Thai Telecoms Still Face Risks If 3G Auction Gets Ok

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3G AUCTION

Telecoms still face risks if auction gets OK

By Usanee Mongkolporn,

Sirivish Toomgum

The Nation

Risks remain concerning the 3G licence auction even if the Supreme Administrative Court permits the bidding in a landmark ruling today.

BANGKOK: -- The National Telecommunications Commission's board of directors yesterday convened a discussion and came up with two options, a source from the regulatory body said. If the court upholds the injunction against the auction, the NTC will cancel it and focus on developing regulations unrelated to the 2.1-gigahertz spectrum for third-generation wireless broadband. It will also refund the licence deposit of Bt1.28 billion paid by each of the three bidders.

If the NTC is allowed to go ahead with the auction, it will quickly consult with the government on how to proceed and how to shield TOT and CAT Telecom from financial impacts.

All bidders must also be bound by an additional clause: the regulations are subject to future changes by the planned National Broadcasting Telecommunications Commission (NBTC).

"This will create a risk [to the bid winners]. But without that clause, more lawsuits [on the NTC's authority to grant the licences] would follow, especially when the government is quickening the pace to set up the NBTC," the source said.

The authority issue could gain weight as three NTC commissioners end their six-year terms at the end of this month. Though the four remaining commissioners are allowed to perform duties under the Frequency Allocation Act BE2543, this may spark more criticism.

The NTC has most recently said the auction will take place this Saturday with the court's permission.

Prime Minister Abhisit Vejjajiva yesterday reiterated that his government wanted to see 3G services available in Thailand as soon as possible to benefit the public. He said it was very likely the Supreme Administrative Court would seek the Constitutional Court's interpretation on the NTC's authority. The government itself needed to wait for the court's ruling.

Abhisit said that while waiting, the Information and Communication Technology Ministry would lay down frameworks that would allow the shared use of networks in the future so as to minimise people's costs.

According to the Supreme Administrative Court on Monday, the ruling could involve CAT Telecom's case against the NTC, not just the bidding injunction, to end this legal fiasco once and for all.

While the court is to rule today on CAT Telecom's plea for an injunction against the auction, Parliament will concurrently start its deliberation of the revised Frequency Allocation Act, to pave the way for the establishment of the NBTC. After impromptu questions from MPs, a joint Senate-House committee will be set up to work further on the bill, after the Senate's proposals for revision.

Many related groups are reportedly enlisting names of qualified people to become NBTC commissioners. Some senators, whose terms will expire in February, are also interested in running as NBTC candidates.

Like many industrialists and telecom scholars, Thana Thienachariya, head of corporate affairs and strategy of Total Access Communication (DTAC), said he was not convinced the NBTC could get off the ground after only two or three years. Even if the law were passed this year, the NBTC selection process would take time. Then, commissioners needed to formulate the frequency-allocation master plan and the licence-auction plan. The commissioners, who would come from various fields, would also take time understanding the complicated world of the telecom industry.

Like what happened with the NTC selection process, the NBTC establishment process could be slowed by legal challenges, he said.

Thana also questioned the possibility of the government's plans to promote the conversion of telecom concessions, which will allow existing concession holders to provide 3G service commercially on their existing spectra. He supports all government plans for industry reform, but the issue lies with how to materialise the plans.

DTAC has been waiting for two years for the private-state panel founded under Section 22 of the Public-Private Joint Venture Act to permit it to launch 3G service commercially on its 850-megahertz spectrum. It has already launched such service on the non-commercial trial basis permitted by its concession owner CAT.

"I want to see the execution of the plans," Thana said.

As TOT, CAT Telecom and the NTC are involved in an overlapping system of granting licenses, he sees the need to improve the two state enterprises financially and prevent political interference.

Thana acknowledged that if the 3G auction is not launched soon, DTAC will be hit, as its concession will end in 2018. The concession terms of TrueMove and Advanced Info Service will end in 2013 and 2015, respectively.

-- The Nation 2010-09-23

[chantorn]

I have no problem using my 2G phone. Will price goes up when 3G arrives? Do I have to invest in a new phone?

[SomTumTiger]

I have had 3g for over a year, using True - 600 baht per month unlimited data plan - works great. Don't give a fig if its "Delayed" or not lol.

[gotlost]

I have been on AIS 3G for over a year.

[Phuket Stan]

Posted A minute ago

Supreme Administrative Court rejects NTC's appeal against 3G injunction. /via TR @can_nw /via @tulsathit

The Supreme Administrative Court says although 3G auction is for public interest, it must be legitimate. /via @tulsathit

The Supreme Admin Court has given its verdict to halt 3G auction; citing although its for public interest, it must stand on legitimacy. /voa @TAN_network

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Thai Supreme Administrative Court Rejects NTC's Appeal Against 3G Injunction

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