Thailand’s telecommunications framework is unique in balancing respect for the country’s sovereignty with openness to the global market. Although foreign ownership of infrastructure-based operators is limited, there is a helpful regulatory process for international carriers to operate legally through Type I licenses. These licenses, issued by the National Broadcasting and Telecommunications Commission (NBTC), form the foundation for what are often called partner-market arrangements.
This article explores why foreign carriers pursue Type I licenses, the connectivity needs in Thailand that make licensing essential, and how these structures are practically used to support enterprise customers and international roaming.
To clarify, this article differs from our earlier analysis of domestic retail Mobile Virtual Network Operators (MVNOs) under the NBTC’s Type 1 licensing regime (see https://fosrlaw.com/2025/thailand-mvno-type-1-license-challenges/). While the MVNO article focused on Thai-registered operators aiming to compete directly in the consumer mobile market, this piece emphasizes a different category of Type 1 licensees: foreign telecommunications companies operating in Thailand through partner-market arrangements. These arrangements generally support enterprise services, international roaming, or wholesale connectivity, rather than domestic consumer-facing mobile services.
By clarifying this distinction at the outset, readers can better understand that Thailand’s Type 1 licensing framework encompasses two different realities—one for local retail MVNOs, which has struggled to take hold, and another for foreign carriers using Type 1 authorization to underpin cross-border and enterprise services.
Thailand’s Licensing Framework
The Telecommunications Business Act B.E. 2544 (2001) (“TBA”) categorizes licenses into three principal groups:
– Type I – service providers lacking their own network infrastructure.
– Type II – niche or limited operators, encompassing private networks.
– Type III – operators with infrastructure that serve the general public.
(see: https://fosrlaw.com/2021/thailands-telecommunications-business-act/)
Foreign equity participation is restricted to no more than 49% for licensees of Type II and Type III, to guarantee Thai oversight of core network operations. Conversely, Type I licenses permit up to 100% foreign ownership via a Thai-incorporated entity, provided that the licensee also acquires a Foreign Business License under the Foreign Business Act.
Why Foreign Carriers Require Type I Licenses
Foreign carriers generally pursue Type I licenses because Thai law requires that all telecommunications services provided to customers in Thailand must be licensed. This applies even if a foreign operator resells capacity or relies entirely on a Thai Type III carrier’s infrastructure. Licensing is typically needed in two main scenarios: 1. Enterprise Services – Global operators offering managed networks, VPNs, cloud access, or leased circuits to Thai clients must hold a Type I license to operate legally in Thailand and connect local services with their global offerings. 2. Roaming Services – For international roaming, while the Thai network handles the radio access, the foreign operator still provides service to its users in Thailand. A Type I license ensures compliance with NBTC regulations and gives a legal foundation for reciprocal roaming agreements. In both cases, this license authorizes the foreign operator to market, contract, and deliver services in Thailand legally, without breaching foreign ownership laws for network operators.
The Partner-Market Model
Partner-market arrangements operate through contractual cooperation between a Thai licensee and a foreign Type I licensee. Common structures include:
– Capacity Leasing and Resale – A Thai operator supplies domestic or international circuits, which the foreign operator resells to enterprise clients.
– Roaming Agreements – Reciprocal arrangements that extend service for international subscribers.
– Enterprise Account Servicing – The foreign carrier manages global accounts, while the Thai partner ensures compliance with local regulatory obligations.
NBTC license conditions prohibit nominee arrangements or de facto control by unlicensed parties. Therefore, the foreign carrier must operate through transparent commercial agreements, maintaining network ownership and control under the Thai licensee.
Enterprise Connectivity in Practice
In practice, enterprise demand mainly drives Type I partner-market structures. Multinational companies with offices in Thailand often require integration into global wide-area networks or direct access to international cloud platforms. By holding a Type I license, the foreign carrier can provide a seamless contractual relationship to its client while sourcing underlying capacity from a licensed Thai operator. This model shows how Thailand’s framework enables cross-border connectivity while complying with national rules on network ownership.
Roaming and International Integration
Roaming highlights the importance of the Type I license. Foreign carriers offer mobile services to their subscribers visiting Thailand through agreements with Thai operators. The Type I license guarantees these agreements are recognized by the NBTC, oversees reciprocal obligations, and enables lawful billing and service delivery. The outcome is a win-win: foreign carriers broaden their international coverage, while Thai operators earn wholesale revenues and expand their outbound roaming services.
Compliance Considerations
Foreign carriers operating under Type I licenses must carefully follow:
– Restrictions on license transfers and nominee arrangements.
– Universal service obligations and interconnection rules applicable to their Thai partners.
– NBTC monitoring of wholesale agreements to ensure regulatory transparency.
The NBTC is especially vigilant about indirect control structures. Agreements should, therefore, establish a clear operational separation: the Thai entity remains responsible for infrastructure and compliance, while the foreign Type I entity handles resale and service expansion.
Strategic Implications
Partner-market arrangements foster a positive and cooperative environment where everyone benefits. They help align Thailand’s policy objectives with the needs of a connected, global telecommunications industry. For foreign operators, these arrangements offer a friendly and accessible way to enter the Thai market, ensuring smooth service for international customers. Thai licensees also value these partnerships because they open opportunities to monetize extra capacity and collaborate with carriers worldwide. At the same time, for the NBTC, these arrangements enable effective oversight while maintaining control over Thailand’s vital telecommunications infrastructure.
Conclusion
The use of Type I licenses by foreign carriers in Thailand highlights the country’s flexible and strong regulatory system. Although foreign ownership rules remain quite strict, the partner-market model offers an accessible way for international companies to enter the Thai market without violating local control of networks. In practice, these arrangements have become vital for supporting business connectivity and providing seamless international roaming services to users. The NBTC’s ongoing oversight helps ensure that this model remains fair and effective, while also helping Thailand stay connected with the world in telecommunications.
About the Authors
Naytiwut Jamallsawat is a partner at Formichella & Sritawat, where he leads the firm’s Corporate and Regulatory Practice. He advises some of the world’s top telecommunications and media companies operating in Thailand. His experience includes regulatory licensing, market access, and telecom compliance strategies—covering the full range of NBTC regulatory licenses such as Type I, II, and III. Naytiwut has managed complex telecom joint ventures between Thai and international companies, guiding them through licensing approvals, shareholding structures, and comprehensive documentation, including SPA, JVA, and shareholder agreements. His regulatory expertise is complemented by a strong commercial sense, helping clients succeed in highly regulated telecom sectors.
John Formichella is the founding partner of Formichella & Sritawat and leads the firm’s Technology, Media, and Telecommunications (TMT) practice. With over 27 years of experience, including serving as general counsel for a NASDAQ-listed telecom company, John has provided advice on telecom projects across Southeast Asia. He is especially known for helping clients with large infrastructure projects, market access strategies abroad, and spectrum and licensing issues in Thailand. Earlier in his career, John advised on the telecommunications chapter of the proposed U.S.-Thailand Free Trade Agreement. He remains a trusted advisor to telecom investors and operators entering or expanding in Thailand’s regulated TMT sector.
Onnicha Khongthon is a Senior Associate at Formichella & Sritawat. She specializes in telecommunications, broadcasting, and satellite regulation, working directly with the NBTC on behalf of clients. Onnicha’s experience includes preparing and managing telecom license applications, responding to compliance inquiries from regulators, and advising on foreign investment restrictions that apply to telecom operators. She regularly helps with implementing licensing strategies that align with practical realities and NBTC expectations, including new digital platforms and service-based operators. Her practical regulatory knowledge assists clients in anticipating and managing legal risks in the Thai telecom sector.
The comments herein are for discussion and information purposes only and are not guaranteed to be up to date. Nothing herein should be or can be relied on as legal advice.
For any questions, you may contact Formichella & Sritawat at [email protected]
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