Telematics, Thailand, and Telecommunications

john@fosrlaw.com

August 2018

By John P. Formichella

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 telecommunications and technology sectors. Anything from monitoring tire pressure, mileage usage (for example in pricing leases), to alerts on pending or anticipated malfunctions are now within technological capabilities for the auto 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 telecommunications sector unexpectedly become applicable to the chagrin of the automotive sector. A common reaction from automotive companies is concern to being characterized as a telecommunications operator, and thus being regulated as telecom operator, which is essentially sailing in uncharted waters to say the least. 

Nevertheless, under current law 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, the seller (the automotive company) is considered a telecommunications operator under the laws of Thailand.

As a result, a telecommunications license is required from the National Broadcasting and Telecommunications Commission. This normally raises alarm bells with automotive companies out of concern 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 telecommunications licensing in 

Thailand the most straightforward option is to apply for what is akin to a 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 you may contact John P. Formichella at john@fosrlaw.com

The content herein is for general information purposes only and shall not be construed as, or interpreted as legal advice in any context whatsoever.

E-Signatures, Thailand

john@fosrlaw.com

August 2018

by John P. Formichella

The eCommerce market in Southeast Asia is one of the fastest-growing and most promising with its projection to grow to $11 billion in 2025.  According to the Electronic Transactions Development Agency, in 2017 the total eCommerce market in Thailand was estimated at $2 billion.  The total Thai eCommerce revenue is expected to reach $3.5 billion in 2018.  The driving factors arise from increased Internet and mobile phone use as well as improved logistics and e-payment systems. 

Source: www.export.gov

With rapid growth of eCommerce transactions, closing of transactions via the traditional exchange of signatures opens the door to various issues. For banks and payment service providers there is always the problem of charge-backs. Of course verification methods are on the increase but the starting point in closing a digital transaction is an e-signature.

Under Thai law, an “e-signature” is a letter, character, number, sound, or any other symbol created in electronic form which can be used in conjunction with electronic data for establishing the relationship between a person and such electronic data.”

The law clearly expresses that the enforceable and binding effect of electronic data cannot be denied or rejected because such data is produced electronically or is in an electronic form. An e-signature is automatically considered reliable/trustworthy if such e-signature (i) is created and linked exclusively to its owner, (ii) is created under the exclusive control of the signatory without other persons involved; (iii) any change to such e-signature must be detectable and identifiable; and (iv) any amendment to an executed document using such e-signature can be detected and identified.  

Practically speaking, an e-signature using Public Key Infrastructure (PKI) technology is currently recognized under Thai law as secure and reliable technology. Thus technologies using PKI for e-signatures is legally binding and enforceable.

For more information please contact me at john@fosrlaw.com

The content of this article is for general information purposes only and is not considered as legal advice.

© John P. Formichella