11 April 2025
Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has officially revoked the telecom license of mobile virtual network operator (MVNO) K4 Communication Company following the arrest of its directors on allegations of fraud.
K4 Communication previously provided mobile services by leasing network capacity from the state-owned National Telecom and operated a top-up kiosk business for its customers. However, the situation escalated when reports emerged about the company's illicit activities.
According to local media, K4 Communication had created a group on the Line chat app, inviting individuals to invest THB 50,000 in its top-up kiosks with promises of high returns. This scheme led to 74 complaints filed with the police by victims claiming they never received the kiosks as promised, accusing K4 of running a Ponzi scheme.
NBTC acting secretary-general Trairat Viriyasirikul confirmed that the Central Investigation Bureau arrested K4's directors earlier this month, and assets worth over THB 50 million from both K4 and its directors were seized. Investigating authorities have revealed that victims are seeking compensation for total damages estimated at THB 29 million.
While the NBTC has stated it lacks jurisdiction over the top-up kiosk operations, the seizure of K4’s assets due to suspected fraud was deemed sufficient grounds to terminate the company's MVNO license. In addition, the regulator enforced the decision that National Telecom will take over K4's 46,000 SIM card users as part of the transition.
This incident highlights the increasing scrutiny on the telecommunications sector in Thailand and underscores the importance of regulatory oversight in preventing fraudulent activities within the industry.
