As technology and telecommunications continue to converge at blinding speed, other sectors are joining the party with equally breathtaking acceleration. An example is the automotive sector, wherein the automotive sector converges with the technology and telecom sectors. Anything from monitoring tire pressure, mileage usage (e.g. in pricing leases), to alerts on pending or anticipated malfunctions are now within the technological capabilities of the automotive sector. To achieve such a dizzying array of technical options, one constant is necessary, which is connectivity to communication networks.
However (and not necessarily intended at the time such laws were enacted), regulations in Thailand governing the telecom sector unexpectedly become applicable, to the chagrin of the automotive sector. A common reaction from automotive companies is concern at being characterized as a telecoms operator, and thus being regulated as a telecoms operator, which is sailing in uncharted waters to say the least. Nevertheless, if an automobile has the technical capacity to connect with a local mobile network, and the seller of such automobile offers such connectivity as a service, then the automotive company is considered as a telecoms operator under current Thai law.
As a result, a telecommunications license is required from the National Broadcasting & Telecommunications Commission (NBTC). This normally raises alarm bells with automotive companies out of concern that there are complex licensing and ongoing compliance obligations. However, there are options to be legally compliant and have minimal compliance obligations depending upon the type of license applied for by an auto maker.
In the context of current telecoms licensing in Thailand, the most straightforward option is to apply for what is akin to an MVNO type license, which can take between 45-60 business days to conclude with the regulator. Ongoing compliance is relatively straightforward compared to other available licensing options and does not require (in our opinion) extensive staffing for such ongoing compliance.
For more information, contact John P. Formichella at: [email protected].