DTAC has warned that any further delays in 3G licence auctions could deter foreign investment and undermine the credibility of government policy.
If the government changes the way it treats foreign investors, it could damage the investment environment, said Tore Johnsen, CEO of the country's second-largest mobile operator.
But he expects a delay to be only of weeks or months, and said DTAC is confident of winning a licence.
The National Telecommunications Commission (NTC) hopes to award four 3G licences by the year-end _ three for 10 MHz and one for 15 MHz.
Mr Johnsen argued that the reserve price for a 3G licence should be between 2 billion and 4 billion baht, not the 10 billion set by the NTC. "The price is unreasonably high and tarnishes free and fair competition rules,'' he said.
He also suggested the NTC change the payment terms for 3G licences from a lump-sum to only half of the fee first and then installments over 10 years or over the whole life of the concession.
"This will give TOT and CAT Telcom a revenue stream on a yearly basis, while easing private operators' financial burden,'' he said, referring to state telecom enterprises that rely heavily on concession revenues from private operators.
Mr Johnsen rejected concerns that private operators might migrate their customers from the current concession-based companies to avoid sharing revenue with the state enterprises.
He said 3G was considered a supplementary service and firms could not force customers to move from voice-based service to mobile data numbers.
3G would take some time for the market to fully take up given the time for network rollout and the full availability of 3G handsets and devices, he added.
"TOT and CAT would only face a drop in revenues on a gradual basis, not a zero amount,'' he said.
Private operators would still need to use existing 2G networks, which means the two state enterprises could earn new revenue from infrastructure rental fees under the build-transfer-operate contracts, he added.
The two state enterprises should adjust their business direction and prepare to face a new regulatory system, he said.
Mr Johnsen urged all parties to recognise that consumers, businesses and the country would benefit from 3G because the communication infrastructure would be faster and more efficient.
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- Writer: Bangkokpost.com
