Oct. 9--Advanced Info Service (AIS) has expressed confidence that its foreign shareholding structure meets the terms of the 3G-licence auction planned by the National Telecommunications Commission.

The country's largest mobile operator added that delaying the 3G auction further would not necessarily help the two state telecom enterprises, TOT Plc and CAT Telecom, which rely heavily on revenue-sharing payments from private operators under the existing concession system.

AIS operates under a 25-year concession from TOT, which is scheduled to expire in 2015. The company says it has paid TOT about 100 billion baht in revenue sharing to date, and has transferred infrastructure assets worth 100 billion baht to the state enterprise.

The comment is a direct response to third-ranked operator True Move, which has injected nationalism into the debate over third-generation licences. Thai-owned True contends it is at a disadvantage to AIS and second-ranked DTAC, and that foreign-controlled companies could end up controlling national assets.

AIS is part of Shin Corp, majority owned by Temasek Holdings of Singapore, and DTAC is controlled by Telenor of Norway.

Ranongruk Suwunchwee, the Information and Communication Technology (ICT) minister, also wants the NTC to delay the auction, arguing TOT and CAT could be severely hurt financially and that foreign telecom operators could end up controlling the Thai telecom industry.

The NTC plans a second public hearing in late October on pre-qualifications of bidders, foreign shareholding structure, starting bid prices, the number of 3G operators and a contingency plan in case there are fewer than five bidders.

However, the regulator has reiterated that it is determined to call bids by the end of this year.

AIS chairman Somprasong Boonyachai said his company's foreign shareholding structure was in compliance with the draft 3G auction rules and the law.

"The accusation was based on True Move's own opinion and feeling," he said, adding that "it also has nothing to do with nationalism since we have never done anything wrong against the constitution."

But if the government rules AIS violated the existing law, the company will be ready to comply.

Mr Somprasong said AIS agreed to a second public hearing if it could help clarify all concerns and prevent any problems in the future.

"AIS actually has no need to hurry in the 3G auction," he said.