The telecom regulator is firm on the planned auction of fourth-generation (4G) licences on the 1800-megahertz spectrum in September despite the recent political turmoil.
Settapong: Package bidding the best
Col Settapong Malisuwan, vice-chairman of the National Broadcasting and Telecommunications Commission (NBTC), said the auction process, reserve prices and conditions will be considered by the telecom panel next month.
The NBTC's telecom committee has hired the UN's International Telecommunication Union (ITU) to study the auction methodology, evaluate the value of 1800- and 1900-MHz spectra, set the reserve prices and draft the licence conditions.
Most of the telecom committee's five members now agree with one option in the ITU's preliminary study, proposing a single combined auction of both bands or package bidding.
The 25-MHz bandwidth of the 1800-MHz spectrum is in use by True Move and Digital Phone (DPC) for another year after their concession rights expired last September.
True Move and DPC operate 12.5 MHz of bandwidth each.
Advanced Info Service (AIS) has 17.5 MHz of bandwidth from a 900-MHz concession under TOT expiring in March 2015.
The NBTC is considering an auction of 17.5 MHZ of the 900-MHz spectrum before the AIS concession expires, but the winner will be able to hold the spectrum rights after March 2015.
Last year, the ITU submitted a proposed auction design for 1800-MHz and related spectrum to the telecom committee.
It proposed three auction methods _ auctioning frequencies separately, having package bidding for the same frequency band and having package bidding on different frequencies.
"We initially agreed with package bidding on different frequencies," Col Settapong said.
The option of packaging spectra of 1800- and 900-MHz will likely be selected, but the NBTC must cautiously consider all legal viewpoints.
Col Settapong said it would be best if the 1,800- and 900-MHz spectra were offered for package bidding.
On the 1800-MHz spectrum, True Move operates on the 1710- to 1722.5-MHz range for uplinks and the 1805- to 1817.5-MHz range for downlinks.
DPC operates on the 1748- to 1760.5-MHz range for uplinks and the 1843- to 1855.5-MHz range for downlinks.
But Col Settapong said Total Access Communication (DTAC), whose concession will expire in 2018, holds the 1722.5- to 1748-MHz range for uplinks and the 1817.5- to 1843-MHz range for downlinks _ located in the middle of the frequency ranges between True Move and DPC.
Only 25 MHz of the 1800-MHz spectrum would not be enough for operators to provide 4G service. The minimum bandwidth requirement for 4G services is 20 MHz.
As well, 4G LTE technology could not operate on the 25 MHz, which is separated into two ranges.
If the NBTC can set a high auction bandwidth, it will benefit bidders with greater flexibility to apply proper technology to their services.
Previously, DTAC offered the NBTC inclusion of its unused spectrum under a 2G concession with CAT to expand bandwidth for the auction. Half of DTAC's 50-MHz spectrum is unused.