3G News & Developments

[lomatopo]

EXCLUSIVE INTERVIEW

NBTC had 'legal obligation' to ensure fair 3G bid

The Nation October 26, 2012 1:00 am

Since the auction of third-generation (3G) telecom operating licences last month, those involved in the bidding have faced heavy scrutiny from the National Anti-Corruption Commission (NACC), the Ombudsman's Office and the Department of Special Investigation (DSI).

Former NACC member Prof Methi Krongkaew gives The Nation his perspective on the auction.

Q : What is your view in terms of the legal aspects of this auction?

Though I have no information about the procedures and preparation for this auction, I have learned that foreign countries such as India carried out auctions that allowed all bidders to truly compete to secure licences. But in our country, the number of licences offered for auctioning was the same as the number of bidders, so everyone got what they wanted. It is difficult to judge if there has been collusion. I cannot tell until an investigation is carried out. According to Article 11 of the Price Collusion Act 1999, if state officials believe bidders have colluded on pricing, they could be held responsible for failing to stop it.

http://www.nationmultimedia.com/politics/NBTC-had-legal-obligation-to-ensure-fair-3G-bid-30193032.html

[lomatopo]

Note that this is a multi-page report, continued via the link below, then on to a longer PDF.

Thai 3G auction was not too cheap

Dominic P Arena/Value Partners | October 25, 2012

Citizens, businesspeople and industry professionals everywhere are congratulating the NBTC for finally injecting much needed new bandwidth into the Thai telecoms market, at a price which is arguably fair market value for all – State and Industry alike. Commercial Mobile Network Operators (MNOs) will now use this spectrum to deploy and offer a wide array of affordable wireless broadband (3G and 4G) services which will bring Thailand massive economic and social benefits.

However, whilst it seems everyone agrees on the benefits 3G and 4G can bring to Thailand with the allocation of the 2.1GHz spectrum, it also seems that the final auction result has caused much heated discussion. This discussion has been fuelled by threats of legal challenges and unfounded sensationalist claims of “super low prices bringing a windfall to private operators at the expenses of the State.”

http://www.telecomas...s-not-too-cheap

[Sam Drucker]

Any insights on why they are writing stories like this? Am I missing something here?

Sorry, what stories are you referring to?

All of the winners are preparing to debut their 2100 MHz 3G service as licensees

This is the first auction, and the first move into the license era from the concession era. Maybe that is what "these stories" are referring to?

Maybe you are just misunderstanding the wording?

I quoted two lines in my post #269 as an example of what I was referring to. They came from an article in your post #268. Let me highlight them further:

The three bid winners of 2.1-gigahertz (GHz) spectrum slots have begun preparing on many fronts to debut their 3G services.

(All three already offer 3G services.)

The race for 3G supremacy has begun. Despite differences in their balance sheets and partners, all will launch their services in the equal regulatory landscape created by the licensing regime.

(They've had 3G services for a year already.)

There have also been numerous articles in the past month or two with similar wording.

"Maybe you are just misunderstanding the wording?"

Good point. I never made distinction nor realized the significance that we were changing eras here. But shouldn't this all be fairly invisible to the consumer? At best, isn't it just a technical upgrade and expansion of service? As a current 3G consumer, what am I going to notice that changes, other than when I travel through more rural areas in the future, I'll have 3G in areas where I currently do not?

Right now, I use AIS, I get 3G, and I buy more services at 7-Eleven from AIS when my balance is low. Am I going to notice any change when 2.1 GHz actually hits?

Thus, my point again is that these news stories have been reading like consumers do not currently have 3G services available. Is it just a poor translation and command of English?

[lomatopo]

Thus, my point again is that these news stories have been reading like consumers do not currently have 3G services available. Is it just a poor translation and command of English?

I guess you should contact the editor(s) of the various publications which seem to be causing your dismay or confusion?

TrueMove's concession ends next year, in theory their 850 MHz 3G service will end and be replaced with a new brand, TrueFuture, with new services, on a new frequency.

AIS's 900 MHz concession ends in 2015, so I'd expect to see something similar from them. Maybe a whole new pre-paid brand?

Additionally, any of the auction winners could use their 2100 MHz spectrum for 4G/LTE.

I am not sure I understand why this huge change should be invisible to the customer?

None of these articles say there are no 3G services today, just that new services are coming in the future. Old services ending, new services beginning - simple. I am struggling to understand your point, but maybe no need to convince me?

[thaicbr]

Any insights on why they are writing stories like this? Am I missing something here?

Sorry, what stories are you referring to?

All of the winners are preparing to debut their 2100 MHz 3G service as licensees

This is the first auction, and the first move into the license era from the concession era. Maybe that is what "these stories" are referring to?

Maybe you are just misunderstanding the wording?

I quoted two lines in my post #269 as an example of what I was referring to. They came from an article in your post #268. Let me highlight them further:

The three bid winners of 2.1-gigahertz (GHz) spectrum slots have begun preparing on many fronts to debut their 3G services.

(All three already offer 3G services.)

The race for 3G supremacy has begun. Despite differences in their balance sheets and partners, all will launch their services in the equal regulatory landscape created by the licensing regime.

(They've had 3G services for a year already.)

There have also been numerous articles in the past month or two with similar wording.

"Maybe you are just misunderstanding the wording?"

Good point. I never made distinction nor realized the significance that we were changing eras here. But shouldn't this all be fairly invisible to the consumer? At best, isn't it just a technical upgrade and expansion of service? As a current 3G consumer, what am I going to notice that changes, other than when I travel through more rural areas in the future, I'll have 3G in areas where I currently do not?

Right now, I use AIS, I get 3G, and I buy more services at 7-Eleven from AIS when my balance is low. Am I going to notice any change when 2.1 GHz actually hits?

Thus, my point again is that these news stories have been reading like consumers do not currently have 3G services available. Is it just a poor translation and command of English?

as far as i'm aware ALL the 3G services in Thailand with the exception of TOT (2100mhz for 2 years..sod all coverage) are classified as trials. Not full blown services.

[lomatopo]

as far as i'm aware ALL the 3G services in Thailand with the exception of TOT (2100mhz for 2 years..sod all coverage) are classified as trials. Not full blown services.

Not sure what this means re: Sam Druckers challenges? Or who is doing the classifying. Or what "full blown" services are? Or what trials are?

TrueMove H, AIS and DTAC have BTO concessions from CAT and TOT, they pay their concessionaires a percentage of their revenue, a sickly amount actually, ~ 27% on average. They can offer any services they chose on those concessions - 3G being just one, more or less treated by the concessionaires as an extension of 2G data services.

[thaicbr]

as far as i'm aware ALL the 3G services in Thailand with the exception of TOT (2100mhz for 2 years..sod all coverage) are classified as trials. Not full blown services.

Not sure what this means re: Sam Druckers challenges? Or who is doing the classifying. Or what "full blown" services are? Or what trials are?

TrueMove H, AIS and DTAC have BTO concessions from CAT and TOT, they pay their concessionaires a percentage of their revenue, a sickly amount actually, ~ 27% on average. They can offer any services they chose on those concessions - 3G being just one, more or less treated by the concessionaires as an extension of 2G data services.

This is TRUE. But they need permission from the concession holder .. all the 3g except TOT are classified as trials .. this is Thailand after all

sent from my ..................#

[TallGuyJohninBKK]

I remember various news reports over the years where the concession holders were objecting to this or that carrier's roll-out or expansion of their fledgling 3G services, maintaining they didn't have the right to offer commercial 3G under their existing agreements.

That's why, for example, True (back before True Move H came along) operated their 3G service in BKK on the 850 Mhz band for quite a long time as a non-paid kind of perk to their existing paying customers. And they always called it a "trial" service to avoid/evade problems with the government.

But that raises a good point/question that I haven't seen an answer to... Maybe it's been addressed here...

TrueMove H has been running their 3G on the 850 Mhz band, AIS on 900 Mhz, and only TOT/I-Mobile on the 2100 Mhz band...

Now in the brave new world of "official" Thailand 3G on 2100 Mhz, what's going to happen to True Move H's service on 850 Mhz and AIS' on 900 Mhz?

And what's that going to mean for the longtime silly practice of True only marketing 3G phones that had the 850 Mhz band, but not 900 Mhz. And AIS doing the reverse, marketing phones with the 900 Mhz band, but not 850 Mhz?

[lomatopo]

I think concession holders pay concessionaires different percentages for voice and data, at least in some cases that is true, hence the initial issues surrounding roll-out of 3G services.

Now in the brave new world of "official" Thailand 3G on 2100 Mhz, what's going to happen to True Move H's service on 850 Mhz and AIS' on 900 Mhz?

What is supposed to happen is that, at the end of next year, True will return all of their spectrum to the NBTC for future auction and infrastructure to CAT. Similarly, at the end of 2015 AIS would return their 900 (and they have some 1800 as well) spectrum to the NBTC, and hand over their infrastructure to TOT. Whether this ultimately happens remains to be seen. Perhaps you can understand why CAT and True have a new 14 year agreement, which may or may not be "legal"? And why AIS wanted spectrum adjacent to TOT.

I think going forward service providers will continue to market hardware best suited for their network(s), as do service providers all over the world.

[TallGuyJohninBKK]

I think going forward service providers will continue to market hardware best suited for their network(s), as do service providers all over the world.

I guess the question is, if AIS and True Move H going forward will be running their 3G networks over their newly licensed spectrum on the 2100 Mhz band, then there wouldn't be the need for today's 850 and 900 Mhz frequency band differentiation any more.

Unless, what if anything is going to be running in the future on the 850 and 900 Mhz 3G bands that most users currently have on their phones (apart from the normal mobile voice bands)?

[skippybangkok]

I think going forward service providers will continue to market hardware best suited for their network(s), as do service providers all over the world.

I guess the question is, if AIS and True Move H going forward will be running their 3G networks over their newly licensed spectrum on the 2100 Mhz band, then there wouldn't be the need for today's 850 and 900 Mhz frequency band differentiation any more.

Unless, what if anything is going to be running in the future on the 850 and 900 Mhz 3G bands that most users currently have on their phones (apart from the normal mobile voice bands)?

Quite the opposite, 850 will be very important upcountry. AIS will be in the reverse of True on 2G. AIS 900 MHz (2G) has better propagation ( longer distance ), therefore less cells required. True on 1800 MHz (2G) would need more towers to cover the same area. 2100 MHz will be slightly more constrained than 1800mhz requiring significant more infrastructure if deployed= more cost. 2100 MHz would be better in the City

[lomatopo]

I think the NBTC is considering extending TrueMove's, and AIS(DPC) 1800 MHz concession beyond the September 15, 2013 date?

http://www.telecomasia.net/content/ais-truemove-get-concession-extension

http://www.nationmultimedia.com/business/CAT-claims-TrueMove-DPC-customers-as-legally-its-o-30187403.html

[lomatopo]

Anudith backs NBTC, says 3G auction complied with relevant regulations

USANEE MONGKOLPORN

THE NATION

Tokyo October 29, 2012 1:00 am

Information and Communications Technology Minister Anudith Nakornthap said he strongly |supported the National Broad-casting and Telecommunications Commission (NBTC) over its recent auction of the 2.1-gigahertz spectrum to grant spectrum licences.

He said the auction process was according to relevant laws and regulations. The auction and the licensing will help expand broadband accessibility in Thailand, he added.

"Thailand needs to move ahead in terms of ICT development," Anudith said.

http://www.nationmultimedia.com/business/Anudith-backs-NBTC-says-3G-auction-complied-with-r-30193167.html

[lomatopo]

DTAC seeks high 3G return from spectra

SIRIVISH TOOMGUM

THE NATION October 29, 2012 1:00 am

Total Access Communication (DTAC) aims to further boost mobile data revenue at a rapid pace by cashing in on the huge bandwidth - the existing 850-megahertz (MHz) and the upcoming 2.1-gigahertz (GHz) spectra - according to chief executive officer Jon Eddy Abdullah.

He said that first of all, DTAC is satisfied with the outcome of the recent 2.1GHz spectrum auction, as the National Broadcasting and Telecommunications Commission (NBTC) held the auction on schedule and made the long-awaited bid a reality.

"We're very pleased with the outcome, because the NBTC [was able to] keep the timeline - we had an auction, the NBTC announced the winners, and Thailand moved forward with the auction," he said.

http://www.nationmultimedia.com/business/DTAC-seeks-high-3G-return-from-spectra-30193170.html

[lomatopo]

True aims to break even on 3G by 2018

Usanee Mongkolporn

The Nation October 23, 2012 1:00 am

True Corp expects to break even on its upcoming 3G-2.1GHz service within five or six years, chief finance officer Noppadol Dej-udom said yesterday.

Although True might not need a strategic partner for purely financial reasons to bolster its business offering third-generation wireless broadband, it does require a partner to enable it to procure 3G mobile devices and a network on a cost-effective basis, he added.

"Money is no longer the issue for us," he said.

True's subsidiary Real Future was one of three bid winners at the National Broadcasting and Telecommunications Commission (NBTC) auction of slots on the 2.1-gigahertz spectrum last Tuesday.

True used its own cash flow of about Bt10 billion to pay for the 50-per-cent final up-front fee for the three slots acquired by Real Future in the auction.

http://www.nationmultimedia.com/business/True-aims-to-break-even-on-3G-by-2018-30192839.html

[lomatopo]

Moody's sees positive credit outlook to True Corp

The Nation October 25, 2012 11:01 am

True Corp's success in winning three lots of 3G spectrum bandwidth for a total bid price of Bt13.5 billion is credit positive to the company, said Moody's Investors Service

Issuance of the 3G licenses to its wholly-owned subsidiary, Real Future Co Ltd, under the current format and prices will bring certainty to True Corp's operating platform ahead of the expiration of its existing 1,800-megahertz (MHz) concession agreement with CAT Telecom in September 2013, under which True Corp had 17.3 million subscribers as of June 2012, Moody’s said in its "Credit Outlook" report.

True Corp also serves 2.0 million subscribers under its 850MHz 3G reseller agreement with CAT, which is currently being renegotiated as a result of regulatory scrutiny of the contract terms. Since commencing commercial 3G services in August 2011 under the reseller agreement, True Corp has enjoyed an early-mover advantage in offering 3G services under the TrueMoveH brand.

Moody’s does not rate Advanced Info Service and Total Access Communication, which also win three slots each from the same auction.

According to Moody’s, the outcome is positive for True Corp, given its relatively weaker financial stances.

http://www.nationmultimedia.com/business/Moodys-sees-positive-credit-outlook-to-True-Corp-30192975.html

[TallGuyJohninBKK]

DTAC seeks high 3G return from spectra

Thanks for posting this article... The full text begins to answer the question I asked here the other day...of what's likely to happen to the existing telcom's 850 and 900 Mhz 3G bands/services once the new 2100 Mhz services comes online.

From the article's report, it looks like the telcoms plan, at least for the foreseeable future, to run their 3G services on both their 850/2100 (True and DTAC) and 900/2100 (AIS) Mhz bands.

At least moving forward, phone users will have better handset compatibility with 3G, since all 3 of the major telcoms will have 3G on the 2100 Mhz band and all/almost all 3G capable handsets include the 2100 Mhz band. Unlike the current situation, in which many handsets sold in Thailand only have 850 OR 900 Mhz 3G but not both, leaving many users tied to either the DTAC/True or AIS camps.

DTAC will deploy its 3G-850MHz network to support its planned 2.1GHz network. During the peak usage of the 2.1GHz service, it will unload traffic to the 3G-850MHz network in order to maintain 2.1GHz service quality during the peak hours.

TRUE EXPECTATIONS

Its rival Real Future will also leverage the 3G-850MHz network of its subsidiary BFKT (Thailand) to support its 3G-2.1GHz network build-up and provide roaming to prospective 2.1GHz subscribers. True Corp recently said it expects to break even on its upcoming 3G-2.1GHz service within five or six years. It plans to rename Real Future as True Future and has also considered restructuring its business group to prepare for the launch of the 3G-2.1GHz service. It might also seek foreign partnership to enable it to procure 3G mobile devices and a network on a cost-effective basis. True's Real Move currently has around 3 million 3G-850MHz subscribers.

At the end of the third quarter, DTAC, which has Norway's Telenor as strategic partner, had about 3,500 3G-850MHz sites in Bangkok and 42 other provinces. It maintains the target of completing a total of 5,000 3G-850MHz sites nationwide by the end of 2012.

AIS, which has yet to announce third-quarter operating results, continued to expand its 3G-900MHz footprint and capacity in the second quarter with 3,500 base stations in 17 key strategic cities to serve rising demand for mobile data connectivity.

[lomatopo]

In theory DTAC's 850 and 1800 MHz concession ends in 2018, so they can offer voice and data services on those in addition to the 2100 MHz they recently purchased at auction. They could run LTE/4G on 850, 1800 or 2100 MHz if they wanted.

TrueMove H is a reseller of CAT's 850 MHz network - they have a 14 year "deal". Not sure if that will hold. They have ~ 2 million customers.

TrueMove's concession on 1800 ends next year, not sure what will happen to their 17 million customers?

TrueFuture, the planned True brand for 2100 MHz, might also get some/all TrueMove's customers, not sure about TrueMove H's 2 million current customers - maybe they'll get dumped on to CAT and/or their MVNOs?

Hopefully True have a plan, or clue, about reducing brand dysfunction?

AIS's 900 MHz concession ends in 2015, I guess they will migrate customers to 2100 MHz?

TOT is planning on Samart (iMobile) taking a significant chunk (40%) of their 2100 MHz network - they'll also continue to "share" with AIS via roaming.

[lomatopo]

NBTC blasted over 'low' prices gained at 3G auction

ASINA PORNWASIN

THE NATION October 30, 2012 1:00 am

Academicians and the telecom regulator yesterday clashed over the outcome of the recent auction of bandwidth on the 2.1-gigahertz spectrum.

Somkiat Tangkitvanich, president of the Thailand Development Research Institute, said the reserve price of Bt4.5 billion per spectrum slot was not suitable. It should have been Bt5 billion or more.

The 2.1GHz slots will be used to provide third-generation wireless broadband.

A report by independent consultancy The Value Partner that was recently released to the public by the National Broadcasting and Telecommunications Commission (NBTC) might make people think that the price of Bt4.5 billion was not too low, and not lower than what was paid in many developed countries, he said.

http://www.nationmultimedia.com/business/NBTC-blasted-over-low-prices-gained-at-3G-auction-30193281.html

[lomatopo]

3G winners jointly refute collusion claims

USANEE MONGKOLPORN

THE NATION October 30, 2012 1:00 am

The three cellular operators also said they were obligated to comply with the stated intention of the National Broadcasting and Telecommunications Commission to make it mandatory for them to offer low 3G service prices. As telecom operators, they had to comply with NBTC regulations, they said.

However, they could not yet say how much cheaper the fees would be, pending calculation of the actual overall costs each would face.

http://www.nationmultimedia.com/business/3G-winners-jointly-refute-collusion-claims-30193280.html

[lomatopo]

Thai 3G: it comes down to this

October 30, 2012

The various sides in Thailand’s 3G war of words have faced off in front of parliamentary and senate committees, the press and of course the court of public opinion. With each side standing their ground, now is the time to take stock and form an opinion.

The only highlights were how one commissioner told the panel to slit his throat if he was wrong, only to be upstaged by another who swore to the gods that if he was corrupt for his family and parents never again to be reborn as human and to spend eternity as low level animals. One of those two drama queens is a lawyer, the other, with a PhD in engineering.

http://www.telecomasia.net/blog/content/thai-3g-it-comes-down?Don%20Sambandaraksa

[lomatopo]

NBTC: 'No idea' when 3G licences will be handed out

Nov 01, 2012 (McClatchy-Tribune Information Services via COMTEX) -- The National Broadcasting and Telecommunications Commission (NBTC) has to delay granting 3G licences to the three bid winners of the recent auction.

The regulator has no idea when it will award the licences, said NBTC secretary-general Takorn Tantasit.

http://sip-trunking.tmcnet.com/news/2012/10/31/6691082.htm

[lomatopo]

CAT Telecom aims to tighten up for efficiency and profit

Sirivish Toomgum

The Nation November 1, 2012 1:00 am

CAT Telecom will streamline and strengthen its operations next year to survive rising competition and plunging profit.

"It's the first step to make CAT lean and more efficient in serving customers," chief executive officer Kittisak Sriprasert said. "CAT will try to bundle all solutions and products into one package to offer to customers," he said.

The state enterprise needs to prepare for fiercer competition from the imminent launch of third-generation cellular services by private operators licensed by the National Broadcasting and Telecommunications Commission (NBTC).

CAT's board has approved the restructuring plan, 2013-17 financial performance improvement plan and the plan to manage network assets and spectra under the concessions it has granted. Next year, senior executive vice president posts will be consolidated to 10 from the present 12 and more resources will be allocated to the units that can generate high revenue. CAT still has room to compete in the 3G service market against the three winners of slots on the 2.1-gigahertz spectrum, thanks to the fast-growing consumer demand for mobile data. "Actually, CAT regards every operator as a partner," he said.

CAT and True's subsidiaries Real Future and Real Move in January 2011 signed the network rental and bandwidth wholesale-resale contracts to forge a partnership to provide 3G service on the 850-megahertz band. The CAT-True 3G contracts have provoked criticism and a series of probes by authorities over their doubtful legality. The NBTC's telecom committee has ordered CAT and True to hurry and finish the joint amendment of their 3G service partnership contracts to make them comply with the Frequency Allocation Law. The deadline for their complete joint contract revision has been extended twice. Kittisak said the two parties had almost completed the joint contract revision. CAT's vision is to become the national telecom network provider. Its short-term strategy is to maximise existing network assets to make revenue, while its long-term plan is to provide advanced wireless broadband services such as 4G.

The state enterprise has to make a big change to deal with many impending risks. The 1.8GHz concessions of TrueMove and Digital Phone Co will end next September. Starting in 2014, TOT and CAT will have to pass their concession revenue to the NBTC, which will transfer the funds to the state coffers, as stipulated by the Frequency Allocation Law. CAT is expected to suffer a net loss of Bt3 billion this year, Kittisak said. If excluding concession revenue, CAT is expected to suffer a net loss of Bt1.81 billion next year.

http://www.nationmultimedia.com/business/CAT-Telecom-aims-to-tighten-up-for-efficiency-and--30193440.html

[lomatopo]

NBTC 'should grant licences to 3G winners'

Sirivish Toomgum

The Nation November 2, 2012 1:00 am

The National Broadcasting and Telecommunications Commission should press ahead with issuing the three 2.1-gigahertz spectrum licences or it will risk violating its own regulations, industry heavyweights and a scholar said yesterday.

Sudharma Yoonaidharma, dean of the law school at the University of the Thai Chamber of Commerce and a former member of the now-defunct National Telecommunications Commission, said the regulator could withhold the licences only if a court or state authority ordered it to do so, if they found irregularities in the auction process.

Under the terms of the spectrum auction held last month, the NBTC has to grant licences to the bid winners within 90 days of approving the outcome. It staged the spectrum auction on October 16 and approved the results on October 18. Sudharma said the watchdog had to observe its own licensing regulations strictly. If not, it would find it difficult to regulate the market with any credibility.

It would also face a charge of negligence of duty if it failed to observe its own rules.

http://www.nationmultimedia.com/business/NBTC-should-grant-licences-to-3G-winners-30193510.html

[AgentSmith]

So finally Thailand is moving towards nation wide 3G. 2100 MHz is fairly standard internationally but HSDPA+ on 900 MHz would be a big plus especially in terms of reception. Will AIS keep expanding its 900 MHz 3G network? Legal or not, I just want fast mobile internet everywhere I go.

[lomatopo]

AIS's concession ends in 2015, I doubt they'll expand 900 MHz much? Assuming the recent auction holds AIS would build out 2100 MHz.

We do have nationwide 3G, but not 100% coverage (either geography or population), now.

[skippybangkok]

So finally Thailand is moving towards nation wide 3G. 2100 MHz is fairly standard internationally but HSDPA+ on 900 MHz would be a big plus especially in terms of reception. Will AIS keep expanding its 900 MHz 3G network? Legal or not, I just want fast mobile internet everywhere I go.

No sane company would roll out a 900 MHz 3G network. Cause it a non standard frequency, there are limited handsets on the market, and typically have to pay a premium. It's no accident that AIS has the worst 3G network..... They have to be seen in the market to be doing 3G ( brand / positioning ), but they know its not the future and were desperate for 2100mhz. That's why they came out a while ago saying they have done 4g, chest beating, trying to tell their customers their in the game.

[AgentSmith]

Actually most handsets on the market are at least dual band models when it comes to umts. 900/2100 is very common worldwide. With a few exceptions such as Thailand where also 850/2100 models are being sold. It would actually make a lot of sense to use the 900 MHz frequency band. By far most handsets support it and it is a huge improvement in terms of reception, especially indoors. It would make the transition to 3g only thus phasing out 2g a lot smoother.

[lomatopo]

Telecom sector

CIMB Securities (Thailand) November 2, 2012 6:01 pm

Telco - Mobile Left hanging on the line UNDERWEIGHT - Downgrade

The risk of a delay in 3G licensing further strengthens our contrarian negative outlook on the sector. In addition to the mismatch between 3G-related costs and benefits, our channel checks also indicate that heated competition would curtail margins in the short-term. Our sector rating falls to Underweight from Neutral following our downgrade of DTAC to Underperform. We believe public pressure for mobile tariff and interconnection rate cuts would also be detrimental to the margin outlook. We would avoid 3G-related stocks (AIS, DTAC and True) but stay invested in Jasmine and Thaicom.

O

We believe public pressure for mobile tariff and interconnection rate cuts would also be detrimental to the margin outlook. We would avoid 3G-related stocks (AIS, DTAC and True) but stay invested in Jasmine and Thaicom.

3G licensing in 90 days?

We believe the National Broadcasting and Telecoms Commission (NBTC) will be able to issue 3G/2.1GHz spectrum and business licences to three winning bidders (AIS, DTAC and True) by 16 Jan 13 (90 days after the NBTC's telecoms panel has endorsed the auction result on 18 Oct

The NBTC's secretary general said that the licence issuance should be carried out on schedule if the NBTC's reviewing committee certifies the legality and transparency of the auction in 15 days and if there is no Administrative Court injunction to stop the licensing process. However, the risk of a licensing delay is rising as several authorities have threatened to file lawsuits against the NBTC on the auction's design failure as the uncompetitive bidding results drew criticism from several public groups, including academics, NGOs, senators, government officials and even several commissioners.

http://www.nationmultimedia.com/business/Telecom-sector-30193571.html

[lomatopo]

Fitch Revises Thailand's DTAC's Outlook to Positive

Published on: 2nd Nov 2012

Fitch Ratings has revised Thailand-based DTAC's Outlook to Positive from Stable. At the same time, the agency has also affirmed DTAC's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BBB-', National Long-Term Rating at 'A+(tha)', National Short-Term Rating at 'F1(tha)', and the National Long-term rating on its senior unsecured debentures at 'A+(tha)'.

The Outlook revision reflects Fitch's expectation that the regulatory environment for the telecom industry in Thailand will improve after the completion of 3G spectrum auction on 16 October 2012. This will enable DTAC to migrate its operation and subscribers to the new licence system which, unlike the current concession agreement, does not have pending legal and regulatory issues. Currently, DTAC operates its mobile service under the concession agreement which is exposed to legal and regulatory uncertainty including a pending investigation of past concession amendments and the concession expiry date.

http://www.cellular-news.com/story/57156.php