CAT threatens legal action against frequency bill

Yesterday representatives of CAT and TOT labour unions submitted a letter to Prime Minister Abhisit Vejjajiva demanding that the House of Representatives delete Section 84 (3) of the bill governing the formulation of the National Broadcasting and Telecommunications Commission (NBTC). The unions also asked Abhisit to have the Constitution Court rule on whether the clause is unconstitutional.

CAT and TOT, both wholly owned by the Finance Ministry, are against Section 84 (3) because they believe it would hurt them financially. The clause requires the two telecoms to transfer the remainder of their concession revenue, once costs are deducted, to NBTC after the frequency allocation law has been in effect for three years. The NBTC will then put the amount in the state coffers.

The joint Senate and House committee has sent a completely vetted Frequency Allocation Bill to be voted on. The bill is on the agenda for the House today and the Senate on Monday, but it remains to be seen whether it will be considered by the House.

According to the unions, the clause gives too much power to the NBTC, which means it is not in line with the current Constitution, which empowers the NBTC only to regulate markets and allocate telecommunication spectra.

The unions also believe that the clause contradicts Section 305 (1) of the Constitution, which stipulates that concessions set up before this charter was put into effect would continue until they expire.

They also regard the clause as unfair, as it does not require state broadcasters to transfer concessions to the NBTC. If CAT and TOT are financially hurt, this will affect their ability to continue investing in telecom services, they argue.