Big Three Set To Do Battle In 3G Auction

[webfact]

Big three set to do battle in 3G auction

By USANEE MONGKOLPORN

THE NATION

3G wireless broadband service in Thailand looks set to be dominated by incumbent telecom operators, which already have a firm foothold in the market.

Subsidiaries of Advanced Info Service (AIS), Total Access Communications (DTAC) and True Corp have emerged as the only three qualified applicants for 3G-2.1GHz spectrum licences at an auction due to be held in Hua Hin on Sept 20.

The three are expected to compete fiercely, as the National Telecom-munications Commission (NTC) will put only two of the three available 3G licences up for auction.

Four companies submitted applications yesterday, but one was found to be unqualified. AIS subsidiary Advanced Wireless Network (AWN) submitted its application soon after 9am, followed by DTAC subsidiary DTAC Internet Service and True subsidiary Real Move.

WIN WIN NGV DISQUALIFIED

Suphan Buri-based natural-gas-for-vehicles car importer Win Win NGV submitted an application mid-afternoon, but it was later disqualified as it did not lodge the auction guarantee deposit of Bt1.28 billion at the same time. It submitted only the application fee of Bt500,000.

The NTC required all applicants to place both fees on yesterday's application submission date.

AWN lodged the auction guarantee with a Bangkok Bank cheque, while DTAC Internet Service placed its guarantee in the form of an HSBC cheque and Real Move used a Siam Commercial Bank cheque.

The NTC will take 15 days to conduct the pre-qualification process, before announcing the qualified bidders' names on September 14. If all three are deemed to have qualified, the watchdog will auction two of the three 3G licences, in accordance with its auction rules, known as N-1.

Its rules also provide for it to auction all three licences if there are at least four qualifying bidders, one licence if there are two bidders and no auction if there is just one bidder.

The NTC has hired Chulalong-korn University, the University of the Thai Chamber of Commerce, Tham-masat University and the National Institute of Development Admin-istration to examine the documents during the pre-qualification process.

The starting bid price for each licence is Bt12.8 billion.

The NTC will conduct a mock auction for the press at its building on September 7, and will organise a press tour for September 17-18 at the location in Hua Hin where the auction will take place. But it has yet to disclose details of the auction venue.

Assuming all three prospective bidders qualify, the regulator will call an auction for the third 3G licence within 90 days of the first auction. The starting price at the next auction will be based on the lowest winning price at the first auction.

While NTC member Natee Sukonrat yesterday expressed confidence foreign telecom operators would join the bidding for the third licence, a telecom analyst believes none will take part. He reasoned that if they had wanted to bid for a 3G licence, they would have submitted their applications yesterday.

AIS's share price closed yesterday at Bt93, down 0.5 per cent, while that of DTAC closed at Bt48.75, down 1.5 per cent. The share price of True Corp ended at Bt7.30, 2.7 per cent lower than Friday's close.

AIS has more than 30 million mobile-phone subscribers, DTAC over 20 million and True Move about 16 million.

WIN WIN LINK TO SENATOR

Abortive bidder Win Win NGV has Pattamawadee Pothasuthon as managing director. She is the daughter of Prasit Pothasuthon, chairman of the Senate's science, technology, communications and telecom committee.

Her brother Yuthana Pothasu-thon, who is the company's adviser, said he was unaware that companies had to place a deposit of Bt1.28 billion when submitting their application. He thought they could do so within three days of submission.

He said Win Win NGV had a strong desire to bid for a licence, and denied that its attempt to take part in the auction had anything to do with his father's recent charge against NTC member Natee for alleged negligence of duty.

Last month, Prasit asked the National Anti-Corruption Com-mission to investigate Natee, head of the NTC's 3G-licence development panel, for setting an unrealistically low price for 3G spectrum licences, citing that it would |damage the national interest and favour private telecom operators.Some 20 companies picked up application forms to take part in the auction. The other 16 were AIS, DTAC, TrueMove, Samart i-Mobile, Jasmine International, Milcom Systems, Loxley, Sranrat, Samut Prakarn Media, Acumen, James and Partners Law Offices, Khaolak Bamboo Orchid, Apichaichatchaval Holding, Jaya Soft Vision, 365 Communication, and Rungake-raya.

Jasmine's share price closed at Bt1.43 yesterday, up 64 per cent from the close of Bt0.87 on August 2, the first day that companies could pick up the forms. Samart i-Mobile closed at Bt2.22, up 17 per cent from the close of Bt1.89 on August 2, while Loxley closed at Bt2.92, up 40 per cent from Bt2.08 on August 2.

-- The Nation 2010-08-31

[gotlost]

Gee...What happened to TOT/TTT/3b? Forgot CAT?

Edited August 31, 2010 by gotlost

[Phuket Stan]

Gee...What happened to TOT/TTT/3b? Forgot CAT?

No...they will find some spurious loophole in the bidding and tie it up in the courts for another decade

[madmitch]

Am I missing something?

There are three bidders and there are three licences in all. It's unlikely any other bidder will join even for a subsequent auction (would any foreign company really want to get involved in this farce?)so why not cut the crap and give the three of them a licence each and get on with it; obviously on the payment of an amount to be agreed.

Too simple?