Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has reportedly revoked the telecoms licence of mobile virtual network operator (MVNO) K4 Communication Company after its directors were arrested for alleged fraud.
K4 Communication – which offered mobile services by leasing network capacity from state-owned National Telecom – also operated a top-up kiosk business providing services to its customers.
According to a report in the Bangkok Post on Monday, K4 set up a group on the Line chat app inviting people to invest THB50,000 (US$1,475) each in its top-up kiosks with the promise of a high return on investment. Since then, 74 people have filed complaints to the police, claiming they never received a kiosk as promised, and accused K4 of running a Ponzi scheme, the report said.
NBTC acting secretary-general Trairat Viriyasirikul told the Post that the Central Investigation Bureau arrested the company's directors earlier this month and seized assets of both K4 and its directors worth more than THB50 million.
The victims are claiming total damages estimated at THB29 million, the report said.
The NBTC said that while it has no jurisdiction over top-up kiosks, the seizure of K4’s assets for suspected fraud was sufficient grounds for the regulator to terminate K4’s MVNO licence.
The NBTC also ruled that National Telecom will have to take over K4’s 46,000 SIM card users, the report added.
