Thai editorial: Successful 4G bidding just half the battle

[webfact]

EDITORIAL
Successful 4G bidding just half the battle
The Nation

The national telecom regulator should help new firms break the grip of the "big three", thus assuring reasonable service rates

BANGKOK: -- There were few surprises in the just-ended 4G bidding hosted by the National Broadcasting and Telecommunications Commission (NBTC). Key players True Move H Universal Communication (True) and Advanced Info Service (AIS) remain the dominant forces in the lucrative industry after securing 1800MHz licences. And all the signs indicate they will be even more omnipresent for the near future.

The question now is whether the viewing public - which is constitutionally entitled to benefit from the bidding process - actually derives any good.

The auction reflected a key element of the Constitution, which regards telecom frequencies as natural resources. As such, they "belong to the people" rather than any business or investment group. To be sure, substantial financing is required to develop the frequencies for public use in the first place. Because of this, having corporate rivals compete in a bidding process might not be the ideal way to proceed, but at least it does bring out the system's potential developers.

There were cheers at the success of the 4G auction, which added Bt80.78 billion to state coffers. The bidding was fierce, extending over 30 hours, with market leader AIS taking on second-ranked Total Access Communications (Dtac), third-largest mobile operator True and newcomer Jasmin International over just two licences.

Observers of a technocratic bent have said the aggressive bidding and better-than-expected outcome prove that the competition was fair, and indeed the NBTC and all parties involved expressed satisfaction with the procedure.

Many consumers, however, remain cynical. They wait to see whether all that bidding fury and the huge amount of money put on the table will translate into better service for them.

For the telecom regulator, at least, the battle is half won. The NBCT has shown it is capable of holding a fair, corruption-free auction that generates enormous revenue for the country. It has been criticised, though, for offering just two licences, and thus not creating an environment in which newcomers like Jasmin might gain access to this lucrative industry.

The remainder of the battle has

its parameters laid out in the Constitution, and that too addresses the interests of newcomers.

The NBCT is mandated to protect consumers, the owners of those valuable frequencies. It must ensure there is healthy competition that in turn guarantees reasonable service fees. Encouraging newcomers prevents established heavyweights from dominating the trade, as has happened in the past. In fact the Thai industry was long dominated by just a few players, resulting in relatively high fees here compared to neighbouring countries.

The 4G auction is seen as a significant step forward in realising the government's ambitions for a "digital economy". More importantly, the frequencies have become essential tools not just for the business sector but also in the imparting of education to the general public - and hence bolstering Thailand's global competitiveness. It is the duty of the NBCT to make sure these "natural resources" are distributed as broadly and equitably as possible.

Next month brings another auction, for two more 4G licences, this time of 900MHz frequency. It will be another test for the industry regulator, another chance to chip away at the dominance of the "big three". Consumers will again be watching carefully.

Source: http://www.nationmultimedia.com/opinion/Successful-4G-bidding-just-half-the-battle-30273153.html

-- The Nation 2015-11-18

[bangon04]

"Many consumers, however, remain cynical. They wait to see whether all that bidding fury and the huge amount of money put on the table will translate into better service for them."

Oops - they were supposed to forget the 3G fiasco, but they didn't get the memo.

"Successful 4G bidding just half the battle" - not even close.......

Edited November 18, 2015 by bangon04

[Srikcir]

"The auction reflected a key element of the Constitution, which regards telecom frequencies as natural resources."

Might that "Constitution" be the abolished 2007 Constitution? I find nothing in the Interim Charter that refers to use of natural resources.

There is the Goods and Services Price Control Act of 1999 that allows the government to interfer with company profit margins. So the government doesn't need constitutional authority.

[fred Kubasa]

Happy I am NOT a customer of the winners as they will get hefty/undisclosed

FEES to pay off the massive loans the winners took out !