NBTC shrinks 4G bandwidth for auction

NBTC shrinks 4G bandwidth for auction

Secretary-general Takorn Tantasith of the National Broadcasting and Telecommunications Commission (NBTC) says he is sticking to the schedule for a November auction, but he is shrinking the amount of bandwidth for sale by 17%. (Bangkok Post file photo by Narupon Hinshiranan)
Secretary-general Takorn Tantasith of the National Broadcasting and Telecommunications Commission (NBTC) says he is sticking to the schedule for a November auction, but he is shrinking the amount of bandwidth for sale by 17%. (Bangkok Post file photo by Narupon Hinshiranan)

The fourth-generation (4G) auctions of the 1800-megahertz spectrum in November are likely to put up only 25 MHz of bandwidth for bidding instead of 30 MHz due to regulatory restrictions, says the national telecom regulator.

"The planned auctions of 30 MHz of bandwidth on the spectrum will have to be scrapped," said Takorn Tantasith, secretary-general of the National Broadcasting and Telecommunications Commission (NBTC).

"We will have to auction only two licences of 25 MHz of bandwidth, with each licence of 12.5 MHz, instead of two licences of 15 MHz each," he said.

Mr Takorn said before taking an additional 5 MHz of spectrum from Total Access Communication Plc (DTAC) for November's auctions, DTAC's mobile concession with its concession owner CAT Telecom must be amended beforehand.

Amendments to the concession agreement will take a few months to complete before they are submitted to the cabinet for approval.

"The whole process will not meet the auction schedule," Mr Takorn said.

The concession amendment is necessary in order to comply with the Public-Private Joint Venture Act.

Mr Takorn said even though the process of returning the unused 5 MHz on the 1800-MHz spectrum to the NBTC to add spectrum bandwidth for auction was not as planned, it will not affect the initial auction schedule.

"We are determined to stick to the November schedule, with 25 MHz," he said.

The NBTC plans to auction two licences of the 1800-MHz spectrum on Nov 11.

The draft auction designs of the 1800-MHz spectrum have been announced in the Royal Gazette.

The auction designs have clearly identified that the regulator would auction either 25 MHz or 30 MHz of bandwidth, depending on whether the return of the unused portion can be done on time.

The reserve price of the 1800-MHz band will start at 13.2 billion baht per 12.5-MHz licence, but the reserve price will be 15.9 billion per 15-MHz licence.

The reserve price represents 80% of the estimated real spectrum value.

Mr Takorn also said the latest cabinet reshuffle including MR Pridiyathorn Devakula, who previously was deputy prime minister for economic affairs, could be a major factor in the delay of the return of the 5-MHz portion.

Col Sanpachai Huvanandana, acting president of CAT Telecom, admitted he learned only last week that the return of the 5 MHz would need concession amendments.

Previously, CAT and then-ICT minister Pornchai Rujiprapa believed the spectrum return did not require amendments to the concession.

The 5-MHz portion is part of the unused 25-MHz spectrum that falls under the 2G concession operated by DTAC.

DTAC holds 50 MHz of bandwidth on the 1800-MHz spectrum under a concession agreement with CAT, due to expire in 2018.

The company now uses 25 MHz.

CAT and DTAC have jointly agreed to return to the NBTC a portion of 5 MHz of bandwidth from the unused 25 MHz on the 1800-MHz spectrum.

The return of 5 MHz is intended to benefit the telecommunications industry, as it would increase the bandwidth of each licence from 12.5 MHz to 15 MHz.

This could eliminate an immense waste of spectrum from a block size of 2.5 MHz per licence.

The ad hoc national digital economy committee, chaired by Prime Minister Prayut Chan-o-cha, has already approved the auction of the 30-MHz bandwidth on the 1800-MHz spectrum if the return can be done on time.

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