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TrueMove | June 14, 2011 | Press Release
TRUEMOVE FILES A REPORT WITH THE CRIME SUPPRESSION DIVISION TO INITIATE PROCEEDINGS AGAINST DTAC, WHICH HAS A FOREIGN STATE ENTERPRISE AS A MAJOR SHAREHOLDER, FOR OPERATING A BUSINESS NOT IN ACCORDANCE WITH THE THAI LAW
Bangkok: June 14, 2011 – True Move Company Limited has filed a report with the Crime Suppression Division to initiate proceedings against Dtac, which has Telenor, a foreign state enterprise, as a major shareholder, for operating a telecommunications business not in accordance with the Thai law. The Company is urging the Crime Suppression Division to investigate the matter in order that the Criminal Court can finalize the interpretation of Dtac’s nationality. Evidence from “The report on foreign shareholding and foreign controlled in telecommunication business” by the Telecommunications Committee of the House of Representatives published on April 21, 2011 indicates that Total Access Communication Public Company Limited (Dtac) is a “foreign” entity by law since its shareholding structure comprises only 28.65% Thai ownership and the remaining 71.35% is owned by foreigners where shares are spread among individuals and various companies, all of which are nominees.
True Move Company Limited has delegated Ms. Suphasorn Honchaiya as its representative to file the report with the Crime Suppression Division to initiate proceedings against Total Access Communication Public Company Limited (Dtac) as well as against individuals and companies which facilitate “foreign-owned entities” namely Dtac, to operate a telecommunications business which is forbidden to foreign entities by circumventing Section 4 of the Foreign Business Act B.E. 2542. In reference to “The report on foreign shareholding and foreign controlled in telecommunication business” of the Telecommunications Committee of the House of Representatives published on April 21, 2011, the telecommunications business is related to infrastructure services for the public nationwide, and also involves the use of air waves which are a national asset and concern national security, and should be prevented from control by foreign entities who can hold shares not exceeding 49%.
Ms. Suphasorn Honchaiya, representing True Move Company Limited, said that the Company welcomes foreign investment but it must be genuine and transparent in terms of information disclosure. However, since Dtac has Telenor, a foreign state enterprise as a major shareholder, it is therefore necessary for Dtac to come out and openly declare its ownership structure in operating a telecommunications business in Thailand, instead of spreading its shares among nominee individuals and companies to conceal the company’s nationality while at the same time misleading the public in believing that Dtac is in fact a Thai company. According to “The report on foreign shareholding and foreign controlled in telecommunication business” of the Telecommunications Committee of the House of Representatives, it was reported that Dtac is a foreign-owned company. Therefore if Dtac, which has the foreign state enterprise Teleneor as a major shareholder, is allowed to operate or control telecommunications businesses in the country, regardless of whether directly or indirectly, this will not only affect national security due to air waves being valuable and limited national assets, but can also cause huge damages for Thailand.
Moreover, while Dtac has reported its foreign shareholding amount as only 49% to the Ministry of Commerce, the foreign state enterprise Telenor has reported to the Stock Exchanges in Norway and Singapore that it owns approximately 66.50% in Dtac. This is clearly against the Thai law because it is operating a telecommunications business which is forbidden to foreign entities due to national security reasons and the use of air waves which are valuable and limited national assets. All these facts are in accordance with “The report on foreign shareholding and foreign controlled in telecommunication business” of the Telecommunications Committee of the House of Representatives.
True Move Company Limited has therefore filed a report with the Crime Suppression Division to initiate proceedings against Dtac, which has the foreign state enterprise Telenor as a major shareholder, for operating a business against the Thai law and not in accordance with Section 4 of the Foreign Business Act B.E. 2542. The filing of the report also includes individuals and various companies which facilitate “foreign entities” to operate a telecommunications business which is forbidden to foreigners. True Move Company Limited is also pushing for a clear-cut interpretation regarding Dtac’s nationality. If there is a final interpretation by the Criminal Court, this would help clear up many issues in the telecommunications industry.
“The filing of a report with the Crime Suppression Division against Dtact as well as against related individuals and companies, is to ensure that everything is done in accordance with the law and also to prevent any facilitation and/or circumvention of the law which forbids foreign entities to operate businesses in the telecommunications industry in Thailand,” concluded Ms. Suphasorn.
True Move Company Limited has delegated Ms. Suphasorn Honchaiya as its representative to file the report with the Crime Suppression Division to initiate proceedings against Total Access Communication Public Company Limited (Dtac) as well as against individuals and companies which facilitate “foreign-owned entities” namely Dtac, to operate a telecommunications business which is forbidden to foreign entities by circumventing Section 4 of the Foreign Business Act B.E. 2542. In reference to “The report on foreign shareholding and foreign controlled in telecommunication business” of the Telecommunications Committee of the House of Representatives published on April 21, 2011, the telecommunications business is related to infrastructure services for the public nationwide, and also involves the use of air waves which are a national asset and concern national security, and should be prevented from control by foreign entities who can hold shares not exceeding 49%.
Ms. Suphasorn Honchaiya, representing True Move Company Limited, said that the Company welcomes foreign investment but it must be genuine and transparent in terms of information disclosure. However, since Dtac has Telenor, a foreign state enterprise as a major shareholder, it is therefore necessary for Dtac to come out and openly declare its ownership structure in operating a telecommunications business in Thailand, instead of spreading its shares among nominee individuals and companies to conceal the company’s nationality while at the same time misleading the public in believing that Dtac is in fact a Thai company. According to “The report on foreign shareholding and foreign controlled in telecommunication business” of the Telecommunications Committee of the House of Representatives, it was reported that Dtac is a foreign-owned company. Therefore if Dtac, which has the foreign state enterprise Teleneor as a major shareholder, is allowed to operate or control telecommunications businesses in the country, regardless of whether directly or indirectly, this will not only affect national security due to air waves being valuable and limited national assets, but can also cause huge damages for Thailand.
Moreover, while Dtac has reported its foreign shareholding amount as only 49% to the Ministry of Commerce, the foreign state enterprise Telenor has reported to the Stock Exchanges in Norway and Singapore that it owns approximately 66.50% in Dtac. This is clearly against the Thai law because it is operating a telecommunications business which is forbidden to foreign entities due to national security reasons and the use of air waves which are valuable and limited national assets. All these facts are in accordance with “The report on foreign shareholding and foreign controlled in telecommunication business” of the Telecommunications Committee of the House of Representatives.
True Move Company Limited has therefore filed a report with the Crime Suppression Division to initiate proceedings against Dtac, which has the foreign state enterprise Telenor as a major shareholder, for operating a business against the Thai law and not in accordance with Section 4 of the Foreign Business Act B.E. 2542. The filing of the report also includes individuals and various companies which facilitate “foreign entities” to operate a telecommunications business which is forbidden to foreigners. True Move Company Limited is also pushing for a clear-cut interpretation regarding Dtac’s nationality. If there is a final interpretation by the Criminal Court, this would help clear up many issues in the telecommunications industry.
“The filing of a report with the Crime Suppression Division against Dtact as well as against related individuals and companies, is to ensure that everything is done in accordance with the law and also to prevent any facilitation and/or circumvention of the law which forbids foreign entities to operate businesses in the telecommunications industry in Thailand,” concluded Ms. Suphasorn.
