Thai regulator NBTC could be on shaky legal ground with its plan to control overseas OTT service providers by requiring them to set up local entities, legal experts have warned.
Lawyers stating that if the NBTC goes ahead with the plan, Thailand would be the first country to require OTT providers to set up local entities to make them easier to regulate.
A key challenge in regulating OTT services is that the internet is borderless and service providers can set up entities anywhere in the world, the experts added. The NBTC lacks the jurisdiction to force foreign players to set up local entities.
Such a move would also raise concerns over extra-territorial jurisdiction and international free trade arrangements.
The time-consuming requirements for establishing a local entity could also discourage foreign players from entering the market, the report adds.
The Thai government aims to level the playing field between operators and international OTT communications service providers. In April, the NBTC floated a plan to require OTT providers that utilize existing mobile networks to secure an operating license and pay internet bandwidth fees or value-added taxes to operate in the country.