900MHz auction set to be major windfall for Thai govt

[webfact]

4G AUCTION
900MHz auction set to be major windfall for govt
Usanee Mongkolporn,
Sirivish Toomgum
The Nation


4G Auction

BANGKOK: -- THE AUCTION prices for two 900MHz spectrum licences for 4G cellular services had already surged to Bt81.112 billion combined at press time yesterday, exceeding the combined price of Bt80.778 billion fetched for two 1800 MHz licences at auction last month.

Based on the latest prices, the government will get at least Bt161.9 billion in total from this licensing round.

As of press time, the 900MHz auction was still under way, after starting at 9am on Tuesday.

After the 81st round of bidding, the prices of the first and second 900MHz licence blocks were identical at Bt40.556 billion each - some 215 per cent higher than the Bt12.864-billion starting price.

The four bidders are Advanced Wireless Network, a subsidiary of Advanced Info Service (AIS); DTAC TriNet, a unit of Total Access Communication (DTAC); True Corp's True Move H Universal Communication; and Jas Mobile Broadband, a subsidiary of Jasmine International.

A telecom analyst said the most likely scenario was that AIS and DTAC would each win one block of the spectrum, given that they have stronger balance sheets than the other participating groups.

The analyst predicted a final price of Bt40 billion per block, with every additional Bt10 billion that AIS and DTAC had to pay for a licence meaning it could reduce 2016 and 2017 earnings by about 2 per cent for AIS, and 10 per cent for DTAC.

A less likely scenario is that AIS and True emerge as the auction winners. Since 900MHz is crucial for DTAC, True might try to obtain part of the spectrum in order to weaken DTAC's position.

If DTAC loses out, it will have to continue mainly using its existing 1800MHz and 850MHz bandwidth under concession, besides its 2.1GHz bandwidth under a National Broadcasting and Telecommunications Commission licence, in order to serve customers.

This could result in a sharp rise in its regulatory fee and depreciation expenses.

Source: http://www.nationmultimedia.com/business/900MHz-auction-set-to-be-major-windfall-for-govt-30275088.html


-- The Nation 2015-12-17

[Srikcir]

The government needs many more windfalls to avoid more deficit spending.

I'm sure the government is lamenting the delay from the windfall in auction of the oil & gas concessions; unfortunately the timing isn't the best for now.

All that 's left to increase government revenues are more foreign tourists - 40 million total for next year compared to 28.8 million this year.

[webfact]

Mobile licence bidding enters third day with prices rising to almost 100 billion now



BANGKOK: -- The marathon bidding for the two fourth generation (4G) mobile phone licences entered the third day with now prices climbed to 96,890 million baht in total at the end of 108th Round.

The first licence bid price at the 108th round at 6 am today was 47,640 million baht, while the second at 49,250 million baht.

The bidding continued into the 109th Round at 9 am with no sign that the four bidders would give up.

National Broadcasting and Telecommunications Commission vice president Col Sethapong Malisuwan said the intense competition reflected the fact existing operators did not want new players into the market and therefore they tried all means to win which included their expected fall in their profits.

He said another reason that stimulated fierce competition was the NBTC’s extension of licence payment period which was broken into four installments and that could serve as incentive for operators to compete.

According to the new payment rule, winner must pay the first installment of 8,040 million baht in the first year, 4,020 million baht per year in the second and third year, and the rest in the fourth year.

NBTC commissioner Pravit Leesatapornwongsa said the current bid price at 96,890 million baht for two licences was still not considered unusually high for the 900 MHz spectrum when compared with bidding in other country where one licence was bid at 52,000 million baht, and at the highest of 62,000 million baht in a country.

Full story: http://englishnews.thaipbs.or.th/mobile-licence-bidding-enters-third-day-with-prices-rising-to-almost-100-billion-now


-- Thai PBS 2015-12-17

[bangon04]

hope it gets done faster than the 3G farce.....