MVNO may invest in

its own operational components or employ the services of a Mobile Virtual Network Enabler (MVNE)

MVNO = MOBILE VIRTUAL NETWORK OPERATOR

www.yozzo.com

Page 17: MVNO issues in Thailand - and how to solve them

MVNO’S CAN CONNECT TO MNO’S THROUGH A MVNA

MNO MVNA MVNO

MVNO

A MVNA is an entity, who buys mobile airtime in bulk from the MNO, and then

wholesale the airtime to MVNOs. The MVNOs retails the airtime to its end-users

MVNA = MOBILE VIRTUAL NETWORK AGGREGATOR

www.yozzo.com

Page 18: MVNO issues in Thailand - and how to solve them

MVNO’S CAN CONNECT TO MNO’S THROUGH A MVNE

MNO MVNE MVNO

MVNO

Provides infrastructure and services to both the MNO and MVNOs, which enables MVNOs to offer their services on the MNOs

network, while leaving the “telecom” enablement to the MVNE. The MVNE provides services, such as billing, business workflow,

product setup, service delivery, customer care, fraud management, reporting, sale platforms, device management, etc.

MVNE = MOBILE VIRTUAL NETWORK ENABLER

www.yozzo.com

Page 19: MVNO issues in Thailand - and how to solve them

MVNO’S CAN CONNECT TO MNO’S THROUGH A MVNE/MVNA

MNO MVNA/MVNE MVNO

MVNO

The MVNA/MVNE purchases airtime in bulk from the MNO, adds the operational telecom components on

top, and then wholesales the airtime and service as a full turnkey solution to MVNOs. The MVNA/MVNE

also offers additional value add to the MNVOs in terms of guidance during setup, launch and operation.

MVNA + MVNE = MOBILE VIRTUAL NETWORK AGGREGATOR + ENABLER

www.yozzo.com

Page 20: MVNO issues in Thailand - and how to solve them

PROBLEM #1 IN THAILAND

THE MNO TRIANGLE

www.yozzo.com

Page 21: MVNO issues in Thailand - and how to solve them

MYSTERIOUS CIRCUMSTANCES - THE BERMUDA TRIANGLE

Florida

Bermuda

Puerto Rico

North Atlantic Ocean

THE NORTH ATLANTIC OCEAN HAS ITS BERMUDA TRIANGLE Where ships and airplanes has mysteriously gone missing

www.yozzo.com

Page 22: MVNO issues in Thailand - and how to solve them

MYSTERIOUS CIRCUMSTANCES - THE MNO TRIANGLE IN THAILAND

LIKEWISE IN THAILAND WE HAVE THE MNO TRIANGLE Where MVNOs for mysteriously reasons haven’t been able to launch for 5 years

www.yozzo.com

Page 23: MVNO issues in Thailand - and how to solve them

DESPITE THE MVNO CRITERIA AND CAPACITY ON THE 2100MHz LICENSES

Prior to Thailand’s 2100MHz 3G auction in 2012, the NBTC released the following Criteria and Procedure for the Spectrum.

16.5.1 The Licensee shall provide telecommunications network service with the minimum capacity of 10 percent of its networks to the MVNO who is not the Connected Person in the Shareholding Structure with any licensee when receiving such service request

AIS 90% DTAC 90% TRUE 90%

NBTC Notification | http://www.parliament.go.th/ewtcommittee/ewt/tele/ewt_dl_link.php?nid=144&filename=index

www.yozzo.com

Page 24: MVNO issues in Thailand - and how to solve them

DESPITE THE MVNO CRITERIA AND CAPACITY ON THE 900MHz & 1800MHz LICENSES

As with the 2100MHz spectrum, the NBTC has also added a MVNO clause in the terms for the 900MHz and 1800MHz licenses (2015/2016)

(1) The Licensee shall comply with the Commission’s Notification Regarding Mobile Virtual Network Operator Service 2013. (2) The Licensee shall provide telecommunications network service at least 10 percent of its network’s capacity to MVNO(s) that is/are not the connected person(s) with any licensee under this Notification, upon receiving such service request.

AIS 90% True 90% True 90% AWN (AIS) 90%

900MHz 900MHz 1800MHz 1800MHz

PDF | NBTC 900MHz Criteria (English) | http://auction.nbtc.go.th/getattachment/HOME/900MHz_Criteria_Eng.pdf.aspxPDF | NBTC 1800MHz Criteria (English)| http://auction.nbtc.go.th/getattachment/HOME/1800MHz_Criteria_Eng.pdf.aspx

www.yozzo.com

Page 25: MVNO issues in Thailand - and how to solve them

No MVNO’s have been able to launch on AIS, DTAC or TRUE despite the license terms saying the operators of 900, 1800 and 2100MHz have to provide at least 10% capacity to MVNO’s

www.yozzo.com

Page 26: MVNO issues in Thailand - and how to solve them

THE MNO TRIANGLE SOLUTION

www.yozzo.com

Page 27: MVNO issues in Thailand - and how to solve them

THE MNO TRIANGLE SOLUTION

1. The NBTC should publish a clear policy statement requiring the telecom network operators to provision MVNOs on their network.

2. The NBTC should exercise its regulatory mandate to monitor the market and the negotiations to ensure that mobile network operators conduct

negotiations fairly and in good faith - and that the policy objectives of the mobile market are fulfilled.

3. The detailed terms and conditions of MVNO provisioning should first be left to the parties to negotiate on a purely commercial basis

4. It would be in the public interest for the NBTC to intervene, and assist the parties - or if necessary, settle and resolve in case a mobile network

operator is acting in bad faith, engaging in any form of anticompetitive conduct, or if, after a reasonable period (1 months) of in-good-faith

negotiations, a commercial agreement cannot be reached between the parties.

5. The NBTC should follow up on a monthly basis to see if there is a progress in on-boarding MVNOs, and take measures if not.

In addition, and as a last resort only, if no progress is made - a regulatory mechanism allowing the NBTC to intervene, to:

Ensure fair and reasonable terms for access

Safeguard fair and non-discriminatory competitive behavior

Bring parties to the negotiating table at the earliest opportunity

Introduce and safeguard the principle of in-good-faith commercial negotiations.

i.e., the mobile network operator shall enter into a wholesale agreement with the MVNO, within a period of 1 months from the date of issuing a Letter

of Intent (LoI) or Memorandum of Understanding (MoU) and submit a copy of the same to the NBTC (licensor).

NBTC would have the power to intervene in the agreement if deemed necessary by one of the parties.

The Regulations/Directives/Orders of NBTC in this regard would be binding on the telecom network operators and the MVNO.

www.yozzo.com

Page 28: MVNO issues in Thailand - and how to solve them

NO MVNO – NO LICENSE

NBTC is planning an auction for one 850Mhz and

three 1800MHz spectrum licenses in 2018. It would

suit the regulator well to live up to its reason to

exist, by facing the issue of un-used MVNO capacity

among the three existing spectrum license holders.

One suggestion would be to add to the auction

terms and conditions, that in order to participate in

the upcoming spectrum auction, an existing license

holder, who has not yet lived up to the terms and

conditions in its previous spectrum license

regarding MVNO capacity, would have to launch at

least one MVNO, on their networks in order to

participate in the spectrum auctions. The mobile

network operators should be given a maximum

period of 60 days to present an MVNO proposal.

www.yozzo.com

The NBTC has been very active in making sure that terms and conditions, such as minimum roll out

coverage, license payments, maximum retail pricing, etc. has been followed by the 900/1800/2100MHz

auction winners, while zero attention - nor consequences has been given regarding the MVNO capacity.

Page 29: MVNO issues in Thailand - and how to solve them

PROBLEM #2 IN THAILAND

NO FULL MVNO

www.yozzo.com

Page 30: MVNO issues in Thailand - and how to solve them

NO FULL MVNO IN THAILAND = NO CONTROL OF THEIR OWN BUSINESSwww.yozzo.com

Page 31: MVNO issues in Thailand - and how to solve them

TYPES OF MVNO’S AND OPERATING MODELS

NETWORKAPP.

& SERVICESCUSTOMER ACTIVATION

CUSTOMER BILLING

CUSTOMER SERVICE

MARKETINGSIM & VOUCHER MANAGEMENT

SALES & DISTRIBUTION

HANDSET MANAGEMENT

BRANDED RESELLER

SERVICE PROVIDER

ENHANCED MVNO

FULL MVNO

Functions carried out by MVNOMVNOFunctions Carried out by MNO

MVNOMVNO

MVNO

MVNO

MVNO

MVNO

MVNO

MVNO

MVNO

MVNO

MVNO

MVNO

MVNOMVNO

MNO

MNO

MNO

MNO

MNO

MNO

MNO

MNO

MNO

MVNO

MNO

MNO

MVNO

MVNO

MNO MNO

MVNOMVNO MVNO

MVNO

MVNO

MNO = Mobile Network Operator

MNO

MNO

MVNE MVNE MVNEMVNEMVNEMVNEMNO MVNEMVNE MVNE

Functions carried out by MVNEMVNE

MVNO = Mobile Virtual Network Operator MVNE = Mobile Virtual Network Enabler

MNO

MVNO types, e.g. branded reseller, thin, medium, or full MVNO’s, are defined by which of the operational components the MVNO manages, and which one the network operator – or MVNE manages.

www.yozzo.com

Page 32: MVNO issues in Thailand - and how to solve them

FULL MVNO = CONTROL OF OWN BUSINESS AND FLEXIBILITY TO PROVIDE INNOVATIVE SERVICES

A Full MVNO has complete control over its operation, data, SIMs, customers and services due to certain core network elements such as:

• GMSC (Gateway Mobile Switching Centre) • HLR (Home Location Register)• SMSC (Short Message Service Centre), • MMSC (Multimedia Messaging Service) • GGSN (Gateway GPRS Support Node)

Full MVNO’s can also have their own roaming and interconnect agreements with other MNOs.

HLR/HSS

SMSC

GMSC

VOICEMAIL

MMSC

GGSN

www.yozzo.com

Page 33: MVNO issues in Thailand - and how to solve them

MVNO POSITIONING

LOW HIGHPRICING

SER

VIC

E O

FFER

ING

”No frills” MVNO’s

MVNO’s based on convinience

TraditionalMobile Operators

MVNO’s based on value addition

INNOVATIVE

IoT/M2MMVNO’s

As a FULL MVNO the MVNO can have control over services they can offer in the market, and thereby the flexibility to innovate and compete on new service offerings in the market

www.yozzo.com

Page 34: MVNO issues in Thailand - and how to solve them

AS WELL AS TACKLING DIVERSE, URGENT AND SIMULTANEOUS DEMANDS ON A HOURLY BASIS

Travel & Leisure MVNO needs to urgently resolve customer billing disputes before start of Songkran holiday season tomorrow

Ethnic MVNO wants to launch mothers day promotions before competitor launches its promotions

OTT MVNO wants to launch zero rating service on videos from its own portfolio to compete in the market against HBO, Netflix

Bank MVNO wants to utilize bulk of sales-force tomorrow to visit its premium customers to make a one-day only offer for rate plan upgrades

1

2

4

6

Retail MVNO wants to provide extra bonus points in loyalty program to drive sales this weekend

Retail MVNO wants to access its user usage data) to better address the needs and wants of its own customers

35

MVNO

MVNO

MVNO

MVNO

MVNO

MVNO

www.yozzo.com

Page 35: MVNO issues in Thailand - and how to solve them

THAILAND vs. SINGAPORE 4 - 0

Let’s say Thailand wins 4-0 over Singapore in football, and the whole country is celebrating the victory on social media. The MVNOs also wants to join the celebrations by providing the customers with a 20% discount on all voice calls

EXAMPLE www.yozzo.com

Page 36: MVNO issues in Thailand - and how to solve them

IN THAILAND TODAY

WEEK 1 WEEK 3 MONTH ? MONTH ?

Fax your requestto the MNO

Present your case at a meeting with the MNO

Internal meeting at the MNO to approve or not

Wait for result

This is how it ”works” today in Thailand if MVNO’s want to introduce new promotions, service - or tackle issues

www.yozzo.com

Page 37: MVNO issues in Thailand - and how to solve them

…Meanwhile Thailand will have lost to another country in both football and innovation

www.yozzo.comEXAMPLE

Page 38: MVNO issues in Thailand - and how to solve them

NOT ALLOWING FULL MVNO KILLS INNOVATION AND CREATES AN UNLEVEL PLAYING FIELD

LOW HIGHPRICING

SER

VIC

E O

FFER

ING

TraditionalMobile Operators

INNOVATIVE

www.yozzo.com

The MVNOs will not be able to compete on neither services, pricing - or introducing new innovations to the market, thereby giving the traditional mobile network operators an unfair advantage, severely limiting innovation and competition in the market

Page 39: MVNO issues in Thailand - and how to solve them

THE SOLUTION

www.yozzo.com

• Allow Full MVNO’s (like in other markets), to level the playing field, foster innovation and competition for the benefit of the consumers

Page 40: MVNO issues in Thailand - and how to solve them

PROBLEM #3 IN THAILAND

DOUBLE / TRIPLE LICENSE FEE

www.yozzo.com

Page 41: MVNO issues in Thailand - and how to solve them

UNFAIR DOUBLE LICENSE FEE HURTING THE MVNO AND CONSUMERS

OPERATOR

MVNOLicense FeeTotal 1.5%

1.50% License Fee3.50% USO Fee

Total 5%

New Voice Call CostTHB 105

New VoiceCall Cost

THB 106,57

Voice Call Cost

THB 100

The operator pays NBTC 1.50% of revenue in license fee + 3.50% of annual revenue in USO fee - Total 5%

Example: The operator sells THB 100 worth of voice calling to the MVNO which is THB 100 + 5% fee = THB 105

The MVNO pays NBTC 1.5% of annual revenue in license fee.

Example: The MVNO sells the now THB 105 worth of voice calling to customers. THB 105 + 1.5% fee = THB 106,57

❶ ❷

TOTAL = 6.50% 2 x 1.5% License Fees (MNO+MVNO = 3%

1 x 3.5% USO Fee (MNO) = 3.5%

REGULATOR

Un-level playing field as the operator can sell directly to customers for just THB 105 vs. the MVNOs THB 106,57

MVNO

As the host operator and MVNO each have to pay the license fees of annual revenue, the same mobile signal (voice/sms/data) ends up having double the tax, when it ends up at the MVNO and its customers.

www.yozzo.com

In 2009 the NBTC introduced Mobile Virtual Network Operator (MNVO) license along with a license fee scheme up to 1.5% of yearly revenue.However, the setup of the license fees causes the burden to be pushed to the MVNOs and consumers, as the NBTC is charging double fees on one ”signal”.

+ += =

Page 42: MVNO issues in Thailand - and how to solve them

UNFAIR TRIPLE LICENSE FEE HURTING THE MVNO AND MVNA

OPERATOR MVNA MVNO

MVNALicense FeeTotal 1.5%

MVNOLicense FeeTotal 1.5%

1.5% License Fee3.5% USO Fee

Total 5%

New VoiceCall CostTHB 105

New VoiceCall Cost

THB 106,57

New Voice Call Cost

THB 108,17

Voice Call Cost

THB 100

As the MNO, MVNA and MVNO each have to pay the license fee, the same mobile signal (voice/sms/data) ends up having triple tax, when it arrives at the MVNOs and the consumers

The operator pays NBTC 1.5% of revenue in license fee + 3.5% of annual revenue in USO fee - Total 5%

Example: The operator sells THB 100 worth of voice calling to the MVNA i.e. THB 100 + 5% fee = THB 105

The MVNA pays NBTC 1.5% of annual revenue in license fee

Example: The MVNA resells the now THB 105 worth of voice calling to the MVNO. I.e. THB 1,05 + 1.5% fee = THB 106,57

The MVNO pays NBTC 1.5% of annual revenue in license fee

Example: The MVNO sells the now THB 106,57 worth of voice calling to customers. I.e. THB 106,57 + 1.5% fee = THB 108,17

❶ ❷ ❸

TOTAL = 8% 3 x 1.5% License Fees (MNO, MVNA, MVNO) = 4.5%

1 x 3.5% USO Fee (MNO) = 3.5%

The operator can sell directly to customers

for just THB 105 vs. the MVNOs THB 108,17

www.yozzo.com

In 2009 the NBTC introduced Mobile Virtual Network Operator (MNVO) license along with a license fee scheme up to 1.5% of yearly revenue.However, the setup of the license fees causes the burden to be pushed to the MVNA, the MVNO and consumers, as the NBTC is charging triple fees on one ”signal”.

+ + += = =

REGULATOR

Page 43: MVNO issues in Thailand - and how to solve them

MVNO’S MAKES ITS BUSINESS ON MARGINS

MVNO

VS.

www.yozzo.com

MVNO’s makes its business on the small margins between costs and sale price. They operate a lean and flexible setup where every satang counts.

The unfair double, and triple taxation changes the timeline significantly for the MVNO to reach financial breakeven – if ever - given that the current fee structure setup not only adds costs, but also provides the mobile operators with an unfair pricing advantage

Page 44: MVNO issues in Thailand - and how to solve them

THE SOLUTION

www.yozzo.com

Let the MNO and MVNO (MVNA) split the 1.5% license fee like we do with VAT

i.e. MNO 0.75% and MVNO 0.75% = 1.5%

Page 45: MVNO issues in Thailand - and how to solve them

PROBLEM #4 IN THAILAND

BUREAU-CRACY KILLING INNOVATION

www.yozzo.com

Page 46: MVNO issues in Thailand - and how to solve them

MVNO LICENSE APPLICATION IS IN-CORRECT AND NOT UP-TO-DATE

TERMS AND APPLICATION FOR MVNO IN THAILAND IS ABOUT 15-YEARS TO OLD

www.yozzo.com

The application seems to be a copy and paste from old applications and

various countries in early 2000’s

In mid-2017 the NBTC added a MVNA license to the market without request for consulting or public hearing, ending up using the MVNO

application for MVNA license as well.

Page 47: MVNO issues in Thailand - and how to solve them

LICENSE APPLICATION BUREAU-CRAZY

NBTC OFFICER HAS TO UNDERSTAND & APPROVEFILL-OUT & HAND-IN THE APPLICATION

NBTC has added their own little notice to the act regarding license approval. The NBTC officer can decline the application if he/she doesn't understand, either due to language, the service, network etc.

www.yozzo.com

Page 48: MVNO issues in Thailand - and how to solve them

LICENSE APPLICATION BUREAU-CRAZY

ONCE APPROVED, THE OFFICER HANDS THE APPLICATION TO NBTC’S

SECRETARY-GENERAL TO SIGN

BECAUSE THE OFFICER IS RESPONSIBLE

www.yozzo.com

Page 49: MVNO issues in Thailand - and how to solve them

LICENSE APPLICATION BUREAU-CRAZY

THE MVNO LICENSE IS GIVEN BASED ON THE APPROVED INFORMATION

I.e. The information given and approved is part of the license – License valid for 5-years

www.yozzo.com

Page 50: MVNO issues in Thailand - and how to solve them

LICENSE APPLICATION BUREAU-CRAZY

HOWEVER…

?

The NBTC officer will not uderstand new innovative service from the MVNO and decline it because he/she is responsible, and it does not fit the boxes. Therfore all MVNOs are the same

in Thailand - even MVNAs have to use the MVNO application form which makes no sense

www.yozzo.com

Page 51: MVNO issues in Thailand - and how to solve them

BUREAU-CRACY KILLS INNOVATION AND OPENS FOR CORRUPTION

The officer becomes a single gatekeeper, which opens for corruption

The setup opens a ”backdoorvirus” for further corruption.

Because…

The MVNO license is valid for 5-years and consist of theinformation provided in theapplication. That information ishowever outdated because it hasto fit the old standard andknowhow from the officer.

Once the MVNO launch in thereal world with technology andinterfaces according to updatedstandards the regulator can comeback at anytime and say theMVNO is not operating accodingto the license (informationprovided in the license) anddemand they stop operation – orsolve it with a brown envelope.

www.yozzo.com

Page 52: MVNO issues in Thailand - and how to solve them

GETTING A LICENSE WITHOUT AN AGREEMENT

Thailand is among few, if not the only country in the world, where you can get a MVNO license without some sort of agreement (MoU) with a mobile operator (or MVNA/MVNE)

www.yozzo.com

Page 53: MVNO issues in Thailand - and how to solve them

GETTING A LICENSE WITHOUT AN AGREEMENT – HOW?

MVNO LICENSE IS GIVEN BASED ON THE APPLICATION INFORMATION

FILL-OUT & HAND-IN THE APPLICATION

HOW?

www.yozzo.com

Page 54: MVNO issues in Thailand - and how to solve them

GETTING A LICENSE WITHOUT AN AGREEMENT – HOW?

Question: How does a MVNO without a host operator agreement fill out 9,10, 11, 12?

Answer: They fill in ALL operators as example and use a network diagram from the 90’s

Who would buy equipment BEFOREhaving an MNO agreement AND a license?

www.yozzo.com

Page 55: MVNO issues in Thailand - and how to solve them

THE SOLUTION

www.yozzo.com

• Update the license application to the present and amend it from time to time.• Drop the added clause that the officer has to understand, approve and be responsible.• There is no reason to provide a license prior to an agreement with a MNO/MVNA/MVNE.• Introduce a real MVNA license application = do not use the MVNO application it’s not the same.

BUT BETTER YET…• Drop the need for MVNA/MVNO application/license altogether in-line with other countries who no longer issues MVNO licenses.

Doing so would make sense, as most of the issues releated to MVNO in Thailand, as discussed in this presentation would need an update or be removed. We are aware that NBTC is very keen on licenses in order to collect fees, and we therefor suggest a solution, where NBTC could maintain a very simple MVNO and MVNA license scheme, purely for the sake of collecting its license fees.

Page 56: MVNO issues in Thailand - and how to solve them

Presentation by Yozzo Co.,Ltd. www.yozzo.com March 2016

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