Thailand’s telecoms regulator ruled Line Mobile does not need to apply for an MVNO licence following a meeting with company executives and examining its business model, Bangkok Post (BP) reported.

Line Mobile is an independent unit owned by a subsidiary of dtac, the country’s third-largest mobile operator, and runs voice and data services on dtac’s mobile network. Line Mobile pays a royalty fee to Line Thailand.

The National Broadcasting and Telecommunications Commission (NBTC) set up a panel in September to study whether the controversial Line Mobile service is operating legally after the country’s two largest mobile players, AIS and True Move, wrote to the NBTC urging it to make a ruling on whether Line Mobile can operate the service without a licence.

Line Mobile told the regulator the government will continue to receive licensing payments since all its revenue will be transferred to dtac’s subsidiary, which holds a mobile licence from the NBTC, BP said.

Lars-Ake Norling, head of dtac, previously defended Line Mobile from rivals’ criticism insisting the service is merely a marketing scheme and is subject to all relevant government fees as its mainstream services. He said the service operates as a unit of dtac, so it doesn’t require an MVNO licence.

However, in its decision the NBTC said Line Mobile needs to amend its online registration system to follow existing regulations, which require registration to be conducted at a service point with an ID card, BP reported. It also ordered the company to improve awareness of the service’s features among its customers.