3G auction plan lauded

3G auction plan lauded

The major mobile operators have applauded the new third-generation licensing auction method, saying the draft frameworks are reasonably fair.

Operators said the framework drafted by the National Broadcasting and Telecommunications Commission's 2100-Megahertz committee sounded realistic.

But they suggested the NBTC impose a spectrum cap at 15 MHz each operator, said vice-chairman Settapong Malisuwan.

The NBTC plans to auction 45-MHz of bandwidth on the international standard 2.1-GHz spectrum under a couple possible options.

The 2.1-GHz spectrum could be split into five MHz each. Each bidder can obtain a maximum of 15 or 20 MHz of the bandwidth. Alternatively bidders may be allowed to acquire a lump-sum bandwidth of 15-20 MHz each.

The NBTC plans to scrap some conditions of the old framework set by its predecessor, especially the N-1 approach that makes the number of licences equal to the number of bidders minus one to promote competition.

Col Settapong said nine telecom firms met with the NBTC on Monday to brainstorm new auction methods. They comprised Advanced Info Service, Dtac, True Move, TOT Plc, CAT Telecom, Samart Group, Loxley, Benchachinda Holding and Jasmine International.

Wichian Mektrakarn, AIS's chief executive, said the company agreed with the new method allowing all operators to bid because this way no one has to wait at six months for the next auction.

"Given our large subscriber base, we want as much bandwidth as possible _ hopefully 20 MHz," he said.

Col Settapong said True Move also supported the 15-MHz spectrum cap proposal, and he was confident the auction would be held in October.

Somkiat Tangkitvanich, vice-chairman of Thailand Development Research Institute, said the slot-based auction would encourage more competition but it could not prevent collusion among bidders.

Dr Somkiat added NBTC's new reserve price for 3G licences of 7-10 billion baht each was too low because the three major mobile operators pay a combined 48 billion baht per year under their existing 2G concessions.

He said Dtac reportedly said it believed an appropriate 3G licence should cost 15 billion baht while AIS said operators would pay around 17 billion baht for a licence.

Col Settapong said the NBTC will conclude all conditions for the auction method within the next month.

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