Thailand's 3G Auction Set To Go Ahead Today

[webfact]

TELECOMMUNICATION

3G auction set to go ahead today

USANEE MONGKOLPORN

THE NATION

BANGKOK: -- The country's long-awaited auction of the 2.1-gigahertz spectrum slots will go ahead as scheduled today after the Central Administrative Court rejected telecom scholar Anupap Tiralap's petition for an injunction to suspend the bidding.

However, the National Broad-casting and Telecommunications Commission (NBTC) is getting ready to deal with possible lawsuits stemming from its decision to go ahead, NBTC secretary-general Takorn Tantasit said. He added that people could take cases to the Office of the Auditor-General, the National Anti-Corruption Commission or to court if they believed the auction's outcome would affect public interest.

The auction will be closely monitored to see if it is competitive because many fear it may attract few bids and that this will result in a lower net return.

A telecom analyst estimated that the three bidders - Advanced Info Service's subsidiary Advanced Wireless Network, Total Access Communication's DTAC Network and True Corp's Real Future - would end up offering only Bt15 billion to grab the maximum three slots allowed, given that there are enough slots available. Proceeds from the auction are meant for state coffers.

The auction is expected to set in motion further liberalisation of the telecom industry from state concessions via the granting of the 2.1GHz spectrum and licences to private operators. If the operators can grab a licence, they can be ensured of being able to continue with the business even after their concession comes to an end.

Each of the three bidders is expected to spend between Bt40 billion and Bt50 billion to establish third-generation cellular networks in the first three years. They are expected to start service in the first half of next year once the NBTC grants licences in January. Telecom operators have been waiting for the allocation of 2.1GHz spectrum for almost a decade since the National Telecommunications Commission was established.

Anupap wanted the court to suspend the auction on grounds that the terms and conditions lacked measures defining 3G quality standards, a cap on 3G data-service fees, guarantee of equal 3G access to all Thais and an explanation of how the auction's proceeds will be used to benefit the public.

The Administrative Court yesterday ruled that the complainant was not the damaged party yet, because the expected damages had not actually taken place. The court suggested he file a petition with the Ombudsman's Office if he believed that the NBTC failed to follow the Constitution and relevant laws. It said the Ombudsman's Office could decide to take the case to court if there were enough grounds.

The court yesterday also dismissed a request for urgent inquiry filed by political activist Suriyasai Katasila, saying it would decide later whether the case was worth considering further.

Suriyasai, from the Green Politics group, sought to suspend the auction over concerns of possible bid collusion and a very low reserve price for the auction. He feared that if the auction goes ahead, it will see low competition in the bidding process and could cost the country several billion baht.

His assumption is based on the difference of the reserve price of Bt4.5 billion per slot of 5 megahertz bandwidth and Bt6.4 billion set as the full price.

Meanwhile, share prices of AIS, DTAC and True dropped during yesterday's morning trading session before rebounding in the wake of the court's decision in the afternoon. AIS shares yesterday closed at Bt202, unchanged from Friday, while DTAC shares closed at Bt88.25, up 1.4 per cent. True's shares remained unchanged, closing at Bt5.60.

The NBTC will put nine spectrum slots, each containing 5MHz bandwidth, up for auction at a reserve price of Bt4.5 billion. Each bidder is allowed to grab a maximum three slots or a total of 15MHz bandwidth. The auction will be divided in two phases - selecting the desired spectrum slots and allowing the bidder offering the highest price to be the first to choose the desired slots.

-- The Nation 2012-10-16

[ricku]

Finally Thailand's smartphone users can party like it's 2004!

[Lite Beer]

3G AUCTION

3G bidders bid for 8 out of 9 slots

The Nation October

Advanced Info Service (AIS), Total Access Communication (Dtac) and True Move came up with the bidding for eight slots of the 2.1GHz spectrum, out of nine available slots. Each slot's reserve price is Bt4.5 billion.

Settapong Malisuwan, chairman of the National Broadcasting and Telecommunications Commission (NBTC)’s telecom committee, noted that this is a historical milestone for the Thai Ttelecom industry, as it transfers the concession era into licensing era.

The bidding today started with the registration during 8-9am. Then, bidders picked the draw for the bidding rooms and document containing usernames and passwords. The first-round bidding started at 10am, witnessed by Eun-Ju Kim, regional director of ITU Reginal Office for Asia and Pacific and representatives from the Auditor General’s Office.

According to Settapong, in each round, bidders have 30 minutes to propose the prices, which must be raised by 5 per cent of the median price at Bt4.5 billion, or Bt225 million at a time. The bids will be evaluated by a computerised programme and the result will be known 10 minutes before the next round begins.

It turned out that each of the three rounds in the morning session took more than an hour.

Totally today, there will be 10-12 rounds or until 9pm.

Participants in the auction cannot leave the rooms until the auction is over, unless for toilets or emergency whereby they will be closely escorted by NBTC officers. Food and beverage is prepared in the room.

Settapong said that once the bidding for the desirable slots is over, the auction will move on to the selection for desirable frequencies. Top bidders of each slot are the first to pick the frequencies.

The auction results will be announced within 3 days and the licenses will be issued once bidders fulfil obligations within 90 days.

"NBTC has conducted the auction in discreet and legal manner, with the intention to turn the 2.1GHz spectrum into public use, for efficient and cheaper services. While revenue from the auction would go to the government, this auction will promote competition in the telecom industry, to ensure free and fair competition," Settapong said.

-- The Nation 2012-10-16

[Thai at Heart]

"Sorry, what was that, can't here you, what? I'll call you back, signal is bad."

[webfact]

RT @tulsathit: RT @Sasi_NT: Disappointed as of now. A total of bidding prices for #3G licenses is Bt41.625 bn, only Bt1.625 bn more than median prices.

RT @tulsathit: The way things (3G bidding) go, NBTC should start fortifying its HQ against brickbats.

[ttnice30]

The dream is slowly comes true at last for Thailand's 3G Network.

[webfact]

National Broadcasting and Telecom Commission closes 3G auction; bids totalled Bt41.625 billion; highest bids offered at Bt4.95 billion /MCOT

[webfact]

RT @veen_NT: Dr Somkiat in his statement: the Govt has lost Bt16.34 billion from the (lower-than-expected) 3G auction. via @MrNaling

[Thai at Heart]

Well, what do you expect when you have 3 evenly sized companies, fighting over 9 total slots.

[whybother]

RT @veen_NT: Dr Somkiat in his statement: the Govt has lost Bt16.34 billion from the (lower-than-expected) 3G auction. via @MrNaling

Why would it be lower than expected? There was no competition. There was more than enough band width for the 3 bidders. I'm surprised it went over the 15 billion baht minimum.

Of course it's not surprising that there was no competition. This government's "Foreign Dominance" legislation makes it near impossible for foreign companies to invest here.

[Arkady]

RT @tulsathit: RT @Sasi_NT: Disappointed as of now. A total of bidding prices for #3G licenses is Bt41.625 bn, only Bt1.625 bn more than median prices.

RT @tulsathit: The way things (3G bidding) go, NBTC should start fortifying its HQ against brickbats.

Yes, but what did anyone expect? The telecoms sector has been closed to direct foreign participation since the government was forced to open it up to the private sector in the 80s due to lack of funds and expertise. The 3G auction was the big opportunity to change all that but the NBTC ridiculously toughened the rules against foreign participation. Honestly what Thai firm would invest abroad under such conditions, i.e. minority ownership, no overt control of board or management? Why would Thai consumers care who owns the networks as long as they got the best service for the best price? There is no way that a company like True would ever have been able to survive in telecoms or cable TV with real world competition but Thais are stuck with hopeless operators like that. The majority of the people have to pay a high price for the entrenched government policy of protecting a small number of Thai business families against foreign competition. Anyway what would be the point of paying more in fees to the government where the money will just be stolen?

[webfact]

3G AUCTION

TDRI slams NBTC

The Nation

BANGKOK: -- Thailand Development Research Institute President Somkiat Tangkitvanich expressed his disappointment over the result of the National Broadcasting and Telecommunications Commission's 3G auction.

In a statement released after the auction results were announced, he said "The results are as expected as the figures slightly increased by 2.8 per cent from the reserve prices."

At the reserve price of Bt4.5 billion per each of the 9 slots, the cumulative reserve prices are Bt40.5 billion. The cumulative bids of Bt41.625 billion is below full value by Bt16 billion.

"Though this auction paves way for full 3G service next year, but this is associated with a disadvantage to the government and taxpayers. It’s like a fluke for all bidders, who will see a drop in annual concession fees by over Bt40 billion. With the low bids, this will fatten their balance sheets while consumers can expect no change in service fees," he said.

He added that NBTC has failed to prove that the auction would draw competition and the results convince the public that there was collusion.

Two major flaws in the auction are (1) the allocation of slots to satisfy bidders and (2) the too-low reserve prices.

"NBTC should show accountability to the government and the general public, and other related government agencies should also launch investigation into this," he said.

He also suggested that NBTC avoid using the same strategy in the auction of other licenses.

-- The Nation 2012-10-16

[OzMick]

So what value should we put on the monopoly licence formerly "given" to Thaksin?

[Rionoir]

He added that NBTC has failed to prove that the auction would draw competition and the results convince the public that there was collusion.

That's pretty clear, as the only outsider who tried to bid was kicked out of the bidding.

[whybother]

He added that NBTC has failed to prove that the auction would draw competition and the results convince the public that there was collusion.

That's pretty clear, as the only outsider who tried to bid was kicked out of the bidding.

Who was kicked out?

[IsaanUSA]

Sounds like it was a success. The companies got a good deal, and true 3G should be rolled out in the near future. If the government needed more money then they should have raised the minimum asking price. But it sounds like the government agency made a 2.8% premium over what they were asking, so I don't see the problem.

[Time Traveller]

Finally Thailand's smartphone users can party like it's 2004!

In 2006, at a Nokia shop the salesman sold me a mobile phone that was capable of using 3G service which he mentioned would be available in Thailand within 6 to 12months. In 2010, the phone died, never to be used for 3G calls. I then got another 3G enabled mobile phone which also died several months ago without ever using the 3G service. Recently I just left Thailand to live in a 4G country.....never did get to experience 3G.....someone please let me what it is like? I'd also like to find what the rest of the world was experiencing in 2004.

Again Thai consumers are the losers.

Edited October 16, 2012 by Time Traveller

[webfact]

please continue:

Thailand raises $1.4 bln in 3G mobile auction

Full story:

//CLOSED//