The Ministry of Economy and the Ministry of Post and Telecommunications Are Seeking Solutions in the Mobile Phone Business Conflict

The Mirror, Vol. 13, No. 634 - Friday, 16.10.2009

"Mobile phone businesses in Cambodia, working under unclear regulations, seem to encounter unexpectedly a stormy and disorderly time. For the morning of 16 October 2009, the Minister of Post and Telecommunications plans to organize a special meeting with representatives of mobile phone companies to intervene in the existing conflict, but it is expected that proper results cannot be found from just one coordination meeting.

"Mobile phone service providers said that the circular of the Ministry of Economy and Finance, administered by Minister Keat Chhon, from 29 September 2009, says to require all mobile phone companies to pay taxes for all types of calls by their clients [calls-in and calls-out]. But it is said that tax officials do not join now to work on taxes, which must always be settled at the end of every year.

"Mobile phone service providers note that the circular of Mr. Keat Chhon seems to bring a new restriction for mobile phone companies, as calls within the same system, which at some companies cost zero cents, will have to change soon. The free calls within the Beeline and the Smart Mobile systems will no longer be allowed to continue, while the Ministry of Economy starts to collect taxes from these call by their clients.

"It is noted that the initiative for a clear set of taxes on call led to this intervention, requiring all mobile phone companies to limit all call to be cost charged, in order to eliminate dishonest competition at the market, for which the Beeline company had been accused by the Mobitel company.

"The Ministry of Economy and Finance and the Ministry of Post and Telecommunications agreed to issue a license for a data management center to control the data of telecommunication and of information technology services, based on Decree 135, dated 15 September 2008. Through the plan to create a center to control data of telecommunication and information technology services, the government, represented by the Ministry of Post and Telecommunication, will cooperate with the private data management center as stated in the cooperation deal.

"This center for the control of data of telecommunication and of information technology services will be responsible for:

1. Directly control all data of telecommunication and information technology services, and update them, based on the advance of technology in this sector;
2. Control and monitor all activities of the center;
3. Regularly report about the traffic and the figures of income, in order to facilitate the calculation of taxes, and the distribution of income between the state. and the telecommunication and information technology service providers and operators, who are partners;
4. Provide accurate data for income forecasts, to analyze the economic potential, and for development projects in telecommunication and information technology.
5. Broaden and control the inter-network connections, in order to ensure calls between different system to work smoothly to avoid traffic congestion between all operating networks;
6. Support small operators to operate through the opening of special networks outside of the system;
7. Disconnect illegal traffic exchanges, following the authorities' orders and the telecommunication regulations;
8. Regularly review the system at set times for all operating networks.

"Some mobile phone operators are not satisfied with this, because probably the Ministry of Post and Telecommunication lacks the capital and the technicians, and therefore will cooperate with private companies to control telecommunication and information technology services, leading to conflicts of interest among mobile phone companies. Actually, the state already has the a structure within Post and Telecommunications that can control telecommunication data, and it is not necessary to cooperate with a private data management center, a private company.

"Also the circular that restricts certain system call of the clients, according to mobile phone service providers, will create work for the private data management center and encourage this company to begin collecting call taxes. This might ease the tax collection of the Ministry of Economy, but it leads to conflicts of interest, as the state does not have the ability to work on this by itself, but offers this opportunity to a private company to easily take benefits.

"[The Minister for Post and Telecommunications] Mr. So Khun had tried to intervene to solve the conflicts between mobile phone companies which are competing with each other dishonestly, including the fact that some stopped to connect inter-system traffic, but it seemed to create problems between mobile phone businesspeople in Cambodia. These might be the result of uncertain laws and regulations for the operation of mobile phone businesses in Cambodia.

"There is one proper solution to end the conflicts among mobile phone operators, that is the suggestion to the government, especially to Prime Ministry Hun Sen, to cancel the license for a data management cente with full rights to control the telecommunication and the information technology data in Cambodia, and to encourage the state to administer this itself, because by doing so, at least some of the profits do not fall into the hands of a private company." Khmer Amatak, Vol.10, #661, 16.10.2009

Newspapers Appearing on the Newsstand:
Friday, 16 October 2009

Deum Ampil, Vol.3, #312, 16.10.2009

• Gold Sellers and Currency Exchangers Were Robed Again, Taking Away More Than US$50,000 [Phnom Penh]
• Cotton Will Have Markets Again after There Is Investment for Export to International Markets
• There Are Positive Signs of Recovering at Micro-Finance Institutions [Sthapana Limited, Amarith, and Prasak micro-credit-institutions claim that they are again giving out more loans]
• Cambodia Asked for Financial Support from the United Arab Emirates to Develop Some Projects [in infrastructure and agriculture - no information stated if these were requests for loans or for grants]

Kampuchea Thmey, Vol.8, #2073, 16.10.2009

• Cambodia Might Not Bring the Border Dispute to the ASEAN Summit [after the Thai Minister of Foreign Affairs sent an official response, to deny the intention to create a neutral unit in ASEAN to solve border disputes, to the Ministry of Foreign Affairs and International Cooperation of Cambodia - according to the spokesperson of the Ministry of Foreign Affairs, Mr. Koy Kuong]
• Three Chinese Men Were Arrested for Questioning after Assaulting and Injuring Two Police Seriously [Kampot]

Khmer Amatak, Vol.10, #661, 16.10.2009

• The Ministry of Economy and the Ministry of Post and Telecommunications Are Seeking Solutions in the Mobile Phone Business Conflict
• Russia Will Intensify Cultural Ties with Cambodia to Open a New Historical Page [by showing Russian films about the victory of Russia in World War II, from 20 to 24 October 2009, at the Russian Center of Science and Culture along the Norodom Boulevard in Phnom Penh; and Cambodia and Russia will cooperate in film production in 2010]

Khmer Machas Srok, Vol.3, #510, 16.10.2009

• Within the Last Four Months More Than 400 Trucks Loaded Wood from Ratanakiri to Carry to Yuon [Vietnam - according to a Ratanakiri official who reported it anonymously]

Koh Santepheap, Vol.42, #6780, 16.10.2009

• Houses [of 28 families] Constructed on a Pedestrian Area at the Roundabout of the Chroy Chongva Bridge Were Removed [and destroyed, to widen the road - Phnom Penh]
• [The head of the Directorate of Cinema and Cultural Diffusion of the Ministry of Culture and Fine Arts] Mr. Sin Chanchhaya [son of the well-known signer Sin Sisamut]: The Reason Why Khmer Films Cannot Progress, Is that Film Productions Are Made by Non-Professional People
• Because of Losing Riel 60,000 [approx. US$15], a Cruel Man Got Angry with His Wife and Hit Her to Death [he was arrested - Kratie]

Rasmei Kampuchea, Vol.17, #5022, 16.10.2009

• [Sam Rainsy Party Parliamentarian] Mu Sochua Decided to End the [defamation] Case against the Prime Minister [saying that she will not appeal to the Supreme Court]
• Queensland Police [of Australia] Donates [five] Speed Checking Devices and [thirty] Alcohol Checking Devices to the Cambodian Police

Sereypheap Thmey, Vol.17, #1809, 16-18.10.2009

• The Opposition Parties and a Civil Society Organization [the Cambodian Human Rights and Development Association - ADHOC] Said that if a New Demonstration Law [limiting the number of people to less than 200 to assemble at a public place with permission from the authorities, to be applied for at least 12 hours before] Is Not Corrected, It Would Be Just a Tool to Cheat about the Implementation of Democracy in Cambodia

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