Thai telco True Corp says that while it welcomes plans by the National Broadcasting and Telecommunications Commission (NBTC) to hold a new spectrum auction in April, it objects to the reserve prices and the requirement that telcos must pay at least 50% of their winning bid upfront.
Earlier this week, the NBTC released draft guidelines for its next spectrum auction, with licences in the 850-MHz, 1500-MHz, 1800-MHz, 2100-MHz, 2300-MHz and 26-GHz bands up for grabs. According to The Nation, reserve prices range from THB423 million (just over US$12.5 million) for the 26-GHz band to THB6.6 billion baht for the 850-MHz band, for a total combined value of just over THB121 billion.
One of the guidelines states that telcos that win licences in the sub-6 GHz bands must pay in three instalments – 50% for the first year, and 25% each for the second and third years. Licences for the 26-GHz band must be paid in full. Under previous auctions, telcos were allowed to pay for licences in ten instalments.
In a statement issued on Thursday, True’s chief corporate affairs officer Chakkrit Urairat said while the reserve prices are lower than previous auctions, they’re still significantly higher than the average prices for similar bands internationally.
“This increases the risk that NBTC may not allocate as much spectrum as needed, causing Thailand to miss opportunities to utilize this national telecommunications resources,” he said.
Chakkrit added that the updated payment requirements were too steep, given the current economic climate.
“The payment terms do not align with the country’s economic conditions and may hinder telecommunications network investment capabilities, given the requirement of a 50% payment in the first installment [before the license is issued],” he said.
Chakkrit proposed that the NBTC stick with the ten-installment payment plan model used in previous auctions.
Chakkrit also proposed that the NBTC implement simultaneous ascending clock auctions across all spectrum bands “to promote competition and transparency, allowing participants to bid on all bands concurrently while reducing uncertainties in the auction process.”
